In the last forty years and starting during the oil boom years, the increased number of cars in Nigeria over-saturated Nigerian roads. The demand for tyres kept growing over the years and the tyre market, like many other markets in the country at that time, was a seller’s market.
This growth continued until the economy started to decline in
the last twenty years as a result of the world’s energy crisis, coupled with internal
problems ranging from socio-economic to political issues. Over the last 20 years
or so, it had become difficult to buy new cars and most people had to resort to
second hand (Tokunbo) cars.
The market reacted by importing an increasing number of second-hand
cars into the country from different parts of the world, which became more affordable
and influenced the car tyre market in several ways.
Globally, the leading tyre manufacturers today include
Bridgestone, Michelin, Goodyear,
Continental, Pirelli and Sumitomo (for Dunlop brand). World production of tyre
is estimated to be 860 million units annually and the Nigerian tyre market is
now emerging as a leading importer of tyres in West Africa.
According to
a TechSci Research report in 2015, the tyre market in Nigeria is
dominated by the passenger car tire segment, and this trend is expected to
continue over the next five years.
Data released by the National
Bureau of Statistics (NBS), in Q1 2018, revealed that Nigeria has a
total of 11.7 million vehicles, with commercial vehicles accounting for
6.8 million, representing about 58.08 per cent, private are 4.7
million (40.67 per cent), government vehicles followed with 139,264 (1.19 per cent), while diplomatic vehicles accounted for 5,912 (0.05 per cent).
Currently, there are about 150 brands of tyres in the Nigerian
market. Dominant players include Dunlop, Michelin, Bridgestone, Pirelli,
Firestone, and Continental tires. Apart from these flagship brands,
several small players have also made entry into the Nigerian market
Dunlop Nigeria Plc and Michelin Nigeria Limited are major pioneers
in Nigeria’s tyre industry with the establishment of their respective
manufacturing outfits. In 2005, the combined annual local capacity was 2.25
million units, representing 75% of the Nigerian tyre market at that time. These two
companies were the only tyre manufacturing outfits in Nigeria, and indeed the
West African region. However, the owners of both factories
shut them down at the end of 2008 and 2006 respectively.
The Nigerian market has become the most sought after
for international tyre manufacturers on the continent because of its huge
market potential, moreover the Nigeria tyre market is very strategic for the nation and
should be revived.
In a Twitter poll conducted by Nairametrics, Michelin got 42%, Bridgestone got 25%, Dunlop
and GoodYear got 18% and 15% respectively.
With the establishment of a headquarters at Ijora, Lagos, and
accredited dealer stores across 16 states of Nigeria with a complementary
online store on Jumia Nigeria, Michelin
has proven her essence by providing access to quality and
affordable tyres with the promise of safety and longevity.
To this end, Michelin at a
virtual launch in March 2021, Introduced the new tyre product, Michelin Agilis
3. The tyre is designed for 25% extra mileage, fuel efficiency, safer and
long-lasting performance with excellent wet grip performance, when new and worn
out.
Michelin Tyres was rated 2020 No.1 Global Tyre Brand by Tire Business. We are dedicated to sustainably improving the mobility of goods and people by manufacturing and marketing quality and safe tyres
Will it be safe to say Michelin tyre is fully back in Nigeria market?
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