The COVID-19 pandemic hit the automotive industry hard, causing supply chain disruptions, factory closures, and huge sales and revenue drops.
According to data presented by StockApps, global passenger car sales is expected to plunge by $440bn in 2020 due to the coronavirus outbreak. The downsizing trend is set to continue next year, with revenues falling by 10% YoY in 2021.
Revenues to Continue Falling in the Next Two Years
Even before the pandemic, the car industry was already coping with a downshift in global demand. In 2016, global car sales revenue, including passenger cars, sports cars, SUVs, and MPVs, hit $2.26trn, revealed Statista data. In the next twelve months, this figure slightly increased to $2.27trn.
Statistics show that in 2019, global passenger car sales revenues amounted to $2.29trn. Small SUVs sales, as the largest revenue stream, generated almost 30% of that value or $647bn. Large SUVs and large cars segments followed with $362bn and $275bn in revenue, respectively.
However, the COVID-19 pandemic caused a huge hit, with total car sales revenues falling by almost 20% year-over-year to $1.85trn in 2020. Statista data revealed that revenues in the large cars segment are expected to drop by 25% YoY to $233bn. Large SUV sales are set to witness a 24% cut this year, with revenues falling to $275bn in 2020. Small SUVs follow with a 20% drop and $525bn in revenue.
Analyzed by carmakers, Toyota represented the market leader with a 10.6% market share in 2020. Volkswagen ranked second with a 7.4% market share. Nissan, Ford, and Hyundai follow, with a 6.6%, 6.2%, and 5.6% share, respectively.
Statistics show the downsizing trend is set to continue in 2021, with global passenger car sales revenues falling to $1.65trn. In 2022, this figure is expected to decrease by another 6% to $1.55trn.
Three Largest Markets Lost $231.5B in Revenue Amid COVID-19 Crisis
Statista data also revealed that all of the leading car markets are expected to witness a two-digit revenue drop this year. As the largest market globally, the car sales revenue in the United States is forecast to fall by almost 18% YoY to $507bn in 2020. This figure is expected to plunge to $385bn in the next two years, nearly 40% less than in 2019.
China ranked as the second-largest market globally with $452bn in revenue in 2020, an 18% fall year-over-year. By 2022, total car sales revenues in China are set to drop to $405bn.
As the third-largest market, Japan witnessed an almost 19% YoY drop, with passenger car sales revenues falling to $92bn in 2020. Germany follows with $86.5bn in revenue, 17% less than in 2019.
The Statista data show the three leading markets lost $231.5bn in car sales revenues in 2020 due to the COVID-19 crisis.
Tony Elumelu Acquires Shell, Total, ENI Stakes in OML 17
Tony Elumelu owned Heir Holdings Limited and its related company Transnational Corporation of Nigeria Plc on Friday announced it has completed the purchase of 45 percent stake in Oil Mining Lease (OML 17) through TNOG Oil and Gas Limited.
The acquisition includes all assets of Shell Petroleum Development Company of Nigeria Limited (30 Percent), Total E&P Nigeria Ltd (10 percent) and ENI (five percent) — in the lease.
It was further stated that TNOG Oil and Gas Limited will also have the sole right to operate OML 17.
The field presently has a production capacity of 27,000 barrels per day. Also, there are estimated 2P reserves (proven and probable) of 1.2 billion barrels and an additional one billion barrels in possible reserves — all of oil equivalent.
A consortium of global and regional banks and investors provided a financing component of $1.1 billion for the largest oil and gas financing in Africa in over a decade.
In a statement released on Friday, Shell said the completion was after all the necessary approvals have were received from authorities.
“A total of $453m was paid at completion with the balance to be paid over an agreed period. SPDC will retain its interest in the Port Harcourt Industrial and Residential Areas, which fall within the lease area,” the SPDC said.
Speaking after the completion of the deal, Elumelu said “We have a very clear vision: creating Africa’s first integrated energy multinational, a global quality business, uniquely focused on Africa and Africa’s energy needs. The acquisition of such a high-quality asset, with significant potential for further growth, is a strong statement of our confidence in Nigeria, the Nigerian oil and gas sector and a tribute to the extremely high-quality management team that we have assembled.
“As a Nigerian, and more particularly an indigene of the Niger Delta region, I understand well our responsibilities that come with stewardship of the asset, our engagement with communities and the strategic importance of the oil and gas sector in Nigeria. We see significant benefits from integrating our production, with our ability to power Nigeria, through Transcorp, and deliver value across the energy value chain.
“I would like to thank Shell, Total and ENI, for the professionalism of the process, the Federal Government of Nigeria, the Ministry of Petroleum Resources, and the NNPC for the confidence they have placed in us.”
Tony Elumelu is the Chairman of Heirs Holdings Limited, Transcorp and United Bank for Africa Plc.
Exporters Say CBN Pre-export Requirements is Frustrating Export of Goods
Exporters have said the recently introduced pre-export requirements by the Central Bank of Nigeria is creating unnecessary bottlenecks for exporters and the movement of goods out of the country.
Exporters, who spoke under the aegis of the Network of Practicing Non-oil Exporters of Nigeria (NPNEN), said the electronic Nigeria Export Proceed Form now required by financial institutions from exporters had come with so many challenges.
Ahmed Rabiu, the President, NPNEN, explained that the new policy had several requirements that often led to delays and loss of income on the part of exporters.
He said, “We acknowledge the CBN’s desire to ensure that all exports out of Nigeria are documented in order to ensure that the proceeds of such exports are repatriated.
“However, the reality on the field shows that the process is causing undue delays and consequently, encouraging corruption.”
According to them, in the new pre-export requirements, the Central Bank of Nigeria wants an export transaction to be initiated through eNXP processing on the trade monitoring system.
After which exporters are expected to have a pre-shipment inspection agent, the Nigeria Customs Service and other designated government agencies carry out their pre-export inspections.
The exporters said the pre-shipment inspection agent was expected to issue a clean Certificate of Inspection while Customs would issue the Single Good Declaration. All these they said takes time and delay goods from leaving the country on time.
Pointing to a recent report, they said about N868 billion worth of goods bound for export were stuck at the ports due to the new policy.
Speaking further Rabiu said, “For example, for the PIA to issue the CCI, the exporter is required to upload a certificate of origin as one of the supporting documents for the eNXP.
“The PIA is also required to upload the CCI to the TRMS(M) and until this is done, the Customs service will not issue the Single Good Declaration.”
He added, “After issuing the SGD, the customs is further required to upload it into the TRMS before the goods are allowed to be gated into the port and loaded on the vessel by the shipping line.”
Ardova Plc in Talks to Acquire Enyo Retail and Supply Limited
Ardova Plc, Nigeria’s leading integrated energy company, has commenced discussions to acquire Enyo Retail and Supply Limited.
According to the statement issued and signed by Oladehinde Nelson-Cole, Ag. Company Secretary/General Counsel, Ardova Plc, Enyo is one of the newest and fastest-growing retail and supply companies in the downstream sector.
It stated, “This announcement is pursuant to the acceptance in principle of AP’s offer and acquisition framework by the shareholders of Enyo, it is subject to the successful completion of a due diligence exercise and the receipt of all required regulatory approvals.”
“This announcement is pursuant to the acceptance in principle of AP’s offer and acquisition framework by the shareholders of Enyo, it is subject to the successful completion of a due diligence exercise and the receipt of all required regulatory approvals.”
Speaking on the yet to be completed deal, Mr. Olumide Adeosun, CEO, Ardova Plc, said upon completion, Ardova will retain the Enyo branded stations which will operate side by side with the Ardova brand while simultaneously leveraging on the strengths of Ardova and its group companies.
He added that the two companies are determined to conclude the deal by the end of Q1 2021.
Enyo presently operates over 90 stations across the nation and attends to over 100,000 retail customers on a daily basis.
Ardova Plc and Enyo Retail & Supply Limited promised to furnish stakeholders with more information on the progress of the deal.
Finance4 weeks ago
Central Bank Closes 42 Microfinance Banks
Technology4 weeks ago
Here is how to Link Your National Identification Number(NIN) to Your SIM Card
Finance4 weeks ago
Zenith Bank Invests Over N12 Billion in Targeted Interventions, Posts N178 Billion PAT
Crude Oil4 weeks ago
Senate Pegs Oil at $40, Forex at N379/US$ as it Passed the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper
Finance4 weeks ago
CBN Closed All Naira Accounts of IMTOs
Cryptocurrency3 weeks ago
US Securities and Exchange Commission Goes After Ripple(XRP)
News2 weeks ago
Heartbroken American Mistress Displays Dangote’s Buttocks in a Viral Video
Crude Oil4 weeks ago
Brent Crude Oil Dropped 1.9 Percent Amid Fast-spreading New Coronavirus