Mecho Autotech, a Nigerian platform offering global auto spare parts and vehicle repair and maintenance services, will launch v2.0 of its vehicle management app that connects vehicle owners with qualified and verified mechanics during the third quarter of this year.
Mecho will also launch Mecho Mart, a marketplace for high-quality aftermarket and original OEM parts for wholesalers and business fleet owners.
The soon-to-be-launched products signal a shift in strategy as Mecho seeks to double down on improving Nigeria’s fragmented and informal $6 billion auto aftermarket, which is characterized by poor auto parts and stock frequent
Among its new features, customers can access financing to pay for vehicle repairs and maintenance to preserve their cash flow.
After undergoing an easy and quick verification process, eligible customers can receive overdrafts of up to N10 million, which are deposited into the Mecho app wallet.
Customers also have more flexible service options – they can drop off their vehicles at any of Mecho’s 100 partner workshops in Lagos, Abuja and Port Harcourt, or arrange for collection.
In the new and improved Mecho 2.0 app, customers can track all their expenses, maintenance requests and vehicle history.
Corporate fleet owners can manage multiple mechanics, including Mecho and other third-party service providers, to streamline the maintenance and repair process in one easy-to-use app.
Mecho will also implement an IOT integration that will allow corporate fleet owners to track their vehicles. The vehicle management application 2.0 will be free.
Also in the third quarter, Mecho will launch Mecho Mart, a marketplace for high-quality aftermarket and original OEM parts for wholesalers and business fleet owners.
Customers will be able to purchase genuine auto parts such as tires, shock absorbers, brake pads, lubricants and filters. Through the marketplace, parts wholesalers can stock inventory with premium parts, secure financing, and increase profits by avoiding inventory.
Backed by Global Brains, a Japanese venture capital firm that invested a seven-figure sum in the company, Mecho Autotech aims to partner with global auto parts manufacturers to source genuine and affordable spare parts to build a supply reliable spare parts for vehicles. chain in Nigeria.
“When we launched two years ago, we focused on providing high quality vehicle maintenance services. But over time we learned that we needed to prioritize fixing the broken auto parts supply chain, a more pressing problem in the industry and a bigger driver of its value.
Spare parts account for $6 billion of Nigeria’s $8 billion vehicle aftermarket. Since turning our business around, we have served over 50 corporate fleet owners and parts wholesalers and have provided parts from 5 global car manufacturers.
By improving the availability of high quality spare parts, we believe we can play a role in improving vehicle longevity and road safety for Nigerians.” said Olusegun Owoade Mecho Autotech CEO / Co-Founder.
Nigeria has over 12 million registered vehicles, of which over 90% are imported used vehicles. Given the predominance of used vehicles, the automotive aftermarket industry is highly fragmented and informal with a broken parts supply chain.
Parts wholesalers have difficulty accessing original, high-quality parts, and suffer from frequent stock-outs as they cannot access the working capital to purchase inventory.
Despite its informal and fragmented nature, Nigeria’s auto maintenance and aftermarket market is valued at about $8 billion.
The average Nigerian vehicle owner spends between $50 and $60 a year on repairs and maintenance, of which 80% is spent on spare parts.
Please visit here to demo version v2.0 of vehicle management application. Spare parts wholesalers can register for the Mecho Autotech Mart waiting list here.
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