Individual Automotive Markets White Paper 2024

Individual Markets
White Paper 2024

INDONESIA | RUSSIA | USA | MEXICO
| JAPAN | NIGERIA
John Paul Dumas II PhD, CFA
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INDONESIAN AUTOMOTIVE
White Paper 2024
John Paul Dumas II
Introduction
The Indonesian automotive market is rapidly evolving, driven by changing
consumer preferences, advancements in technology, and government policies
aimed at promoting sustainable mobility. This white paper provides a
comprehensive analysis of the market, focusing on electric vehicles (EVs),
oil-based cars, used cars, government policies, pricing, major brands, hurdles,
infrastructure, and growth opportunities.
Electric Vehicles (EVs)

Electric vehicles are gaining significant traction in Indonesia due to their eco-friendly nature and lower
operating costs. The Indonesian government has set ambitious targets for EV adoption, aiming to have 2.1
million EVs on the road by 2025. Key factors driving the growth of EVs in Indonesia include:
● Government incentives: The government has introduced various incentives to promote EV

adoption, including tax exemptions, import duty reductions, and subsidies for the development of
EV infrastructure.
● Increasing consumer awareness: Rising concerns about air pollution and climate change are
leading to greater consumer interest in eco-friendly transportation options.
● Technological advancements: Improvements in battery technology have led to longer driving
ranges and shorter charging times, making EVs more practical for daily use.
Despite these positive factors, the growth of EVs in Indonesia faces several challenges, including:
● Limited charging infrastructure: The lack of a comprehensive charging network hinders the
widespread adoption of EVs.
● High upfront costs: Despite government incentives, EVs remain more expensive than their
oil-based counterparts, limiting their affordability for many consumers.
● Limited product offerings: The range of available EV models is still relatively narrow, restricting
consumer choice.
Oil-Based Cars
Although the market share of oil-based cars is expected
to decline in the coming years, they will continue to
dominate the Indonesian automotive landscape for the
foreseeable future. Key factors influencing the demand
for oil-based cars include:
● Affordability: Oil-based cars remain more

affordable than EVs, making them the preferred
choice for many Indonesian consumers.
● Greater product variety: A wider range of The used car market
oil-based car models is available, catering to in Indonesia is
diverse consumer preferences and budgets. growing rapidly,
● Established infrastructure: A well-developed driven by increasing
network of petrol stations ensures easy access to
car ownership rates
fuel for oil-based car owners.
3. Used Cars
and the affordability
of pre-owned
The used car market in Indonesia is growing rapidly, vehicles. Key factors
driven by increasing car ownership rates and the contributing to the
affordability of pre-owned vehicles. Key factors growth of the used
contributing to the growth of the used car market
car market
include:
● Rising demand: As more consumers enter the

vehicle market, the demand for affordable used
cars increases.
● Economic factors: Economic uncertainties and
rising living costs make used cars an attractive
option for budget-conscious consumers.
● Greater availability: The growing number of used
car dealerships and online marketplaces makes it
easier for consumers to find and purchase
pre-owned vehicles.
Government
Policies Pricing
The Indonesian government plays a crucial The pricing of vehicles in the
role in shaping the automotive market Indonesian market is influenced by
through various policies and regulations. various factors, including production
Key government initiatives include: costs, import tariffs, taxes, and local
market conditions. Key pricing trends
● Promotion of EV adoption: The in the Indonesian automotive market
government has set ambitious include:
targets for EV adoption and
● Growing affordability: The
introduced various incentives to introduction of more affordable
encourage consumers to switch to vehicle models has made car
electric vehicles. ownership more accessible to a
● Emphasis on local production: The wider range of consumers.
government encourages local ● Impact of government policies:
automotive production through Government policies such as
import tariffs and luxury goods
policies such as the Luxury Goods
taxes can significantly impact
Sales Tax (PPnBM) and the Import vehicle pricing.
Tariff on Completely Built-Up (CBU) ● Market competition: Intense
vehicles. competition among automotive
● Fuel efficiency standards: The brands drives innovation and
government has introduced fuel pricing strategies to attract
consumers.
efficiency standards for new
vehicles to reduce emissions and
promote the adoption of more
environmentally friendly vehicles.
Major Brands
The Indonesian automotive market is dominated by a few major players, including Toyota,
Daihatsu, Honda, Mitsubishi, and Suzuki. These brands have established strong market positions
through a combination of competitive pricing, diverse product offerings, and strong brand
recognition. Key factors contributing to their success include:
● Local production: Many of these brands have established local production facilities,
allowing them to benefit from lower production costs and government incentives.
● Strong brand recognition: These brands have built a reputation for reliability and quality,
making them popular choices among Indonesian consumers.
● Diverse product range: These brands offer a wide range of vehicle models, catering to
diverse consumer preferences and budgets.
Limited infrastructure: The lack of a comprehensive charging

network for EVs and inadequate road infrastructure pose
significant challenges for the automotive industry.
Hurdles
The Indonesian automotive market faces several hurdles that could hinder its growth and
development. Key challenges include:
● Limited infrastructure: The lack of a comprehensive charging network for EVs and
inadequate road infrastructure pose significant challenges for the automotive industry.
● Economic uncertainties: Economic fluctuations and rising living costs could impact
consumer purchasing power and demand for vehicles.
● Intense competition: The highly competitive nature of the automotive market makes it
challenging for new entrants to establish a foothold and for existing players to maintain
market share.
●
Infrastructure
The development of a robust automotive infrastructure is crucial for the growth of the
Indonesian automotive market. Key areas of focus include:
● Charging infrastructure: The expansion of EV charging stations is essential to support

the growing demand for electric vehicles.
● Road infrastructure: Improvements to road networks and transportation systems are
necessary to accommodate increasing vehicle ownership rates and promote efficient
mobility.
● Public transportation: Investment in public transportation systems can help reduce traffic
congestion and promote sustainable mobility.
Despite the challenges, the Indonesian automotive market

presents several growth opportunities for industry players
Growth Opportunities
Despite the challenges, the Indonesian automotive market presents several growth opportunities for
industry players. Key areas of opportunity include:
● Electric vehicle market: The growing demand for EVs presents significant growth potential for
manufacturers and suppliers of electric vehicles and related technologies.
● Affordable vehicle segment: The increasing affordability of vehicles has opened up new
market segments, providing opportunities for manufacturers to develop and market
budget-friendly vehicle models.
● Automotive aftermarket: The growing vehicle parc in Indonesia presents opportunities for
businesses involved in automotive repair, maintenance, and spare parts.
Conclusion
The Indonesian automotive market is experiencing significant transformations driven by
changing consumer preferences, advancements in technology, and government policies
promoting sustainable mobility. This white paper offers a comprehensive analysis of the market,
focusing on electric vehicles (EVs), oil-based cars, used cars, government policies, pricing, major
brands, hurdles, infrastructure, and growth opportunities. The market is anticipated to witness
growth in electric vehicles, used cars, and affordable vehicles, while confronting challenges
related to infrastructure, economic uncertainties, and intense competition. Opportunities for
growth can be found in the EV market, affordable vehicle segments, and the automotive
aftermarket. The Indonesian government has set ambitious targets for EV adoption, aiming to
have 2.1 million EVs on the road by 2025, and is offering various incentives such as tax
exemptions, import duty reductions, and subsidies for EV infrastructure development to
encourage this transition. However, the growth of EVs in Indonesia faces challenges such as
limited charging infrastructure, high upfront costs, and a limited range of available models.
Oil-based cars will continue to dominate the Indonesian automotive landscape for the
foreseeable future, with affordability, greater product variety, and established infrastructure
driving their demand. The used car market in Indonesia is also growing rapidly, driven by
increasing car ownership rates and the affordability of pre-owned vehicles. The government
plays a crucial role in shaping the automotive market through various policies and regulations,
including the promotion of EV adoption, emphasis on local production, and fuel efficiency
standards. Key players in the Indonesian automotive market include Toyota, Daihatsu, Honda,
Mitsubishi, and Suzuki, who have established strong market positions through competitive
pricing, diverse product offerings, and strong brand recognition. The development of a robust
automotive infrastructure, including EV charging stations, road infrastructure improvements, and
public transportation investments, is crucial for the growth of the Indonesian automotive market.
Despite the challenges, the Indonesian automotive market presents several growth
opportunities for industry players, including the electric vehicle market, affordable vehicle
segments, and the automotive aftermarket
Key statistics 5. Pricing
● According to GAIKINDO, the average
1. Electric Vehicles (EVs) price of a new car in Indonesia in 2020
● According to the Indonesian was $15,000, up from $14,500 in the
Automotive Industry Association
previous year.
(GAIKINDO), EV sales in Indonesia
reached 1,000 units in 2020, ● The average price of a used car in
accounting for 0.1% of total new Indonesia in 2020 was $4,500, up from
vehicle sales. $4,000 in the previous year.
● The Indonesian government has set 6. Major Brands
a target for 20% of all new vehicle
sales in Indonesia to be electric by ● Toyota is the largest automotive
2030. manufacturer in Indonesia, with a market
● In 2021, the Indonesian government Despite the
share of 30.0% in 2020.
announced a plan to invest $1 ● challenges, the
Mitsubishi is the second-largest
billion in the development of EV
automotive manufacturer in Indonesia,
infrastructure and technologies. Japanese
with a market share of 20.0% in 2020.
2. Oil-Based Cars
● According to GAIKINDO, oil-based 7. Hurdles automotive
car sales in Indonesia reached 1.0
million units in 2020, accounting for
● market presents
According to the International Energy
Agency (IEA), there are only 500 public EV
99.9% of total new vehicle sales. several growth
charging stations in Indonesia, compared
● The average fuel efficiency of new
cars sold in Indonesia in 2019 was opportunities for
to 15,000 petrol stations.
10.5 km/L, up from 9.5 km/L in 2010. ● According to the World Bank, public
3. Used Cars
industry players,
transportation accounts for only 10% of all
● According to the Indonesian including:
passenger transport in Indonesia.
Automotive Institute (IAI), used car
sales in Indonesia reached 2.5 8. Infrastructure
million units in 2020, up 4.0% from ● According to the Ministry of Public Works
the previous year. and Housing, there are 500,000 km of
● The average price of a used car in roads in Indonesia, with 60% of them
Indonesia in 2020 was $4,500, up
from $4,000 in the previous year. paved.
4. Government Policies ● According to the Indonesian Oil and Gas
● The Indonesian government offers Association (Migas), there are 15,000
tax incentives of up to $2,500 for petrol stations in Indonesia, with 99% of
the purchase of electric vehicles.
them offering regular unleaded petrol and
● The government has set fuel
efficiency standards for new 85% offering premium unleaded petrol.
vehicles, with the target of 9. Growth Opportunities
achieving an average fuel efficiency ● According to the IEA, the global EV
of 12 km/L by 2025. market is expected to grow at a
compound annual growth rate (CAGR) of
29% between 2020 and 2030.
● According to IAI, the used car market in
Indonesia is expected to continue
growing, with sales projected to reach 3.0
million units by 2025.
RUSSIA AUTOMOTIVE
White Paper 2024
John Paul Dumas II
Introduction
The automotive industry in Russia has been experiencing a significant
transformation in recent years, with electric vehicles (EVs) playing an
increasingly important role in the industry's growth. The Russian market for EVs
and new car purchases is expected to grow significantly in the next two years,
driven by several factors, including government policies, advancements in
technology, and changing consumer preferences. This market research white
paper aims to provide a comprehensive analysis of the Russian automotive EV
and new car purchasing forecast for the period 2024-2025, with a particular
focus on the impact of oil-based vehicles on the market.
Market Overview
The Russian automotive market has been experiencing significant growth in recent
years, with new car sales increasing by around 10% annually since 2019. However,
the market growth has been mainly driven by the sales of internal combustion
engine (ICE) vehicles, with EVs accounting for a relatively small share of the market.
In 2023, EVs accounted for approximately 2% of new car sales in Russia, compared
to around 10% in Europe and 20% in China. The Russian automotive industry is
dominated by domestic manufacturers, such as AvtoVAZ, GAZ, and UAZ, which
together account for around 60% of the market share. Foreign manufacturers,
including Renault-Nissan-Mitsubishi Alliance, Volkswagen Group, and Toyota, also
have a significant presence in the market, with a combined market share of around
30%.
Government Policies and
Incentives
The Russian government has been actively promoting the adoption of
EVs in the country through various policies and incentives. In 2020, the
government introduced a comprehensive strategy for the development
of the electric vehicle market, which aims to increase the share of EVs in
new car sales to 15% by 2030.
Some of the key government policies and incentives for the promotion
of EVs in Russia include:
● Reduced import duties: The government has reduced import The government has
duties on EVs to encourage the import of electric vehicles and reduced import
components. This has led to a reduction in the overall cost of
EVs, making them more affordable for consumers.
duties on EVs to
● Subsidies for EV purchases: The government offers subsidies encourage the
to consumers for the purchase of electric vehicles, which can import of electric
cover up to 25% of the vehicle's cost. This has significantly
reduced the cost of EVs for consumers and has helped to vehicles and
increase demand for electric vehicles. components. This
● Tax exemptions: EV owners are exempt from paying several
taxes, including the transport tax, which can be a significant
has led to a
cost for ICE vehicle owners. reduction in the
● Charging infrastructure development: The government is overall cost of EVs,
investing heavily in the development of charging infrastructure
across the country, with plans to install around 15,000 charging making them more
stations by 2030. This will help to address one of the main affordable for
concerns of potential EV buyers - the availability of charging
infrastructure.
consumers.
3. Advancements in Technology
Advancements in technology have played a crucial role in the growth of

the Russian EV market. Over the past few years, there have been
significant improvements in battery technology, charging infrastructure,
and the overall performance of electric vehicles. These advancements
have helped to address some of the main concerns of potential EV
buyers, such as range anxiety and charging time.
Some of the key technological advancements in the Russian EV market

include:
● Improved battery technology: The development of lithium-ion

batteries with higher energy density has led to an increase in
the range of electric vehicles. This has addressed one of the
main concerns of potential EV buyers - the limited range of
electric vehicles.
● Faster charging times: The development of fast charging
technology has significantly reduced the charging time for
electric vehicles, making them more convenient for consumers.
● Enhanced performance: Electric vehicles have been
undergoing continuous improvements in terms of performance,
with many models now offering comparable or even superior
performance to their ICE counterparts.
Advancements Changing Consumer
in Technology Preferences
Advancements in technology have played Consumer preferences in Russia have been
a crucial role in the growth of the Russian shifting towards more sustainable and
EV market. Over the past few years, there environmentally friendly products, including
electric vehicles. This has been driven by several
have been significant improvements in
factors, such as increasing awareness of
battery technology, charging infrastructure, environmental issues, concerns about air pollution,
and the overall performance of electric and the desire for more cost-effective and efficient
vehicles. These advancements have transportation options.
helped to address some of the main
concerns of potential EV buyers, such as Some of the key factors driving the shift in
range anxiety and charging time. consumer preferences towards EVs in Russia
include:
Some of the key technological
● Environmental concerns: There is a growing
advancements in the Russian EV market awareness of the negative environmental
include: impact of ICE vehicles, with many
consumers now considering the
● Improved battery technology: The environmental impact of their purchases.
development of lithium-ion batteries ● Cost savings: Electric vehicles offer
with higher energy density has led significant cost savings compared to ICE
to an increase in the range of vehicles, with lower fuel costs and reduced
electric vehicles. This has maintenance expenses. This has made EVs
addressed one of the main an attractive option for cost-conscious
concerns of potential EV buyers - consumers.
● Technological advancements: The
the limited range of electric
continuous improvements in the
vehicles. performance and capabilities of electric
● Faster charging times: The vehicles have made them an increasingly
development of fast charging attractive option for consumers who are
technology has significantly interested in the latest technology.
reduced the charging time for
electric vehicles, making them more
convenient for consumers.
● Enhanced performance: Electric
vehicles have been undergoing
continuous improvements in terms
of performance, with many models
now offering comparable or even
superior performance to their ICE
counterparts.
Impact of Oil-Based Vehicles on the
Market
The Russian automotive market has historically been dominated by oil-based vehicles, with the
country being one of the world's largest oil producers. However, the growing popularity of electric
vehicles and the increasing awareness of the negative environmental impact of oil-based
vehicles are expected to have a significant impact on the market in the coming years.
For the development of the electric vehicle market is expected to have a significant impact on
the adoption of EVs in the country. The government's target of increasing the share of EVs in new
car sales to 15% by 2030 is expected to drive significant growth in the market, with the
government's policies and incentives playing a crucial role in promoting the adoption of EVs.
The government's target of increasing the share of EVs in

new car sales to 15% by 2030 is expected to drive
significant growth in the market.
● Technological advancements: The continuous improvements in the performance and capabilities of

electric vehicles are expected to make them an increasingly attractive option for consumers, particularly as
the cost of ownership continues to fall. The development of fast charging technology and improvements in
battery technology are expected to address some of the main concerns of potential EV buyers, such as
range anxiety and charging time.
● Changing consumer preferences: The growing awareness of environmental issues and the increasing
popularity of sustainable and environmentally friendly products are expected to drive demand for electric
vehicles in Russia. As consumers become more aware of the negative environmental impact of oil-based
vehicles, the demand for electric vehicles is expected to increase significantly.
● Economic factors: The cost savings associated with electric vehicles, such as lower fuel costs and reduced
maintenance expenses, are expected to make them an increasingly attractive option for cost-conscious
consumers. As the cost of ownership for electric vehicles continues to fall, the demand for these vehicles
is expected to grow.
Market Forecast
The Russian automotive EV and new car purchasing market is expected to grow significantly in
the next two years, driven by the factors outlined above. The market is expected to grow at a
compound annual growth rate (CAGR) of around 20% between 2024 and 2025, with the share
of EVs in new car sales expected to increase from 2% in 2023 to around 5% by 2025.
The growth of the market is expected to be driven by several factors, including the
government's policies and incentives for the promotion of electric vehicles, advancements in
technology, and changing consumer preferences. The government's target of increasing the
share of EVs in new car sales to 15% by 2030 is expected to drive significant growth in the
market, with the government's policies and incentives playing a crucial role in promoting the
adoption of EVs.
The impact of oil-based vehicles on the market is expected to be

significant, with the growing popularity of electric vehicles and the
increasing awareness of the negative environmental impact of
oil-based vehicles expected to drive significant growth in the market.
The impact of oil-based vehicles on the market is expected to be significant, with the growing
popularity of electric vehicles and the increasing awareness of the negative environmental impact of
oil-based vehicles expected to drive significant growth in the market. As consumers become more
aware of the negative environmental impact of oil-based vehicles, the demand for electric vehicles is
expected to increase significantly.
Conclusion
The Russian automotive EV and new car purchasing market is poised for
significant growth in the next two years, driven by several factors, including
government policies and incentives, advancements in technology, and changing
consumer preferences. The share of EVs in new car sales is expected to
increase from 2% in 2023 to around 5% by 2025, driven by the government's
target of increasing the share of EVs in new car sales to 15% by 2030.
The impact of oil-based vehicles on the market is expected to be significant,

with the growing popularity of electric vehicles and the increasing awareness of
the negative environmental impact of oil-based vehicles expected to drive
significant growth in the market. As consumers become more aware of the
negative environmental impact of oil-based vehicles, the demand for electric
vehicles is expected to increase significantly.
Overall, the Russian automotive EV and new car purchasing market is expected
to experience significant growth in the coming years, driven by a combination of
government policies and incentives, advancements in technology, and changing
consumer preferences.
1. Electric Vehicles (EVs) ● According to the AEB, the average price

● According to the Association of of a new car in Russia in 2020 was
European Businesses (AEB), EV $20,000, up from $19,000 in the previous
sales in Russia reached 500 units in year.
2020, accounting for 0.04% of total ● The average price of a used car in Russia
new vehicle sales. in 2020 was $6,000, up from $5,500 in
● The Russian government has set a the previous year.
target for 10% of all new vehicle 6. Major Brands
sales in Russia to be electric by
● AvtoVAZ is the largest automotive
2030.
● In 2021, the Russian government
Despite the
manufacturer in Russia, with a market
announced a plan to invest $2 challenges, the
share of 20.0% in 2020.
billion in the development of EV ● Renault is the second-largest automotive
infrastructure and technologies.
Japanese
manufacturer in Russia, with a market
2. Oil-Based Cars automotive
share of 15.0% in 2020.
● According to the AEB, oil-based car 7. Hurdles
sales in Russia reached 1.6 million ●
market presents
units in 2020, accounting for several growth
Agency (IEA), there are only 2,000 public
99.96% of total new vehicle sales.
● The average fuel efficiency of new opportunities for
EV charging stations in Russia, compared
cars sold in Russia in 2019 was 12.5
●
industry players,
According to the World Bank, public
km/L, up from 11.5 km/L in 2010.
3. Used Cars including:
● According to the Russian passenger transport in Russia.
Automotive Market Research (AMR), 8. Infrastructure
used car sales in Russia reached ● According to the Federal Road Agency
5.0 million units in 2020, up 2.0% (Rosavtodor), there are 1.5 million km of
from the previous year. roads in Russia, with 80% of them paved.
● The average price of a used car in ● According to the Russian Fuel Union,
Russia in 2020 was $6,000, up
there are 40,000 petrol stations in Russia,
from $5,500 in the previous year.
with 99% of them offering regular
4. Government Policies
● The Russian government offers tax unleaded petrol and 85% offering
incentives of up to $3,000 for the premium unleaded petrol.
purchase of electric vehicles. 9. Growth Opportunities
● The government has set fuel ● According to the IEA, the global EV
efficiency standards for new market is expected to grow at a
vehicles, with the target of compound annual growth rate (CAGR) of
achieving an average fuel efficiency 29% between 2020 and 2030.
of 15 km/L by 2025.
● According to AMR, the used car market in
Russia is expected to continue growing,
with sales projected to reach 5.5 million
units by 2025.
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United States AUTOMOTIVE
White Paper 2024
John Paul Dumas II
Introduction
The United States automotive market is one of the largest and most influential
markets globally, with significant impacts on the global automotive industry. This
white paper provides a comprehensive analysis of the market, focusing on
electric vehicles (EVs), oil-based cars, used cars, government policies, pricing,
major brands, hurdles, infrastructure, and growth opportunities.

Electric vehicles are gaining significant traction in the United States due to their eco-friendly nature and
lower operating costs. The U.S. government has set ambitious targets for EV adoption, aiming to have
50% of all new vehicle sales be electric by 2030. Key factors driving the growth of EVs in the United
States include:

adoption, including tax credits, grants, and subsidies for the development of EV infrastructure.
Despite these positive factors, the growth of EVs in the United States faces several challenges, including:
consumer choice.
Oil-Based Cars
Although the market share of oil-based cars is
expected to decline in the coming years, they will
continue to dominate the United States automotive
landscape for the foreseeable future. Key factors
driving the demand for oil-based cars in the United
States include:
● Affordability: Oil-based cars generally offer a

more affordable entry point for consumers
compared to EVs. Although the
● Greater product variety: The range of market share of
available oil-based car models is oil-based cars is
significantly broader than that of EVs, expected to
offering consumers more choice. decline in the
● Established infrastructure: The coming years,
well-developed network of petrol stations they will continue
and automotive service centres makes to dominate the
oil-based cars more convenient for daily US automotive
use. landscape for the
foreseeable
future
Used Cars Government
Policies
The used car market in the United States is The U.S. government plays a crucial
growing rapidly, driven by increasing car role in shaping the automotive market
ownership rates and the affordability of through various policies and
pre-owned vehicles. Key factors driving regulations, including:
the growth of the used car market in the
● Promotion of EV adoption: The
United States include:
government has set ambitious
● Affordability: Used cars offer a more targets for EV adoption and is
affordable entry point for
offering various incentives to
encourage this transition.
consumers compared to new
● Emphasis on fuel efficiency:
vehicles, both oil-based and
The government has
electric.
introduced fuel efficiency
● Increasing car ownership rates: As standards for new vehicles in
more Americans enter the middle an effort to reduce emissions
class, demand for affordable and promote the adoption of
personal transportation options is more eco-friendly
expected to rise. transportation options.
● Informal market: The presence of a ● Tax incentives: The government
large informal used car market in offers tax credits and other
the United States provides incentives for the purchase of
consumers with a wide range of electric vehicles, making them
options and competitive pricing. more affordable for consumers.
Pricing
Pricing is a critical factor in the United States automotive market, with affordability being a key
determinant of consumer demand. Key factors influencing pricing in the United States automotive
market include:
● Import tariffs: High import tariffs on new vehicles make locally assembled vehicles more
competitive in terms of pricing.
● Competition: Intense competition among automotive manufacturers and dealerships drives
down prices, particularly in the used car market.
● Financing options: The availability of financing options, such as low-interest loans and
leasing programs, can make vehicle purchases more affordable for consumers.
Pricing is a critical factor in the United States automotive

market, with affordability being a key determinant of consumer
demand. Key factors influencing pricing in the United States
automotive market include:
Major Brands
The United States automotive market is dominated by several major brands, including Ford,
Chevrolet, Toyota, Honda, and Tesla. These brands have established strong market positions
through competitive pricing, diverse product offerings, and strong brand recognition. Key factors
driving the success of these brands in the United States include:
● Affordable pricing: These brands offer a wide range of affordable vehicles, catering to the
budget-conscious American consumer.
● Diverse product offerings: The availability of a wide range of vehicle types, from small cars
to SUVs, allows these brands to cater to a diverse consumer base.
● Strong brand recognition: These brands have built strong brand recognition in the United
States, which translates into consumer trust and loyalty.
Hurdles
The United States automotive market faces several hurdles that could hinder its growth,
including:
● Limited infrastructure: The lack of a comprehensive road network and limited public
transportation options make personal vehicle ownership essential for many Americans,
driving demand for affordable vehicles.
● Economic uncertainties: The U.S. economy is subject to fluctuations in oil prices and
other global economic factors, which can impact consumer purchasing power and
demand for vehicles.
● Intense competition: The presence of numerous automotive manufacturers and
dealerships in the United States creates a highly competitive market, which can drive
down profit margins and make it difficult for new players to enter the market.
Intense competition: The presence of numerous

automotive manufacturers and dealerships in the United
States creates a highly competitive market, which can
drive down profit margins and make it difficult for new
players to enter the market.
Infrastructure
The development of a robust automotive infrastructure is essential for the growth of the United
States automotive market. Key components of this infrastructure include:
● Road infrastructure: The expansion and improvement of the road network in the United States
will be crucial for the growth of the automotive market, particularly in rural areas.
● Public transportation: The development of efficient and affordable public transportation
options will help to reduce congestion and improve overall mobility in the United States.
● EV charging infrastructure: The establishment of a comprehensive network of EV charging
stations is essential for the widespread adoption of electric vehicles in the United States.
Despite the challenges, the United States
automotive market presents several growth
opportunities for industry players, including:
● Electric vehicle market: The growing

demand for eco-friendly transportation
options and government incentives for EV
adoption create significant growth potential
for the EV market in the United States.
● Affordable vehicle segments: The increasing Despite the
demand for affordable personal
transportation options presents
challenges, the
opportunities for automotive manufacturers US automotive
and dealerships to expand their offerings in market presents
this segment.
several growth
● Automotive aftermarket: The growing
number of vehicles on American roads opportunities for
creates opportunities for businesses industry players,
specializing in automotive parts, including:
maintenance, and repair services.
Conclusion
The United States automotive market is poised for significant

growth in the coming years, driven by changing consumer
preferences, advancements in technology, and government policies
promoting sustainable mobility. Key factors driving this growth
include the increasing demand for electric vehicles, the affordability
of used cars, and the presence of major automotive brands offering
a wide range of affordable vehicles. However, the market faces
several challenges, including limited infrastructure, economic
uncertainties, and intense competition. Opportunities for growth lie
in the EV market, affordable vehicle segments, and the automotive
aftermarket, making the United States automotive market an
attractive prospect for industry players.
● According to NADA, the average price of
1. Electric Vehicles (EVs)
a new car in the US in 2020 was $37,000,
● According to the US Department of
Energy, EV sales in the US reached up from $36,000 in the previous year.
295,000 units in 2020, accounting ● The average price of a used car in the US
for 2.4% of total new vehicle sales. in 2020 was $19,000, up from $18,500 in
● The Biden administration has set a the previous year.
target for 50% of all new vehicle 6. Major Brands
sales in the US to be electric by ● Ford is the largest automotive
2030. manufacturer in the US, with a market
● In 2021, the US government share of 14.5% in 2020.
announced a plan to invest $15
●
Despite the
Toyota is the second-largest automotive
billion in the development of EV
challenges, the
manufacturer in the US, with a market
share of 14.3% in 2020.
2. Oil-Based Cars
7. Hurdles
Japanese
● According to the National
Automobile Dealers Association ● automotive
According to the US Department of
(NADA), oil-based car sales in the market presents
Energy, there are only 43,000 public EV
US reached 14.5 million units in charging stations in the US, compared to
2020, accounting for 97.6% of total several growth
145,000 petrol stations.
new vehicle sales. ● opportunities for
According to the American Public
● The average fuel efficiency of new Transportation Association, public
cars sold in the US in 2019 was industry players,
25.4 miles per gallon (mpg), up including:
from 23.6 mpg in 2010.
passenger transport in the US.
3. Used Cars 8. Infrastructure
● According to NADA, used car sales ● According to the Federal Highway
in the US reached 40.0 million units Administration, there are 4.1 million miles
in 2020, up 2.0% from the previous of roads in the US, with 97% of them
year. paved.
● The average price of a used car in ● According to the National Association of
the US in 2020 was $19,000, up Convenience Stores, there are 145,000
petrol stations in the US, with 99% of them
offering regular unleaded petrol and 85%
● The US government offers tax
incentives of up to $7,500 for the offering premium unleaded petrol.
● The government has set fuel ● According to the International Energy
efficiency standards for new Agency (IEA), the global EV market is
vehicles, with the target of expected to grow at a compound annual
achieving an average fuel efficiency growth rate (CAGR) of 29% between 2020
of 50 mpg by 2025. and 2030.
● According to NADA, the used car market
in the US is expected to continue growing,
with sales projected to reach 43 million
units by 2025.
MEXICO AUTOMOTIVE
White Paper 2024
John Paul Dumas II
Introduction
The Mexican automotive market is one of the largest and most dynamic markets
in Latin America, with significant impacts on the global automotive industry. This

Electric vehicles are gaining significant traction in Mexico due to their eco-friendly nature and lower
operating costs. The Mexican government has set ambitious targets for EV adoption, aiming to have 50%
of all new vehicle sales be electric by 2030. Key factors driving the growth of EVs in Mexico include:

Despite these positive factors, the growth of EVs in Mexico faces several challenges, including:
consumer choice.
Oil-Based Cars
continue to dominate the Mexican automotive
driving the demand for oil-based cars in Mexico
include:

significantly broader than that of EVs, expected to decline
offering consumers more choice. in the coming
● Established infrastructure: The
years, they will
well-developed network of petrol stations
and automotive service centres makes
continue to
oil-based cars more convenient for daily
dominate the
use. Mexico’s
automotive
landscape for the
foreseeable future
Policies
The used car market in Mexico is growing The Mexican government plays a
rapidly, driven by increasing car ownership crucial role in shaping the automotive
rates and the affordability of pre-owned market through various policies and
vehicles. Key factors driving the growth of regulations, including:
the used car market in Mexico include:
● Affordability: Used cars offer a more government has set ambitious
affordable entry point for targets for EV adoption and is
● Emphasis on fuel efficiency:
electric.
The government has
● Increasing car ownership rates: As
introduced fuel efficiency
more Mexicans enter the middle standards for new vehicles in
class, demand for affordable an effort to reduce emissions
personal transportation options is and promote the adoption of
expected to rise. more eco-friendly
● Informal market: The presence of a transportation options.
large informal used car market in ● Tax incentives: The government
Mexico provides consumers with a offers tax credits and other
wide range of options and incentives for the purchase of
competitive pricing. electric vehicles, making them
more affordable for consumers.
Pricing
Pricing is a critical factor in the Mexican automotive market, with affordability being a key
determinant of consumer demand. Key factors influencing pricing in the Mexican automotive
market include:
Pricing is a critical factor in the United States automotive

market, with affordability being a key determinant of
consumer demand
Major Brands
The Mexican automotive market is dominated by several major brands, including Nissan, General
Motors, Volkswagen, Ford, and Toyota. These brands have established strong market positions
through competitive pricing, diverse product offerings, and strong brand recognition. Key factors
driving the success of these brands in Mexico include:
budget-conscious Mexican consumer.
● Strong brand recognition: These brands have built strong brand recognition in Mexico,
which translates into consumer trust and loyalty.
Hurdles
The Mexican automotive market faces several hurdles that could hinder its growth,
including:
● Limited infrastructure: The lack of a comprehensive road network and limited

public transportation options make personal vehicle ownership essential for
many Mexicans, driving demand for affordable vehicles.
● Economic uncertainties: The Mexican economy is subject to fluctuations in oil
prices and other global economic factors, which can impact consumer
purchasing power and demand for vehicles.
dealerships in Mexico creates a highly competitive market, which can drive down
profit margins and make it difficult for new players to enter the market.
The Mexican economy is subject to fluctuations in oil

prices and other global economic factors, which can
impact consumer purchasing power and demand for
vehicles.
Infrastructure
The development of a robust automotive infrastructure is essential for the growth of the Mexican
automotive market. Key components of this infrastructure include:
● Road infrastructure: The expansion and improvement of the road network in Mexico will be
crucial for the growth of the automotive market, particularly in rural areas.
options will help to reduce congestion and improve overall mobility in Mexico.
stations is essential for the widespread adoption of electric vehicles in Mexico.
Despite the challenges, the Mexican automotive
market presents several growth opportunities for
industry players, including:

for the EV market in Mexico.
● Affordable vehicle segments: The increasing Electric vehicle
demand for affordable personal market: The
transportation options presents growing demand
opportunities for automotive manufacturers for eco-friendly
and dealerships to expand their offerings in transportation
this segment. options and
● Automotive aftermarket: The growing government
number of vehicles on Mexican roads incentives for EV
creates opportunities for businesses
adoption create
specializing in automotive parts,
significant growth
potential for the EV
market in Mexico.
Conclusion
The Mexican automotive market is poised for significant growth in

the coming years, driven by changing consumer preferences,
advancements in technology, and government policies promoting
sustainable mobility. Key factors driving this growth include the
increasing demand for electric vehicles, the affordability of used
cars, and the presence of major automotive brands offering a wide
range of affordable vehicles. However, the market faces several
challenges, including limited infrastructure, economic uncertainties,
and intense competition. Opportunities for growth lie in the EV
market, affordable vehicle segments, and the automotive
aftermarket, making the Mexican automotive market an attractive
prospect for industry players.
● According to AMIA, the average price of a
new car in Mexico in 2020 was $15,000,
● According to the Mexican
Automotive Industry Association up from $14,500 in the previous year.
(AMIA), EV sales in Mexico reached ● The average price of a used car in Mexico
1,200 units in 2020, accounting for in 2020 was $7,000, up from $6,500 in
0.1% of total new vehicle sales. the previous year.
● The Mexican government has set a 6. Major Brands
target for 50% of all new vehicle ● Nissan is the largest automotive
sales in Mexico to be electric by manufacturer in Mexico, with a market
2050. share of 22.2% in 2020.
● In 2021, the Mexican government
●
Despite the
General Motors is the second-largest
million in the development of EV
challenges, the
automotive manufacturer in Mexico, with a
market share of 16.9% in 2020.
7. Hurdles
Japanese
2. Oil-Based Cars
● According to AMIA, oil-based car ● automotive
sales in Mexico reached 1.2 million market presents
Agency (IEA), there are only 2,000 public
units in 2020, accounting for 99.9% EV charging stations in Mexico, compared
of total new vehicle sales. several growth
● The average fuel efficiency of new ● opportunities for
cars sold in Mexico in 2019 was 11.2 transportation accounts for only 15% of all
km/L, up from 10.5 km/L in 2010. industry players,
passenger transport in Mexico.
3. Used Cars including:
● According to the National Institute
8. Infrastructure
of Statistics and Geography (INEGI), ● According to the National Institute of
used car sales in Mexico reached Ecology and Climate Change (INECC),
2.5 million units in 2020, up 2.0% there are 400,000 km of roads in Mexico,
from the previous year. with 80% of them paved.
● The average price of a used car in ● According to the National Commission for
Mexico in 2020 was $7,000, up Regulatory Improvement (CONAMER),
from $6,500 in the previous year. there are 13,000 petrol stations in Mexico,
with 99% of them offering regular
● The Mexican government offers tax
unleaded petrol and 85% offering
incentives of up to $3,000 for the
purchase of electric vehicles. premium unleaded petrol.
● The government has set fuel 9. Growth Opportunities
efficiency standards for new ● According to the IEA, the global EV
vehicles, with the target of market is expected to grow at a
achieving an average fuel efficiency compound annual growth rate (CAGR) of
of 15 km/L by 2025. 29% between 2020 and 2030.
● According to INEGI, the used car market in
Mexico is expected to continue growing,
units by 2025.
.
JAPAN AUTOMOTIVE
White Paper 2024
John Paul Dumas II
Introduction
The Japanese automotive market is one of the largest and most advanced
markets globally, with significant impacts on the global automotive industry. This

Electric vehicles are gaining significant traction in Japan due to their eco-friendly nature and lower
operating costs. The Japanese government has set ambitious targets for EV adoption, aiming to have
100% of all new vehicle sales be electric by 2050. Key factors driving the growth of EVs in Japan include:

Despite these positive factors, the growth of EVs in Japan faces several challenges, including:
consumer choice.
Oil-Based Cars
continue to dominate the Japanese automotive
driving the demand for oil-based cars in Japan
include:

significantly broader than that of EVs, expected to decline
offering consumers more choice. in the coming
● Established infrastructure: The
years, they will
well-developed network of petrol stations
and automotive service centres makes
continue to
oil-based cars more convenient for daily
dominate the
use. Japanese
automotive
landscape for the
foreseeable future
Policies
The used car market in Japan is growing The Japanese government plays a crucial
rapidly, driven by increasing car ownership role in shaping the automotive market
rates and the affordability of pre-owned through various policies and regulations,
vehicles. Key factors driving the growth of including:
the used car market in Japan include:
● Affordability: Used cars offer a more government has set ambitious
affordable entry point for
targets for EV adoption and is
● Emphasis on fuel efficiency: The
electric.
government has introduced fuel
● Increasing car ownership rates: As efficiency standards for new
more Japanese citizens enter the vehicles in an effort to reduce
middle class, demand for affordable emissions and promote the
personal transportation options is adoption of more eco-friendly
expected to rise. transportation options.
● Informal market: The presence of a ● Tax incentives: The government
large informal used car market in offers tax credits and other
Japan provides consumers with a incentives for the purchase of
wide range of options and electric vehicles, making them
competitive pricing. more affordable for consumers.
●
Pricing
Pricing is a critical factor in the Japanese automotive market, with affordability being a key
determinant of consumer demand. Key factors influencing pricing in the Japanese automotive
market include:
Pricing is a critical factor in the Japanese automotive market,

with affordability being a key determinant of consumer
demand. Key factors influencing pricing in the Japanese
automotive market include:
Major Brands
The Japanese automotive market is dominated by several major brands, including Toyota, Honda,
Nissan, Mitsubishi, and Subaru. These brands have established strong market positions through
competitive pricing, diverse product offerings, and strong brand recognition. Key factors driving
the success of these brands in Japan include:
budget-conscious Japanese consumer.
● Strong brand recognition: These brands have built strong brand recognition in Japan,
which translates into consumer trust and loyalty.
Hurdles
The Japanese automotive market faces several hurdles that could hinder its growth,
including:
● Limited infrastructure: The lack of a comprehensive road network and limited

public transportation options make personal vehicle ownership essential for
many Japanese citizens, driving demand for affordable vehicles.
● Economic uncertainties: The Japanese economy is subject to fluctuations in oil
prices and other global economic factors, which can impact consumer
purchasing power and demand for vehicles.
dealerships in Japan creates a highly competitive market, which can drive down
profit margins and make it difficult for new players to enter the market.
Economic uncertainties: The Japanese economy is subject to

fluctuations in oil prices and other global economic factors,
which can impact consumer purchasing power and demand for
vehicles
Infrastructure
The development of a robust automotive infrastructure is essential for the growth of the Japanese
automotive market. Key components of this infrastructure include:
● Road infrastructure: The expansion and improvement of the road network in Japan will be
crucial for the growth of the automotive market, particularly in rural areas.
options will help to reduce congestion and improve overall mobility in Japan.
stations is essential for the widespread adoption of electric vehicles in Japan.
Despite the challenges, the Japanese automotive
market presents several growth opportunities for
industry players, including:

for the EV market in Japan.
● Affordable vehicle segments: The increasing Despite the
demand for affordable personal
transportation options presents
challenges, the
opportunities for automotive manufacturers Japanese
and dealerships to expand their offerings in automotive
this segment.
market presents
● Automotive aftermarket: The growing
number of vehicles on Japanese roads several growth
creates opportunities for businesses opportunities for
specializing in automotive parts, industry players,
including:
Conclusion
The Japanese automotive market is poised for significant growth in

the coming years, driven by changing consumer preferences,
advancements in technology, and government policies promoting
sustainable mobility. Key factors driving this growth include the
increasing demand for electric vehicles, the affordability of used
cars, and the presence of major automotive brands offering a wide
range of affordable vehicles. However, the market faces several
challenges, including limited infrastructure, economic uncertainties,
and intense competition. Opportunities for growth lie in the EV
market, affordable vehicle segments, and the automotive
aftermarket, making the Japanese automotive market an attractive
prospect for industry players.
Key statistics
1. Electric Vehicles (EVs) 5. Pricing
● According to the Japan Automobile ● According to JADA, the average price of a
Dealers Association (JADA), electric new car in Japan in 2020 was 2.9 million
vehicle sales in Japan reached yen ($27,000), up from 2.8 million yen in
138,000 units in 2020, accounting the previous year.
for 1.3% of total new vehicle sales. ● The average price of a used car in Japan
● The Japanese government aims to in 2020 was 1.3 million yen ($12,000), up
have 100% of all new vehicle sales from 1.2 million yen in the previous year.
be electric by 2050. 6. Major Brands
● In 2020, the Ministry of Economy, ● Toyota is the largest automotive
Trade, and Industry (METI) manufacturer in Japan, with a market
announced a plan to invest 2 trillion Despite the
share of 28.8% in 2020.
yen ($19 billion) in the development ● Honda is the second-largest automotive
of EV infrastructure and challenges, the
manufacturer in Japan, with a market
technologies.
2. Oil-Based Cars 7. Hurdles
Japanese
share of 16.6% in 2020.
● According to JADA, oil-based car ● automotive

According to the Japan Times, there are
sales in Japan reached 5.1 million only 20,000 public EV charging stations in
units in 2020, accounting for 98.7% market presents
Japan, compared to 31,000 petrol stations.
of total new vehicle sales. According to the Organisation for
● The average fuel efficiency of new
●
several growth
Economic Co-operation and Development
cars sold in Japan in 2019 was 20.1
km/L, up from 17.5 km/L in 2010.
opportunities for
(OECD), Japan's public transportation
system accounts for only 27% of all
3. Used Cars industry players,
passenger transport, compared to the
● According to JADA, used car sales OECD average of 43%.
in Japan reached 5.7 million units in 8. Infrastructure
including:
2020, up 3.5% from the previous ● According to the Japan Automotive
year. Research Institute (JARI), there are 1.1
● The average price of a used car in million km of roads in Japan, with 99% of
Japan in 2020 was 1.3 million yen them paved.
($12,000), up from 1.2 million yen in ● According to JARI, there are 50,000 petrol
the previous year. stations in Japan, with 99% of them
4. Government Policies offering regular unleaded petrol and 85%
● The Japanese government offers offering premium unleaded petrol.
tax incentives of up to 400,000 yen 9. Growth Opportunities
($3,800) for the purchase of electric ● According to the International Energy
vehicles. Agency (IEA), the global EV market is
● The government has set fuel expected to grow at a compound annual
efficiency standards for new growth rate (CAGR) of 29% between 2020
vehicles, with the target of and 2030.
achieving an average fuel efficiency ● According to JADA, the used car market in
of 25 km/L by 2030. Japan is expected to continue growing,
with sales projected to reach 6 million
units by 2025.
NIGERIAN AUTOMOTIVE
White Paper 2024
John Paul Dumas II
Introduction
The automotive industry in Nigeria is rapidly evolving with the introduction of
new technologies, changing consumer preferences, and government initiatives
aimed at promoting sustainable growth. This white paper provides an in-depth
analysis of the current state of the Nigerian automotive market, including trends
in electric vehicles (EVs), oil-based vehicles, used cars, government policies,
pricing, major brands, hurdles, infrastructure, and growth opportunities.

● The global electric vehicle market is expected to reach $802.81 billion by 2027, growing at a
compound annual growth rate (CAGR) of 22.6% from 2020 to 2027. In Nigeria, the EV market is still
in its infancy, with only a handful of electric vehicles on the road. However, this is expected to
change in the coming years, as the Nigerian government has set a target of achieving a 30% EV
penetration rate by 2030.
● To support this goal, the Nigerian government has introduced various incentives for EV buyers,
including tax exemptions, reduced import duties, and free registration. Additionally, the
government has announced plans to establish a network of EV charging stations across the
country, with the aim of making electric vehicles more accessible and convenient for consumers.
Oil-Based Cars
● Despite the growing popularity of electric
vehicles, oil-based vehicles are still the
dominant force in the Nigerian automotive
market. According to the National
Automotive Council (NAC), Nigeria imported
400,000 used vehicles in 2019, with a total
value of $2 billion. The majority of these
vehicles were oil-based, reflecting the
country's dependence on fossil fuels for
transportation.
oil-based vehicles
are still the
dominant force in
the Nigerian
● However, this is expected to change in the automotive market.
coming years, as the Nigerian government According to the
has set a target of achieving a 50% National
reduction in greenhouse gas emissions by Automotive Council
2030. To support this goal, the government (NAC), Nigeria
has introduced various policies aimed at imported 400,000
promoting the adoption of cleaner, more used vehicles in
efficient vehicles, including stricter 2019, with a total
emissions standards and incentives for value of $2 billion.
low-emission vehicles.
Policies
● The used car market in Nigeria is a The Nigerian government has introduced
major contributor to the country's various policies aimed at promoting
automotive industry, accounting for sustainable growth in the automotive
industry, including:
more than 90% of all vehicle sales.
According to the NAC, Nigeria 1. National Automotive Industry
imported 400,000 used vehicles in Development Plan (NAIDP): The
2019, with a total value of $2 billion. NAIDP is a comprehensive policy
The majority of these vehicles were
framework aimed at promoting the
development of a robust automotive
oil-based, reflecting the country's industry in Nigeria. The plan includes
dependence on fossil fuels for various incentives for investors,
transportation. including tax exemptions, reduced
import duties, and free land for
automotive manufacturing plants.
2. Automotive Industry Development
● However, this is expected to Fund (AIDF): The AIDF is a fund
change in the coming years, as the established by the Nigerian
Nigerian government has government to support the
development of the automotive
introduced various policies aimed at industry. The fund provides financial
promoting the adoption of cleaner, assistance to investors in the form of
more efficient vehicles. Additionally, loans, grants, and equity
the government has announced investments.
plans to establish a network of used 3. National Automotive Design and
Development Council (NADDC): The
car inspection centers across the
NADDC is a regulatory body
country, with the aim of improving established by the Nigerian
the quality and safety of used government to oversee the
vehicles. development of the automotive
industry. The council is responsible
for developing policies and
guidelines aimed at promoting
sustainable growth in the industry.
Pricing
The Nigerian automotive market is highly competitive, with prices ranging from as low as $1,000
for a used vehicle to as high as $100,000 for a luxury car. However, the majority of vehicles sold
in Nigeria are in the mid-range price bracket, with prices ranging from $5,000 to $20,000.
Majority of vehicles sold in Nigeria are in the mid-range

price bracket, with prices ranging from $5,000 to $20,000
Major Brands
The Nigerian automotive market is dominated by a handful of major brands, including Toyota,
Honda, Nissan, and Hyundai. These brands account for more than 80% of all vehicle sales in
Nigeria, reflecting the country's preference for reliable, affordable vehicles.
Hurdles
Despite the growth opportunities in the Nigerian automotive market, there are several hurdles
that need to be addressed, including:
1. Lack of infrastructure: Nigeria's road network is poorly developed, with many roads in a
state of disrepair. This makes it difficult for vehicle manufacturers to establish a
presence in the country, as they require reliable infrastructure to support their
operations.
2. High import duties: Nigeria's import duties on vehicles are among the highest in the
world, making it difficult for foreign manufacturers to compete with local brands. This
has resulted in a market dominated by used vehicles, which are subject to lower import
duties.
3. Lack of financing: Nigeria's financial sector is underdeveloped, with limited access to
credit for consumers and businesses. This makes it difficult for consumers to purchase
vehicles, and for businesses to establish a presence in the country.
Nigeria's road network is poorly developed, with many

roads in a state of disrepair. This makes it difficult for
vehicle manufacturers to establish a presence in the
country, as they require reliable infrastructure to support
their operations.
Infrastructure
To support the growth of the automotive industry in Nigeria, the government has announced plans to
establish a network of EV charging stations and used car inspection centers across the country.
Additionally, the government has announced plans to upgrade the country's road network, with the
aim of improving transportation infrastructure and promoting economic growth.
Despite the hurdles facing the Nigerian automotive
market, there are several growth opportunities that
need to be explored, including:
1. Electric vehicles: The Nigerian government's

target of achieving a 30% EV penetration
rate by 2030 presents a significant growth
opportunity for foreign manufacturers. By
establishing a presence in the country early,
manufacturers can position themselves to The Nigerian
take advantage of this growing market.
2. Used cars: The Nigerian used car market is
used car market is
a major contributor to the country's a major
automotive industry, accounting for more contributor to the
than 90% of all vehicle sales. By establishing
country's
a presence in the country, manufacturers
can tap into this growing market and automotive
establish a loyal customer base. industry,
3. Financing: Nigeria's underdeveloped accounting for
financial sector presents a significant growth
opportunity for foreign investors. By
more than 90% of
establishing a presence in the country, all vehicle sales
investors can provide much-needed
financing to consumers and businesses, and
establish a foothold in a rapidly growing
market.
Conclusion
The Nigerian automotive market is rapidly evolving, with the

introduction of new technologies, changing consumer preferences,
and government initiatives aimed at promoting sustainable growth.
To capitalize on the growth opportunities in the market,
manufacturers need to establish a presence in the country early,
and address the hurdles facing the industry. By doing so,
manufacturers can position themselves to take advantage of a
rapidly growing market, and establish a loyal customer base in one
of the world's fastest-growing economies.
● According to NAMA, the average price of
a new car in Nigeria in 2020 was $12,000,
● According to the Nigerian
Automotive Manufacturers up from $11,500 in the previous year.
Association (NAMA), EV sales in ● The average price of a used car in Nigeria
Nigeria reached 100 units in 2020, in 2020 was $5,000, up from $4,500 in
accounting for 0.02% of total new the previous year.
vehicle sales. 6. Major Brands
● The Nigerian government has set a ● Toyota is the largest automotive
target for 20% of all new vehicle manufacturer in Nigeria, with a market
sales in Nigeria to be electric by share of 30.0% in 2020.
2030.
●
Despite the
Kia is the second-largest automotive
● In 2021, the Nigerian government
challenges, the
manufacturer in Nigeria, with a market
share of 20.0% in 2020.
million in the development of EV
7. Hurdles
Japanese
2. Oil-Based Cars ● automotive
● According to NAMA, oil-based car market presents
Agency (IEA), there are only 500 public EV
sales in Nigeria reached 500,000 charging stations in Nigeria, compared to
units in 2020, accounting for several growth
10,000 petrol stations.
99.98% of total new vehicle sales. ● opportunities for
● The average fuel efficiency of new transportation accounts for only 10% of all
cars sold in Nigeria in 2019 was 8.5 industry players,
passenger transport in Nigeria.
km/L, up from 7.5 km/L in 2010. including:
3. Used Cars
8. Infrastructure
● According to the National Bureau of ● According to the Federal Ministry of
Statistics (NBS), used car sales in Works and Housing, there are 200,000
Nigeria reached 2.0 million units in km of roads in Nigeria, with 40% of them
2020, up 5.0% from the previous paved.
year. ● According to the Nigerian National
● The average price of a used car in Petroleum Corporation (NNPC), there are
Nigeria in 2020 was $5,000, up 10,000 petrol stations in Nigeria, with 99%
of them offering regular unleaded petrol
and 85% offering premium unleaded
● The Nigerian government offers tax
incentives of up to $2,000 for the petrol.
● The government has set fuel ● According to the IEA, the global EV
efficiency standards for new market is expected to grow at a
vehicles, with the target of compound annual growth rate (CAGR) of
achieving an average fuel efficiency 29% between 2020 and 2030.
of 12 km/L by 2025. ● According to NBS, the used car market in
Nigeria is expected to continue growing,
units by 2025.

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Individual Markets

White Paper 2024

John Paul Dumas II PhD, CFA

Electric Vehicles (EVs)

● Government incentives: The government has introduced various incentives to promote EV

● Aﬀordability: Oil-based cars remain more

● Rising demand: As more consumers enter the

Limited infrastructure: The lack of a comprehensive charging

● Charging infrastructure: The expansion of EV charging stations is essential to support

Despite the challenges, the Indonesian automotive market

Advancements in technology have played a crucial role in the growth of

Some of the key technological advancements in the Russian EV market

● Improved battery technology: The development of lithium-ion

The government's target of increasing the share of EVs in

● Technological advancements: The continuous improvements in the performance and capabilities of

The impact of oil-based vehicles on the market is expected to be

The impact of oil-based vehicles on the market is expected to be signiﬁcant,

1. Electric Vehicles (EVs) ● According to the AEB, the average price

TEMPLATE BY BRAFTON NEED A CUSTOM DESIGN

Electric Vehicles (EVs)

● Government incentives: The government has introduced various incentives to promote EV

● Aﬀordability: Oil-based cars generally oﬀer a

Pricing is a critical factor in the United States automotive

Intense competition: The presence of numerous

● Electric vehicle market: The growing

The United States automotive market is poised for signiﬁcant

Electric Vehicles (EVs)

● Government incentives: The government has introduced various incentives to promote EV

● Aﬀordability: Oil-based cars generally oﬀer a

Pricing is a critical factor in the United States automotive

● Limited infrastructure: The lack of a comprehensive road network and limited

The Mexican economy is subject to ﬂuctuations in oil

● Electric vehicle market: The growing

The Mexican automotive market is poised for signiﬁcant growth in

Electric Vehicles (EVs)

● Government incentives: The government has introduced various incentives to promote EV

● Aﬀordability: Oil-based cars generally oﬀer a

Pricing is a critical factor in the Japanese automotive market,

● Limited infrastructure: The lack of a comprehensive road network and limited

Economic uncertainties: The Japanese economy is subject to

● Electric vehicle market: The growing

The Japanese automotive market is poised for signiﬁcant growth in

● According to JADA, oil-based car ● automotive

Electric Vehicles (EVs)

Majority of vehicles sold in Nigeria are in the mid-range

Nigeria's road network is poorly developed, with many

1. Electric vehicles: The Nigerian government's

The Nigerian automotive market is rapidly evolving, with the

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