With recent trends in technology, disrupting major sectors across the globe, the auto industry is also experiencing change spurred by disruptive technology.
From electric cars to driverless cars, not to mention the rise of transport sharing companies such as Uber, Bolt, Jekalo among many others. The reality of Nigeria becoming a dominant automotive hub is becoming a reality.
With research published by PricewaterhouseCoopers, Africa’s Next Automotive Hub
“This trend could potentially fast -track Nigeria’s path to becoming an automotive hub potentially boosting sales of new and used vehicles as individuals take advantage of partnering with these companies to gain extra income”.
With the automobile industry undergoing a positive disruption, a result, presents a scaling opportunity for car dealers and retailers, as the privilege of these tech companies can see them partnering together with private entities.
Speaking regarding the possibilities, Car dealer and Founder of Big-T Autos, Mr Abel Edeh agrees with the prospects of growth and healthy competition within the automotive retail sector in Nigeria.
In a recent interview he says “A fine margin for growth is assured with the implementation of technology, and with more tech-transport companies deciding to set up their businesses here, they allow the chance for partnerships and collaborations”
He adds “The companies by nature will need to collaborate with existing players connected to the transport sector, from government entities to private entities, because it’ll prove difficult for these companies to scale alone, and interestingly many of the private entities that could be involved will include automobile retailers”
When asked about how automobile retailers could contribute to helping transport-tech companies, Mr Abel says, “As a piece of these companies is handled by their technology, the other piece is the cars themselves which will need to meet up with given standards. Most car retailers are equally importer of new or used vehicles (sometimes both) and they’ll play a significant role in boosting the capabilities of these companies. This in itself is a huge game-changer for everyone involved”.
In the face of inflation caused by the COVID-19 pandemic, coupled with the depreciation of the Naira, individuals with fixed earnings have experienced a fall in disposable income, which could potentially affect their interests in automobiles, yet many individuals with a rather dynamic means of income are still poised to largely contributing to the automotive retail sector.