During former President Good luck Jonathan’s era, car import duty tariff was increased by 70% to promote made in Nigeria automobiles.
|KIA Motors. Image credit: Kia Motors Nigeria.|
However, the policy which was aimed at boosting local production and reviving local assembly plants has not achieved its aim as locally produced cars just control less than 10 percent of the market.
The recent economic situation have forced Nigerian auto dealers like Kia, Elizade, Coscharis, Lanre Shittu, and Mandillas Motors to engage in sales of Tokunbo cars to survive.
Recent report showed that the aforementioned cars have resorted to car swap and buy back with customers.
Nigerians with used vehicles, popularly known as tokunbo cars in Nigeria, can now take their vehicles to these car dealers and swap their old vehicles for a new one.
KIA motors recently launched a certified used car programme which will enable KIA users to swap their old KIA autos for new models after valuation of the old car.
The car-swap or buy-back deal is an encourage-able business strategy, as it would help more Nigerians to patronise new vehicles as compared to used vehicles.