Lagos based Mecho Autotech to launch version 2.0 of vehicle management app and new automotive spare parts marketplace
In the third quarter of this year, Mecho Autotech (“Mecho”) (www.MechoAutotech.com), a Nigerian platform that offers worldwide automotive spare parts and vehicle repairs and maintenance services, will launch a version v2.0 of its vehicle management app that links vehicle owners to qualified and vetted mechanics. Additionally, Mecho will introduce Mecho Mart, a marketplace for premium aftermarket and original OEM parts aimed at wholesalers and business fleet owners. The soon-to-be released items signify a change in strategy for Mecho as it seeks to intensify efforts to improve Nigeria’s $6BN informal and fragmented automotive aftersales sector, which is characterized by poor-quality vehicle spare parts and frequent stockouts.
Customers can now get funding for vehicle maintenance and repairs, preserving their cash flow, as one of its new features. Eligible users can get overdrafts of up to 10 million naira, which are placed in the Mecho app wallet, after going through a simple and quick verification process. Additionally, customers have more flexible servicing options: they can arrange for pick-up or drop-off at any of Mecho’s 100 partner workshops in Lagos, Abuja, and Port Harcourt. Customers can keep track of all their spending, maintenance requests, and car history in the new, updated Mecho 2.0 app. Corporate fleet owners can coordinate the work of several mechanics, including Mecho and other third-party service providers, through a simple-to-use app. Additionally, Mecho will release an IOT integration that will enable fleet owners to track their vehicles. It will be free to utilize the 2.0 vehicle management app.
Mecho will introduce Mecho Mart, a marketplace for premium aftermarket and original OEM parts, for wholesalers and business fleet owners, also in Q3. Genuine auto parts like tires, shock absorbers, brake pads, lubricants, and filters will be available for purchase by customers. By using the market, wholesalers of spare parts can increase their inventory of high-quality parts, obtain financing, and boost profits by avoiding stockouts. Mecho aims to form alliances with international automotive aftermarket spare parts manufacturers to source genuine and reasonably priced spare parts in order to establish a trustworthy vehicle spare parts supply chain in Nigeria, with assistance from Global Brains, a Japanese venture capital firm that invested a seven-figure sum in the company (https://apo-opa.info/44kae3I).
Two years ago, when we first entered the market, we concentrated on offering top-notch auto maintenance services. But as time went on, we discovered that the broken automotive spare parts supply chain needed to be fixed first because it was a more urgent issue for the sector and a more significant driver of value. Out of Nigeria’s $8BN automotive aftermarket, $6BN goes to spare parts. Since changing directions with our company, we have provided replacement parts from five international automotive manufacturers to more than 50 corporate fleet owners and distributors. We think we can contribute to increased vehicle longevity and road safety in Nigeria by expanding the supply of high-quality spare parts, said Olusegun Owoade, CEO and co-founder of Mecho Autotech.
More than 90% of the more than 12 million registered automobiles in Nigeria are secondhand imports. Due to the prevalence of used cars, the aftermarket automobile business is highly fragmented, unorganized, and has a broken supply chain for aftermarket spare parts. Because they lack the working capital to buy inventory, wholesalers of spare parts frequently experience stockouts and struggle to obtain high-quality, original parts. Nigeria’s vehicle aftersales and repair sector is projected to be worth $8BN despite its informality and fragmentation. The average car owner in Nigeria spends $50–$60 year on repairs and maintenance, with spare components accounting for 80% of that total.
To view a demo of the car management app’s version 2.0, go to www.MechoAutotech.com. Wholesalers of spare parts can join the Mecho Mart queue by visiting this page (https://apo-opa.info/41Vwlvz).
