Toyota Nigeria Limited targets 24 % local market share in 2017 * Company to focus on after sales service

With about 22 per cent market share garnered already in the third quarter, Toyota Nigeria Limited (TNL) hopes to bring it up to 24 per cent of the total brand new car sales in the country at the end of 2017 business year.

Managing Director of TNL, Mr. Kunle Ade-Ojo ,who gave the figures at the company’s quarterly press review held at their headquarters in Lagos recently, also stated that at the third quarter of 2017, total sales of brand new vehicles was about 7,000 units compared to about 14, 500 units in 2016, which is a drop of 48 per cent in sales.

Ade-Ojo said, “As at the end of third quarter, our market share was about 22 per cent of the brand new vehicles sales but we are hoping to bring it to about 24 per cent at the end of the year. We are however, forecasting that it would end at about 9,000 units of vehicles in the country”.

According to the MD, the number one selling model for Toyota is Hilux, which contributes about 60 to 70 per cent of their sales. He said in terms of figures, Toyota has sold about 1, 200 Hilux out of about 1, 9000 unit sales made by TNL.

Other models, identified by Ade-Ojo as top sellers after the Hilux, are the Toyota Hiace and Toyota Avensis.

He however, noted that in the past, transporters used to be vibrant when it comes to purchase of Hiace but seem to have changed to longer buses recently due to economic recession and the cost of acquiring the Hiace buses.

He also pointed out that “We are beginning to see changes, but we hope it comes next year. We are beginning to see improvements in the purchases of Hiace buses; and we hope it will be better next year”.

Ade-Ojo emphasized that after-sales services is an area Toyota Nigeria Limited is going to focus on, adding that they will work with transporters on how to manage and refurbish their fleet so that the vehicles can last longer.

On competition, Ade-Ojo said TNL is not perturbed, adding “In terms of competition, we are still ahead because our competitors are majorly Chinese. In the Pickup and bus segment, we still have the leadership as much as market is concerned”.

On Toyota Coaster buses, Ade-Ojo said “The Coaster bus has been officially introduced into the market. We have been selling it and it has been well received and it is the leader of 30-seater buses in the market”.

Giving hope and forecasting a better business deals in the upcoming year, he said “We are forecasting that the auto market will grow 5 per cent. I say this because of the easing that we are beginning to see. If you look at the ratio sales of vehicles; most sales were more of commercial vehicles. In 2018, we hope to see a bit of balancing with the recovery of passenger vehicles.

“This year, a lot of companies were very careful because of the economic recession. They buy vehicles that would help improve productivity of their businesses. As economy improves, so will there be balancing of sales across the models and vehicle segments.

“A more realistic growth next year will be experienced next year. However, there are risks. As 2018 budget is signed into law, we might begin to see some marginal activities in businesses. We are doing that there will be an improvement generally”, Ade-Ojo said.

The Toyota boss concurred that everybody is affected by the grey market due to the economic situation but stressed that in the case of Toyota Nigeria Limited, the impacts have been minimized since all products bought from Toyota have the right duties.

While commending the efforts put by the Nigerian Customs to check activities of grey marketers that bring vehicles illegally, Ade Ojo pointed out that some companies who have paid their duties diligently are sometimes unduly confronted by the Customs.

On the Nigerian Automotive Industry Development Plan Bill passed recently by the Nigerian Senate to guide the Nigeria Automotive Industry, Ade Ojo assured “we have been discussing and we are aware of that. It has been with them before it was passed.

“We are taking steps to ensure that there are minimal impact on our business and we are putting mechanisms in place to see that I is positive to us”.

Ade-Ojo also used the occasion to express his support for the reduction of tariffs in importation because costs of things are generally high.

“A reduction in tariff will help reduce the cost of vehicles which will in turn affect cost of transportation and even food. I am in support for the call for reduction of tariffs on importation”, he said.