By Juliet Umeh
As technology plays an important role in every aspect of life, Nigeria’s automobile sector is not left behind.
More especially, as 2024 approaches, an industry expert, the Chief Operating Officer, COO of Cars45, Mr. Maxim Makarchuk is optimistic that the Nigerian used car market is surely positioned for a boom and would be influenced by factors ranging from technological advancement to harsh economy.
From records, the Nigerian used car market is a dynamic and ever-evolving landscape, currently valued at $1.14 billion according to data from Modor intelligence.
Cars45 COO said that the increasing reliance on technology to the emphasis on vehicle health and condition are the trends that will influence the way buyers and sellers navigate the roads ahead.
From all indications, staying informed about these trends and leveraging the power of technology will be key for all stakeholders in this vibrant and evolving market.
Key trends to shape sector in 2024
*Tech-driven Transparency:
According to Makarchuk, “Advancements in technology are fostering transparency in the used car market, providing buyers with a wealth of information. Online platforms and apps are enabling consumers to access detailed vehicle histories, reducing the risk of fraudulent transactions.
“Based on McKinsey’s findings, over 95 percent of searches for used cars commence online, as customers delve into vehicle details while making a purchase decision. This is a sure indication of users increasing trust and reliance on these online used car buying and selling platforms.”
*Shift Towards Online Transactions:
“The convenience of online transactions continues to impact the used car market. More buyers are opting for online platforms like Cars45, Carmart, and Jiji to browse, negotiate, and finalise deals.
“The global push for contactless transactions further accelerates this. Also, the rising internet penetration rate in Nigeria which was up to 55.4 percent January 2023, and urbanisation, are fostering an efficient ecosystem.
“This enables vehicle owners to connect with buyers across regions, streamlining online sales without physical visits.”
*Increasing Demand for Used Sedan Cars:
He explained, “Consumers currently favour sedan vehicles over SUVs and MPVs due to their more affordable pricing. As of June 2023, top-selling used sedan models included the Toyota Corolla, Toyota Camry, and Honda Accord. Japanese, South Korean, and European sedan cars were particularly popular among Nigerian consumers.
“According to Mordor Intelligence, the rising price of petrol in Nigeria is a key factor influencing the higher demand for used sedans. This is because these cars give better mileage than SUVs and MPVs, making them a popular choice.”
*Rise of Electric Vehicles, EVs:
Makarchuk stated: “With the global shift towards sustainability, Nigeria is not immune to the rising interest in electric
vehicles. The Director of the National Automotive Design and Development Council, NADDC, stated in a publication that by 2025, 30% of passenger cars driven in the country will be electric-powered.
“While the adoption of EVs in the new car market is still in its early stages, the global used car market is expected to witness a surge in the availability of pre-owned electric vehicles in 2024.”
*Emphasis on Vehicle Health and Condition:
He noted: “Buyers are becoming more discerning. They emphasise the importance of well-maintained vehicles when considering a purchase. On the other hand, sellers who invest in proper maintenance and provide detailed service records will likely have a competitive edge. “This is evident in a platform like ours, Cars45, where we’ve recorded sale of over 26,000 vehicles, and currently inspect about 1500 cars monthly, pan Nigeria. Consequently, customers who inspect their cars through Cars45 are able to sell them within 24hrs, through our network of buyers.” Makarchuk added.
