Porsche Centre Lagos
Whilst the average African will probably drive a Nissan, Toyota or a Kia, those with the disposable income and the preference for luxury will usually choose something from the luxury European market. The affluent African will generally be seen driving a Mercedes, Range Rover, Porsche, Audi or BMW, with the odd Bentley or Ferrari thrown in for good measure. Although South Africa currently provides the biggest market for the luxury car industry, with established dealerships present throughout the country, the rest of Sub-Saharan Africa, previously perceived as too small a market is now seeing the emergence of luxury car brands emerging in locations which are experiencing growth linked to oil revenue. Porsche have opened dealerships in Lagos, Nigeria, Accra, Ghana and Luanda, Angola.
Porsche Centre Accra
BBC reporter Komla Dumor reported last year on the demand for luxury cars in Luanda, highlighting how particular luxury models are selling within 24 hours of being placed on the showroom floor. Most luxury cars are imported into the African market and therefore subject to taxes, in Ghana this consists of duty which starts at 5 % of the value of the car, depending on the engine size, and an additional 12% VAT. In Nigeria importation duty is currently 20%, so having showrooms located within the African market should make the process of purchasing a car a more palatable experience. However Africa is still largely a cash economy, vehicle financing is relatively limited and those who are not fortunate enough to be able to purchase a car from the Porsche dealership, where in Lagos prices currently range from 21 million naira ($133,000) to 30 million naira ($190,000), finance will need to sourced via a bank loan, which typically only funds 60% to 70% of the vehicles value, the bottom line is although the luxury market is broadening within the African market cash is still king.