Growing Competition for Chinese Car Brands in the Nigeria Car Market

Chinese cars are gradually growing in popularity in Nigeria, and with many dealers of new cars in Nigeria marketing these vehicles, it’s creating fierce competition in the market. 

Despite the domination of the Nigerian car market by car brands from Japan, Korea, Europe, and the United States of America, Chinese car brands like Changan, Geely and many others seem unafraid of their competitors, as they are willing to swim, with the goal of making a heavy impact on the Nigerian auto space.

Interestingly, These Chinese vehicles are already getting the attention of many Nigerians, as more dealers have begun adding more Chinese brands to their portfolio, while some have had to drop old brands and opt for models they consider more profitable or with a larger range of models.

Recently, BBC News reported 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 Chinese car brands that are setting the pace in the Nigerian market are the likes of MG by Stallion Motors; GAC by CIG Motors; Chery by PAN Nigeria; Geely and Changan; and others by Mikano. Brands like MG are locally distributed by Stallion after taking them away from Coscharis Motors, who also lost the Changan franchise to Mikano Motors. Another firm, CIG, led by Diana Chen, locally distributes the GAC brand, as she has unveiled a lot of models, especially SUV models.

Fortunately, Mikano Motors has recorded a lot of success since they launched the Geely car brand within the space of 2-3 years in the market. However, only recently, Mikano Motors added another brand, the Changan brand, making it three Chinese car brands the automobile firm represents in Nigeria.

Since the introduction of Changan brand into the Nigerian market through Mikano Motors, the brand has drawn a lot of wave, leading to the died down of the wave surrounding Geely car brand. While Mikano Motors also represents Geely in Nigeria, the buzz surrounding Geely has drastically reduced since the start of 2023.

Another Chinese car brand with huge presence in Nigeria is JAC. Aside from passenger cars, Chinese brands are also showing a strong presence in the commercial segment (light, medium, and heavy-duty) of the market.

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It’s too early to claim that Chinese vehicles will soon take over the dominance Japanese or Korean vehicles have in Nigeria. However, major reasons Chinese brands are becoming popular and profitable for dealers in the market is due to their low pricing and improved offerings. As such, ecause of the bad economy and dwelling purchasing power, many are turning to Chinese brands.