Nigeria’s luxury Car market poised for growth, expected to Hit $55 million by 2028

The Nigerian luxury car market is witnessing significant growth, propelled by evolving consumer desires, infrastructure development, and a shift towards sustainable luxury vehicles, says Maxim Makarchuk, Chief Operating Officer of Jiji and Cars 45.

Despite rising inflation and macroeconomic hurdles, the market is expected to achieve a Compound Annual Growth Rate (CAGR) of 14.75%, reaching a projected value of $55 million by 2028, according to Statista.

Jiji, Africa’s leading e-commerce platform, acquired Cars45 to enhance its automotive trading capabilities. Makarchuk highlights that the market’s expansion is driven by the Nigerian middle class’s growing appetite for luxury goods, seeing cars as symbols of success and social status. Brands like Lexus, Mercedes-Benz, Toyota, and Land Rover dominate, representing over 60% of luxury car advertisements on Jiji.

This demand is fueled by customers’ desires for vehicles that balance style, comfort, performance, and budget. SUVs are particularly popular due to their space, versatility, and suitability for Nigeria’s challenging road conditions. Makarchuk notes that improved infrastructure, such as enhanced road networks and upscale residential developments, supports this market growth.

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Sustainability is also a key factor, with Nigerian consumers increasingly opting for eco-friendly and fuel-efficient models like Tesla’s EVs and BMW’s i3. Makarchuk emphasizes the need for more EV charging stations to accommodate this trend, citing existing facilities in Lagos, Sokoto, and private locations.

Luxury goods companies, though typically resilient to inflation, may face future challenges if inflation rates continue to rise. Nevertheless, the high-end luxury market remains robust, driven by consumers prioritizing status, comfort, and performance.

Makarchuk concludes that the luxury car market’s resilience and growth present significant opportunities for car dealers, investors, and other automotive stakeholders. The sector’s steady upward trajectory, facilitated by platforms like Cars 45 and Jiji, ensures that access to luxury cars remains attainable, defying economic odds.

Majolie Obaje, Regional Head of PR and Marketing at Jiji Africa, echoes this sentiment, noting that the market’s growth reflects broader consumer behavior trends, infrastructure advancements, and sustainable practices, offering lucrative opportunities despite economic challenges.