Toyota in Nigeria
Essay title: Toyota in Nigeria
. EXECUTIVE SUMMARY
In response to environmental concerns coupled with rising prices and demands for crude oil and subsequently gasoline, the Prius, the world’s first mass-produced gasoline-electric hybrid vehicle, was finally featured and sold in Japan in December 1997.
Its reputation as an advanced eco-considerate sedan has continued to grow, with sales beginning in North America in July 2000 and in Europe in September of the same year. Including Asia, the Prius is now available in more than 20 countries and territories around the globe.
The main objectives of producing the Prius were to have a product which will achieve a high contribution to fuel economy and reduction of greenhouse gases. It should also have the ability to travel long distances without refueling. The product must have an affordable price patronized by a wide spectrum of customers.
Nigeria is an oil producing country, which ranks No. 5 amongst OPEC (Organization of Petroleum exporting countries) members. It has a daily production of 2.16 million barrels/day (as of July 2003), and it also places as the seventh largest oil producer in the world. Nigeria has a potentially large automobile market, which peaked at 2.5 million new vehicle registrations in 2001. Coupled with a positive effect of comparatively high price of oil in the international market, which will boost Nigerias foreign reserves, the automobile market is expected to have a growth rate of over fifteen percent in the next five years. The production of oil, discovered in the Niger Delta region 40 years ago, is having a devastating effect on Nigerias largest wetland regions and populated cities.
Oil companies, who are going to Nigeria to make profits, are failing to invest in its infrastructure to prevent pollution. The Nigerian government is taking measures to reduce pollution, by introducing products such as the Prius into its economy. Families who live among their oil fields are exposed to methane gas and have to deal with frequent oil leaks in their environment.
II. ANALYSIS OF CURRENT SITUATION
A. Toyota Motor Co. Market Analysis
1. Toyota Industry in Nigeria
Presently, Toyotas market share in Nigeria in the passenger car segment is 20%, and is on the rise. In the commercial