Passenger Cars - Nigeria | Statista Market Forecast

Revenue in the Passenger Cars market is projected to reach US$804.4m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.88%, resulting in a projected market volume of US$769.8m by 2029.
The market's largest segment is SUVs with a projected market volume of US$280.7m in 2024.
Passenger Cars market unit sales are expected to reach 20.52k vehicles in 2029.
The volume weighted average price of Passenger Cars market is expected to amount to US$38.92k in 2024.
With a vehicle unit sales share of 22.4% in 2024, Hyundai is expected to have one of the highest market share in the selected region.
The value market share of the make Lexus in the selected region is expected to stand at 24.6% in 2024.
From an international perspective it is shown that the most revenue will be generated United States (US$605bn in 2024).

The Mobility Market specifically covers newly sold passenger cars, including small, medium, executive, and luxury cars as well as SUVs, minivans, and sports cars. However, motorcycles, buses, trucks, large vans, and light utility vehicles are not included. The market's segmentation is based on several factors, including physical properties (weight, volume, wheelbase) and economic factors (pricing, status, etc.). All key figures shown represent the sales of new cars in the basic configuration in the respective year. Used vehicles are not taken into account, nor is adapted equipment for the new cars sold. The prices and revenues shown as well as the distribution of connectivity, drive types, autonomy levels, and average CO2 emissions are accordingly based on the basic models. Importantly, our focus is solely on the market for newly sold cars, distinct from the broader category of registered cars.

The Passenger Cars market is divided into further markets for small cars, medium cars, executive cars, luxury cars, SUVs, minivans, and sports cars. Additionally, it delves into different car brands, offering a comprehensive view of the market.

Insights are centered on newly sold cars in standard configurations, excluding used vehicles and customizations. Reported statistics align with base vehicle configurations, ensuring a focused understanding of the dynamic passenger car market.

Newly Sold Passenger cars
Sports cars
SUVs
MPVs

Motorcycles, Buses and Trucks
Commercial Vans (included for the U.S. market only)
Pickup trucks (included for the U.S. market only)

The Passenger Cars market in Nigeria has been experiencing significant growth in recent years, driven by various customer preferences and trends in the market. Customer preferences in Nigeria have been shifting towards more fuel-efficient and affordable vehicles.

With rising fuel prices and a growing awareness of environmental issues, consumers are increasingly opting for cars that offer better fuel economy and lower emissions. This has led to a surge in demand for small and compact cars in the country. Additionally, customers in Nigeria also value vehicles that are reliable, durable, and easy to maintain due to the limited availability of service centers and spare parts in some areas.

Trends in the market indicate a growing demand for SUVs and crossovers in Nigeria. These vehicles offer a combination of comfort, versatility, and ruggedness, making them popular choices among consumers. The increasing urbanization and improving road infrastructure in the country have also contributed to the rising demand for SUVs, as they are well-suited for both city driving and off-road adventures.

Another trend in the Nigerian Passenger Cars market is the growing popularity of electric vehicles (EVs). While the adoption of EVs is still relatively low compared to traditional internal combustion engine vehicles, the government's efforts to promote clean energy and reduce carbon emissions are driving the demand for EVs. The availability of charging infrastructure and the introduction of incentives such as tax breaks and subsidies have also played a role in encouraging consumers to consider electric vehicles as a viable option.

Local special circumstances in Nigeria, such as the high importation costs and limited local manufacturing capabilities, have influenced the development of the Passenger Cars market. The importation costs, including taxes and duties, can significantly increase the price of vehicles, making them less affordable for many consumers. This has led to a preference for used cars, which are more affordable than brand new vehicles.

Additionally, the limited local manufacturing capabilities have resulted in a reliance on imported vehicles, further driving up the prices. Underlying macroeconomic factors, such as population growth, urbanization, and economic development, have also contributed to the growth of the Passenger Cars market in Nigeria. The country's growing population and increasing urbanization have created a larger consumer base with higher purchasing power.

As the economy continues to develop and incomes rise, more Nigerians are able to afford cars, leading to an increase in demand. In conclusion, the Passenger Cars market in Nigeria is developing in response to customer preferences for fuel-efficient and affordable vehicles, as well as trends such as the popularity of SUVs and the growing interest in electric vehicles. Local special circumstances, including high importation costs and limited local manufacturing capabilities, have also shaped the market.

Underlying macroeconomic factors, such as population growth and economic development, have further contributed to the growth of the market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.

Is the global automotive industry experiencing an economic downturn? High inflation rates and raw material price increases recorded throughout 2022 and 2023 have challenged the industry, impacting consumers’ purchasing power and manufacturers’ production costs and profits. However, while global automobile sales slowed in 2022 due to the impact of the automotive semiconductor shortage, the market has been growing since the pandemic, and is forecast to move closer to its pre-pandemic level in 2023.