To take advantage of the African market’s growth potential, Nissan has reconstituted its business on the continent. The Japanese automaker has established a new regional unit for the continent that will be headed by Mike Whitfield. In his previous roles, Whitfield oversaw the company’s operations as a Managing Director in Egypt and South Africa.
In an official statement released by Nissan, the objective behind this reconstitution of the business is to enable the organization to leverage the lucrative opportunities that are slowly and steadily cropping up in Africa. The social-economic characteristics of the African people are improving the and this, combined with the low penetration level, means that the company has got the huge potential that can be realized through effective planning and efficient implementation.
According to statistics, the 1-billion population of sub-Saharan Africa contributes only 1% of the total sales of new cars globally. This means that not only Nissan but the whole automotive industry has a tremendous business opportunity to grow and attract new buyers in the region.
At present, the most developed economy of the continent, South Africa is the country where automobile organizations have focused their attention on selling their products and services. This is evident from the fact that 85% of the total sales in the continent comes from South Africa alone, leaving behind a huge untapped potential in other countries for automotive companies.
Many automobile companies, including the likes of Nissan, BMW, Toyota, VW, etc., have been in talks with the African governments for attaining favorable and conducive conditions for sales and manufacturing of new cars in the continent. The car companies are also bullish about the African Continental Free Trade Area, which will come into effect next year and facilitate easy flow of goods and investment between different countries that are part of this free trade agreement.