China’s TIM Motors wants to end Tokunbo dominance in Nigeria with budget friendly cars

A Chinese automaker that has spent years selling heavy-duty trucks in Nigeria has launched a line of passenger vehicles to take on the dominance of second-hand imports in Africa’s largest economy.

TIM Motors, best known for selling FAW, Sinotruk, and Shacman trucks, is betting that it can convert a nation of used-car drivers into new-car buyers with aggressive pricing and local investment. The company aims to disrupt a market where fewer than 5% of buyers purchase new vehicles, a segment currently estimated at just 15,000 units annually.

“We want to replace 10% to 20% of Nigerian used cars with Chinese new cars,” Leon Zhan, Chief Executive Officer of TIM Motors, said at a launch event in Lagos which held Saturday. He projects that new car ownership could expand to 50,000 users within three years.

The move is a direct assault on Nigeria’s sprawling “tokunbo” (second-hand) market, which imports an estimated 500 to 600 vehicles from North America monthly—many with what Zhan describes as “questionable quality and a lack of transparency.” In China, at least 30 new million cars are sold yearly, and Nigerians can latch onto this opportunity to cop new cars with AI capabilities over luxurious brands, which can be costly to acquire. A successful market entry could swell China’s export volume to Nigeria. In May 2025, Nigeria’s exports to China were valued at $252 million, while imports from China reached $2.24 billion.

TIM’s strategy hinges on undercutting established Japanese rivals. Zhan, also a partner at the auto-focused private equity fund Shanghai Zeal Capital, showcased the company’s MGHS SUV at $38,000, which is well below the Toyota RAV4’s retail price of $45,700. Its larger MG RX9 SUV is priced at $48,000, compared to Toyota’s $65,300 Fortuner. The cars feature petrol, EVS, and hybrids. The entire gamut includes small to big sedans as well as small to big SUVs.

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To sweeten the deal for corporate clients, government agencies, and upwardly mobile Nigerians, the cars come with a five-year warranty and a financing partnership with Chinese finance giant C&D.

The company is moving swiftly to build a physical presence. Showrooms and technical support centres in the affluent Lagos districts of Ikeja and Victoria Island are scheduled for completion within two months. A plan for a local assembly plant in Abeokuta is slated for 2026, alongside a program to train 200 mechanics to build a nationwide service network.

“For Nigeria, the population is the largest in West and East Africa,” Zhan said. “The environment is very robust, and we have strong confidence.”