Automotive sector

Autochek Summit: Improving Access to Finance Will Drive Automotive Sector Growth

The automotive sector commands enormous value locked inside, but as players operate in silos, it has been difficult to aggregate values.

The market

Plus, technology is having a massive impact on the $2 trillion auto industry – and smart investors are finding the best companies that could take advantage of it.

According to this report, in 2017 alone, 94.5 million cars were sold worldwide and the demand for light vehicles in all consumer markets is skyrocketing.

The sector has been on a downward trend due to the downturn in the global economy and the advent of the coronavirus pandemic in all key economies. However, as economies begin to recover from the pandemic, global car sales rose to around 66.7 million automobiles in 2021 from around 63.8 million units in 2020, according to the Statista report.

If you take out real estate, the biggest consumer of money for any individual is the automobile. So when you relate it to the GDP of a country like Nigeria; perhaps after oil and gas, ICT and real estate, the next should be the automotive industry.

The need

Of course, everyone wants to buy a car. But there remains a challenge; Access to finance to purchase vehicles for fleet owners and individuals in most African countries is difficult. Banks are reluctant to lend and when they do, it is at punitive interest rates – up to 30% in some cases.

In a 2018 Deloitte & Touche report: Navigating the African Automotive Sector, the management consultancy called Africa “the last frontier for the global automotive industry”.

Rising income levels, the emergence of a middle class, growing population size and positive economic prospects make this an attractive materialization opportunity – if only the conundrum of access to finance can be solved.

In Ethiopia, Kenya and Nigeria, 8 out of 10 imported vehicles are used. Less than 22% of adults in Ethiopia have an account at a financial institution. In Kenya over 55% (55.2%) do and 44%+ in Nigeria.

So is there a solution? Yes. Car credit and car financing are gaining momentum in Nigeria and even in Africa.

Car loan or auto financing is no longer a model that only works in America and/or Europe.

Autochek’s approach to changing auto finance in Africa

A company is leading a paradigm shift in Africa; to take frantic measures to help people develop this culture of access to car finance supported by commercial banks and micro-finance banks at reduced interest rates. This company is Autochek.

Clearly, the current process of dipping into company funds or savings to buy a new car can be inefficient, unnecessarily expensive and time-consuming.

As a leading automotive technology company, Autochek strives to facilitate access to automotive financing options in Nigeria and across Africa; using new technologies to eliminate middlemen and has the potential to create new profits for the African automotive industry.

Autochek Summit

These and many more informed the Autochek Summit, the first-ever auto finance event that allowed industry players to brainstorm the best possible ways to better serve citizens.

Speaking at the first-ever Auto Finance Summit in Lagos on Wednesday, Etop Ikpe, CEO of Autochek, pointed out that various stakeholders had worked in silos in the past and that the auto sector needed a multi-pronged approach. funding levels to reach its full potential. potential in Nigeria and across the continent.

Ikpe further pointed out that finance is critical for the automotive ecosystem as it plays a critical role in alleviating transport poverty and impacts the entire value chain including dealerships, workshops , SMEs and ultimately the consumer.

He also highlighted the need to educate consumers on how to responsibly access credit and make the most of the financing solutions available to them, as well as other related services.

With operations across West and East Africa and a partner-led retail footprint in over 1,000 dealer and workshop partner locations, Autochek is committed to creating solutions for improve trade and synergy between the various stakeholders in the African automotive sector. Its products and services include facilitating access to automotive loans, quality maintenance/after-sales services, warranty solutions and transactional marketplaces.

Mayokun Fadeyibi, SVP West Africa, highlighted that Autochek is building the infrastructure to make car ownership more accessible and affordable for more Africans and this event brought together key stakeholders to Engage in the conversations needed to drive growth and opportunity in Africa’s automotive sector.

Notable guests at the summit were the Chief Executive of the National Automotive Design and Development Council, Jelani Aliyu, the National Chairman of the Automobile Dealers Association of Nigeria, Prince Ajibola Adedoyin, Omobola Johnson, the former Minister of Communications and TLcom Capital lead partner, Dr Adebola Akindele GMD. Courteville Solutions, Bisi Oni, ED, FundQuest Financial Services Limited, etc.

Key discussions at the summit included “Releasing Constraints to Drive Growth and Job Creation in the Automotive Industry”, “The Future of Automotive Finance and Opportunities for the Continent” and “The Effect of integrated finance drive to support digital and financial inclusion in Africa”. .

Speaking to TechEconomy.ng, Timi Tope Ologunoye, Chief Operating Officer of Autochek said, “The industry has not been able to realize its potential as all players play independently. What we’ve done with this summit is bring industry players together in a way that puts our mouths to where the value is.

“As you could have seen today, commercial banks, micro financial banks, fintech players, large logistics companies like Kobo360, TradeDepot, etc., participated in this Summit. Car dealers, policy makers, investors and others all attended the summit which aimed to weave things together so that when we make recommendations to government, they listen to us.

The Autochek Summit was not “another talk show”, but rather in-depth discussions about industry potentials and how to influence policy directions for industry improvement.

Great release by Autochek.

Here are some faces at the Autochek Summit 2022:

Automotive financing

Autochek Summit 2022

Autochek Summit 2022

Autochek Summit 2022

Autochek Summit 2022

Automotive financing

Autochek Team

Autochek Summit 2022

Autochek Summit 2022

Automotive financing