Cars456: Finance Hindering Automotive Industry Growth

The Chief Financial Officer, Cars45, Mr Jide Adamolekun, has said the automotive industry will grow if financing improved.

Adamolekun stated this on Wednesday when he led other members of staff of Cars45, an online marketplace to buy, sell or swap a car, on a courtesy visit to Punch Place, the headquarters of Punch Nigeria Limited, Magboro.

He stated that for the Federal Government’s automotive policy to work, a financing mechanism for potential car buyers should be put in place.

According to him, the automotive industry contributes up to 15 per cent to the Gross Domestic Product of some countries, but that has not been achieved in Nigeria.

He said, “Without financing, the automotive industry won’t grow. It is the same all over the world. It is a capital-intensive industry and an important driver of economic growth. But the challenge right now is financing; many people can’t afford to buy new cars. Until we fix financing whereby getting loans to buy a car is made easy, I don’t think the policy will work as much as it should.

“Rather than say people must have equity of 30 per cent to buy a new car, for instance, let’s use small loans to finance owning a car for people, especially those planning for their first car.”

Adamolekun, however, stated that the company planned to introduce financing options for its clients to bridge the gap of funding car purchase.

“By next month, we should have our own financing company. In other countries, 85 per cent of cars are financed, the automotive industry and finance go together,” he said.

On the company’s expansion plans, he said, “Our target is to grow to about 50 per cent of the market; we have barely scratched the surface.”

He said the company, currently operating in Lagos, Abuja and Port Harcourt, would expand to Kano, Ibadan, Benin and Onitsha within the year.