Only 350 new vehicles imported to Nigeria in Q1 2017 —Toyota boss

NIGERIAN auto firms imported only 350 new vehicles into the country in first quarter of 2017, showing a drop of 90 per cent compared with 3,500 imported during same period last year.

The Managing Director of Toyota Nigeria Limited (TNL), Mr Kunle Ade-Ojo, who disclosed this at the quarterly press briefing of his organisation in Lagos, blamed the situation on the soaring forex and economic recession in the country.

He said the instability in foreign exchange contributed to high duty on imported vehicles, which also caused increase in selling prices of vehicles.

Comparing statistics of vehicular sales between last year and the period in review, figures show only 2,000 units have been sold in Q1 2017, against 5,500 units sold same period last year.

But not minding the drop in importation and sales, Ade-Ojo said the total forecast of vehicular sales for the year was between 8,000 and 10,000 vehicles.

He also said the good news for his organisation is that Toyota still had the lion’s share of 43 per cent of the 2015 imports, and 38 per cent of 2016 vehicle imports.

Assessing the situation further, Ade-Ojo said: “The devaluation of naira which caused scarcity of forex affected businesses and importation last year. For instance, in the first quarter of the year, the United States dollar was just about N200, and by the end of the year, it had doubled.”

This he said doubled the prices of vehicles in the space of one year, which he said a lot of businesses could not afford to pay for the increase, given that they were also struggling to survive.

“A lot of businesses could not pay for the increase. Many companies retrenched and had to priorities what they will spend their little funds more.

“It used to be every four year companies change their staff cars but has been increased to five years and above. Interest rates have gone up on interest rates for doing business.

“Dollar is scarce and same for naira. And while the Central Bank of Nigeria is saying it is releasing money, banks are saying there is no money. Customs import duty which had gone up also contributed to high cost of vehicles,” Ade-Ojo said.

However, the drop in importation of vehicles, the Toyota boss, said was not peculiar to this year alone, but said the trend which started like three years back, became more significant this year.

He said the total number of vehicles imported into the country in 2015 was 18,000, but dropped to 7,000 in 2016, while the total retail market, he said dropped steeply by about 42 per cent from 32,000 units in 2015 to 18,000 in 2016.

Also in the commercial and passenger vehicles segment, Ade-Ojo said the commercial vehicles sold more in 2016 at 70 per cent more than passenger cars, which recorded 30 per cent of the total sales.

He said Toyota had been able to weather the storm by ensuring cost management and prioritisation of vehicles being brought in, likewise boosting its after sales services and maintain a good relationship with stakeholders, which he said had helped in keeping their customers.