Forex scarcity compels Toyota to drop imports by 60% in 2016
The Managing Director of Toyota Nigeria Limited (TNL), Mr. Kunle Ade-Ojo, has described 2016 as tough year for the company, saying the impacts of forex scarcity has forced down sales and import level for the greater part of this year.
He said whereas the level of importation of new vehicles had dropped by over 60 per cent between January and September, retail sale also dipped by 50 per cent.
In an interview in Lagos, Ade-Ojo said forex challenges may extend to 2017, stressing that the situation required cost-cutting measures by corporate bodies to survive.
According to him, the price of vehicles had doubled as a result of the forex constraint, pointing out that auto companies used to buy forex at black markets to avoid loss.
However, he said the company was able to absorb economic shocks due to years of planning and introduction of cost-cutting measures, noting the market share of TNL rose by four per cent, this year, in an indication that it was doing better than its competitors.
On his outlook for 2017, Ade-Ojo said TNL would focus more on after-sale services, bearing in mind that most corporate bodies and government agencies which formed the largest chunk of its clientele, would use their vehicles much longer.
“If you are stagnant and everybody is moving, you are going to be left behind. So it has been a very tough year but, at the same time, we are very grateful to God.