After-sales service emerges as next battleground in Nigeria’s automotive market – Businessday NG

The growing presence of both local and foreign brands in Nigeria is raising competition in the automotive market, as buyers place greater importance on access to spare parts, reliable repairs, and affordable maintenance.

As the industry continues to evolve, the ability of distributors and dealers to provide dependable after-sales support could become one of the industry’s most important competitive advantages.

“A tractor, truck or car stays in service for ten to twenty years, and over that life the owner will spend far more on parts, service, repairs and upgrades than the original margin on the sale,” Murad Iftikhar, technical trainer, said.

Iftikhar noted that manufacturers that manage after-sales well, earn steady revenue, loyal customers and a strong brand, while those that neglect it risk losing all three, regardless of the quality of their vehicles.

Read also: Buying a car? Five after-sales questions to ask before paying

Vehicle buyers often base their choices on factors such as price, brand reputation, engine performance, fuel economy, design and available technology. However, the quality of after-sales support they receive once the vehicle leaves the showroom can be just as important.

Adams Oyeleye, aftersales manager at CIG Motors Co., Ltd, said a customer does not judge a car brand on the day they buy it, but on the day something goes wrong.

“Aftersales isn’t a support function. It is where trust and loyalty are won,” Oyeleye said.

Every vehicle eventually requires maintenance. Some will need replacement parts, technical attention or warranty repairs, while others may experience unexpected breakdowns.

How effectively automotive businesses respond to these needs will determine whether customers enjoy a satisfactory ownership experience or struggle with avoidable difficulties, which makes after-sales support more than an additional service.

The real cost of owning a vehicle

The financial implications of vehicle ownership extend beyond the purchase price. Regular servicing, replacement parts, unexpected repairs and vehicle downtime contribute to the overall cost of keeping a vehicle operational.

For private motorists, poor maintenance support can create financial uncertainty. For commercial operators, delays in obtaining parts or completing repairs can affect productivity and business performance.

This is particularly important for companies operating fleets, where vehicle availability directly influences service delivery and revenue generation.

“New vehicle sales are cyclical and price competitive. After-sales is steadier and carries higher margins. Its contribution to return on investment comes from several directions,” Iftikhar said.

A vehicle that is affordable to purchase may become expensive to maintain if the necessary technical support and spare parts are difficult to access.

Consequently, buyers need to evaluate the long-term ownership proposition before making purchasing decisions. Warranty coverage, free servicing and roadside assistance are useful benefits, but customers need to understand their scope and limitations.

A warranty does not necessarily cover every mechanical or electrical fault. Free servicing may exclude certain consumables, while roadside assistance may operate within defined geographical and operational conditions.

Automotive providers, therefore need to communicate these details clearly and ensure that their service infrastructure can support the commitments being made.

Carloha’s CarlohaCare 6-6-7 initiative illustrates an approach that places ownership support at the centre of the customer proposition. It offers a six-year warranty, six years of free servicing and a seven-day repair promise, subject to applicable terms and conditions.

The additional CarlohaCare Rescue service also demonstrates how roadside assistance can complement conventional after-sales arrangements.

Competing through customer confidence

Nigeria’s automotive industry has an opportunity to establish after-sales excellence as a major measure of competitiveness.

The companies that invest in dependable service networks, transparent policies and effective customer relations will be better positioned to build lasting relationships with vehicle owners.

Iftikhar noted that after-sales service should be viewed as a major source of revenue and profitability for automotive dealers and manufacturers, rather than merely a support function.

“After-sales is where customer loyalty is built, where dealers earn their margins and where a significant part of long-term profit is generated.

“Investing in trained people, reliable parts, fair dealer policies and disciplined measurement improves Dealer Satisfaction Index (DSI), which improves Customer Satisfaction Index (CSI), which in turn improves ROI,” he said.

Ultimately, the value of a vehicle is not determined solely by its features at the point of purchase. It is also influenced by how reliably it performs and the quality of support available throughout its useful life.

The sale may close at the showroom, but the ownership relationship begins there.

“The product wins the first sale. Service wins every sale after that,” Iftikhar said.

Effective after-sales support requires sustained investment. Dealerships need qualified technicians, modern diagnostic equipment, functional workshops, genuine spare parts and efficient systems for handling customer enquiries and complaints.

The next phase of competition in Nigeria’s automotive market may depend less on how many vehicles dealers sell and more on how well they support those already on the road.

For manufacturers and dealers, the ability to keep vehicles running efficiently could determine whether first-time buyers become repeat customers or turn to competing brands.

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Juliet Onyema

Juliet Onyema is a transport journalist who reports on Nigeria’s transport and automobile industry. She covers emerging Electric Vehicles (EVs), ranging from adoption to usage, automobile firms and transport policies which affect them, and also recurring trends affecting commuters’ mobility interstate and intrastate.

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Businessday NG