Forex affecting Nigeria’s auto industry —Toyota Nigeria MD

THE economic challenge facing the country is taking its toll on automobile business in Nigeria, thereby slowing down the pace of transaction in the industry.

The Managing Director of Toyota Nigeria Limited, Mr Kunle Ade-Ojo, who disclosed this at the company’s fourth quarter press forum recently held in Lagos, lamented the situation, saying the high foreign exchange rate has made 2016 a very tough year for automobile business in Nigeria.

Ade-Ojo said the condition became evident with almost 60 per cent drop in sales from between January and September this year, and doubling of prices of brand new vehicles, which he blamed on scarcity and high rates of foreign exchange.

“The foreign exchange threw a major challenge to everybody and as a result of that when we compare the imports this year with that of last year as far as brand new vehicles are concerned, there has been a drop of almost 60 per cent from between January and September this year.

“Last year, the whole market brought in about 15,000 and this year, it has reduced to 6,000 which is a major decline as far as importation is concerned.

With the prevailing situation, making a forecast into 2017 as far as retail sales are concerned, Toyota Nigeria boss said “the market is also going to drop to about 50 per cent,” predicating his submission on the downward trend of sales from 2015 to 2016.

According to him, “last year total sales were about 32,000 vehicles for retail last year, this year, we are forecasting maximum of about 16,000, so, it has gone down.

However, in spite of the drop economic downturn, Ade-Ojo said the internal workings of the company is kept intact, especially in staff strength, as Toyota Nigeria had resisted the temptation to sack staff, but only reduced cost to about 40 per cent because of prevailing economic challenges.

Ade-Ojo said the situation requires a pragmatic approach in cost effectiveness in some marketing activities, likewise maximise profit without spending as much as in the past.

“In spite of this, we all have to continue to re-invent ourselves so that one can remain relevant. If you don’t look ahead, you get left behind.

“So, it’s been a tough year for us but at the same time, we are grateful to God that we are doing well. Toyota Nigeria Limited has a strong foundation which we keep on strengthening for us to weather the storm,” Ade-Ojo said.