By Theodore Opara

CHINESE automobiles have become the toasts of dealers of new vehicles in Nigeria, and this is creating stiff competition in the market.

Even as the market still accommodates a lot of brands from Japan, Korea, Europe, and the United States of America, a close look at the industry shows clearly that the Chinese brands are making a heavy impact on the Nigerian auto space.

Following the high volume of sales, some dealers have added more Chinese brands to their portfolio; some have had to drop old brands and opt for others they consider more profitable or with a larger range of models.

A recent report by BBC News declared boldly that “China has overtaken Japan in the first three months of 2023, with official figures showing that China exported 1.07 million vehicles within Q1 of 2023, a 58 per cent jump from Q1 2022, compared to Japan’s exports of 954,185 – a six per cent increase to their Q1 2022 figures.”

The prominent Chinese brands on the local market are MG by Stallion Motors; GAC by CIG Motors; Chery by PAN Nigeria; Geely and Changan; and others by Mikano. MG is being distributed locally by Stallion after snatching the brand from Coscharis Motors; the company had earlier lost the Changan franchise to Mikano Motors. CIG, led by Diana Chen, has made a lot of inroads with the GAC brand, as she has unveiled a lot of models, especially SUV models.

Mikano Motors has also been impactful since it launched into the market with the Geely brand. It was able to take the brand to a high pedestal in just about two to three years. However, Mikano Motors recently added another brand (aside from its other two brands), and that is the Changan brand.

Since Changan’s official introduction earlier in the year, the noise around the Geely brand seems to have died down. Mikano Motors has hardly said anything about the Geely brand in recent times.

JAC is another Chinese brand that has also been able to grab some market share due to its offerings. Aside from passenger cars, the Chinese brands are also showing a strong presence in the commercial segment (light, medium, and heavy duty) of the market.

Two major advantages the Chinese brands are enjoying in the market are pricing and improved offerings. Because of the bad economy and dwelling purchasing power, many are turning to Chinese brands.