Nigerian automotive market projects a rebound in 2013-14

(live-PR.com) – After a 5.5 percent drop in sales in 2012, analysts continue to forecast that the new vehicles market will post a strong rebound in 2013 and in 2014, when we forecast a 7.8 percent rise in sales.

The Nigerian economy is set to be one of the continent´s strongest performers in 2014. It is projected that the country will register real gross domestic product (GDP) growth of 7.2 percent up from an estimated 6.5 percent in 2013. Inflation is at a 5-year low which in turn translates into improved purchasing power for the Nigerian consumer.

There are also signs that the Nigerian federal government is taking a more active role in encouraging and protecting domestic production. The country’s Federal Executive Council has approved a new Automotive Industrial Policy Development plan, aimed at addressing the shortcomings of previous policies and attracting investment in domestic production, in order to reduce the country´s soaring vehicle import bill.

Given the growth in vehicle imports in recent years, analysts believe the level of demand will gain the attention of major manufacturers, assuming the policy can be successfully implemented.