Auto
Auto assemblers blame FG as more government-approved vehicle plants go down
Stakeholders are worried that majority of over 60 automobile assembly plants licensed by the Federal Government over a period of nine years since the introduction of a new auto policy in Nigeria have been forced to close shop.
Precisely, Deputy Managing Director of CFAO Motors, Mr Kunle Jaiyesimi, said recently that only six of the registered auto assemblers are still running, working haphazardly.
Indeed, he said his company, CFAO Motors, which invested heavily in setting up a world-class Mitsubishi assembly plant in Lagos to churn out the brand buses and trucks had today converted the edifice into after-sale service centre.
The hope was high that Nigeria was on the path of total transformation in 2013 when the auto policy was introduced under the Goodluck Jonathan administration. The target was that the country was about to become the hub of West and East African auto industry producing new vehicles not only for Nigeria’s teeming population and high need to supplying to all the West and East African countries.
Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo, said ahead of 2020 Argungu fishing festival and motor rally has that following the launch of the Nigeria Automotive Industry Development Plan ( NAIDP) in 2013, about 62 companies had been registered to assemble vehicles at both SKD and CKD levels, with a total installed capacity of 423,790 units.
But that enthusiasm, according to automakers, has thawed away and replaced with frustration and regrets.
Even Adeniyi gave the running plants could only boast of actual assemblage of 10, 343 units, a far cry from the target of 400,000 units annually.
Executive Director, Nigeria Automotive Manufacturers Association, Remi Olaofe, speaking in Abuja at a recent Auto CEOs Forum, said there was no way the local auto assemblers could break even without any serious support and patronage from the government.
“Nigerian auto operators are doing their best but they are not being encouraged at all. No single tyre is being manufacturer in the country since the exit of Dunlop and Michellin. How do we bring them back? What do we tell them? Nobody is in business to make losses. I do business to make money, not on sentiment.
“Many have invested billions in this auto business and we are not doing anything to support and keep them in business.”
Olaofe accused the Nigeria Customs Service of being “a pain in the neck of this business,” adding that they had practically ruined the business.
“Look at all the auto assembly lines of the plants in the country, they are virtually idle. People are allowed to cut corners and play the trick of winners take all and many are shut out. Nigeria ultimately loses. We don’t have correct industry data because of unhealthy rivalry in the business,” he said.
He also said, “The NADDC will not allow NAMA to function because NADDC is deriving pleasure in assemblers coming directly to it for aid. The Ministry of Finance will not allow NAMA to work because it wants operators to come to them individually with their problems so they could be ‘appreciated’.
“Look at Rwanda, they have overtaken us. What is the population of Ghana? It is now the toast of auto manufacturers and allied products’ investors. Every single auto assembler now is on its way to Ghana. “There is no need lying to one another. If we must develop the nation’s auto industry, we should do so genuinely.”
Chief Executive Officer, Nord Automobiles Limited, Oluwatobi Ajayi, maintained that the nation’s approved plants had the capacity to produce sufficient number of vehicles to cater for its immediate need only if there would be continuous patronage, duty rebate and tax holiday.
For instance, he said his assembly plant currently producing five vehicles per day could increase the number to 25 vehicles with the right support and raise it further to 50 per day with two shifts of operation.
The operators at the Abuja forum accused the Federal Government of failing to sign the enabling auto bill into law to support the business.
They also claimed that the Finance Act of 2020 introduced by the FG that reduced import duty on fully built vehicles to the same rate as Semi-Knocked Down components made it difficult for local assemblers to compete with FBU importers/dealers.
Jaiyesimi said, “There is no way we can compete with fully built vehicles that are coming into the country. Before, the import duty on FBU truck was 25% and suddenly they it was dropped to 10%, the same rate for SKD components of truck.”
He also berated some policymakers in government of jumping out of the country to hold crucial meetings with vehicle manufacturers without discussing with Nigeria’s representatives of those foreign companies.
He said, “We should not be thinking about estacode (travel allowance) in most cases. We should look at how things can work in this country.
“What is the fate of the auto policy now? When this initiative started in 2014, some of us raised concern then that it is not enough for some people to just wake up and put up a position paper about the industry without consulting widely the industry players and stakeholders.”
The current NADDC Director-General, Mr Jelani Aliyu, says the bill auto policy is undergoing some review and he is optimistic that it will be signed into law before the end of the year.
Since 2019, Aliyu had said the Automotive Industry Development Bill passed by the eighth National Assembly was awaiting the President’s.
Aliyu in an interview with the Punch then gave the names of nine firms assembling vehicles in the country as Peugeot Automobile Nigeria, Nissan Motors, Honda Motors, Innoson Vehicle Manufacturing Company, Hyundai Motor Company, Ford Motor Company, GIC Motor Companies Ltd, JAC Motors and Kia Motors.
Nissan, Honda and Hyundai are operating under Stallion Autos which took over the old VON plant in Lagos.
President Muhammadu Buhari failed to give assent to the bill when it was sent to him at the beginning of this year due to some reported discrepancies and had to send it back to the National Assembly for a rework.
A few weeks ago, Aliyu said a revised national auto legislation that would fully guarantee investments in vehicle assembly plants, leading to a halt in importation of new and used automobiles would be enacted.
He told journalists in Sokoto that the NADDC was in talks with companies such as Toyota and Volkswagen to come and directly set up their production plants in Nigeria.
“The council is working to effectively implement an automotive policy agenda, with a view to bringing these companies back to Nigeria. They want to have a guarantee that regardless of whichever government is in power their investments will be protected,” Aliyu said.
But a former acting DG of the NADDC, Mr Luqman Mamudu, said there was nothing wrong with the auto policy, adding that adequate consultations and visits to countries for model examples were made with stakeholders when the policy document was being put together.
He however accused some self-serving auto operators of fielding the policymakers under the Muhammadu Buhari administration with lies about the policy, leading to the back-and-forth approach on the President’s assent for the bill.
The Comptroller General of the Nigeria Customs Service, Col. Hameed Ali (retd.), represented at the CEOs Forum by Controller Musa Mba, said the agency only implemented the duty as directed by the finance ministry and the National Automotive Design and Development Council for industry with regard to vehicle imports.
He stressed the need for the genuine operators to be united and keep engaging the finance ministry on the duty issue.
Auto
Chery relishes impactful presence at 2024 Lagos Trade Fair, says it’s a resounding success
Chery relishes impactful presence at 2024 Lagos trade fair, says it’s a resounding success
Days after one of the biggest trade shows in Nigeria ended, talks about the spectacular displays, special products on offer and which companies did what at the 2024 Lagos International Trade Fair are still reverberating in the business industry in and around the nation’s commercial capital.
After staging one of the most outstanding displays at the fair, Carloha, sole representative of Chery vehicles in Nigeria, has declared that the 2024 Lagos International Trade Fair was a resounding success for Chery.
The fair held from November 1 to November 10 at Tafawa Balewa Square (TBS) in Lagos was attended by businesses from various sectors.
Chery made a commanding impression with a display of its array of vehicles that captivated attendees.
Chery’s lineup at the place featuring the Tiggo 8 Pro, Tiggo 4 Pro, Tiggo 2 Pro, and Arrizo 5 — easily became the highlight of the event, drawing admiration from automotive enthusiasts and industry experts alike.
Carloha Nigeria in its assessment of the show notes that the enthusiastic response from attendees reflected Chery’s alignment with the values of Nigerian consumers: durability, efficiency and style.
Indeed, it says the presence of Chery at the fair reinforced the brand’s status as a leader in innovative and high-quality vehicles.
“Chery’s presence at the fair signals its commitment to supporting Nigeria’s automotive industry growth,” it states, adding that the brand looks forward to continuing its journey with Nigerians seeking reliable and stylish vehicles that elevate their everyday driving experience.
Chery showcased the unique strengths and aesthetics of each of its models, with the Tiggo 8 Pro taking centre stage.
Tiggo 8 Pro
Known for its luxurious design and cutting-edge technology, the Tiggo 8 Pro made a lasting impact on attendees looking for a blend of sophistication and performance in an SUV.
Auto enthusiasts and prospective buyers were particularly captivated by the model’s spacious interior, high-quality finishes, and suite of intelligent features, which align with Chery’s reputation for engineering excellence.
Tiggo 4
For those interested in compact SUVs with versatility and style, the Tiggo 4 Pro was an instant hit.
Its sleek design, fuel efficiency, and advanced safety features resonated with visitors seeking a reliable yet stylish vehicle for urban and adventurous lifestyles alike.
The Tiggo 4 Pro’s appeal lies in its balance of form and function, and this resonated with young professionals, families, and automotive aficionados who stopped by Chery’s exhibit for a closer look.
Tiggo 2 Pro
The Tiggo 2 Pro also attracted significant attention at the fair.
Known as a stylish, compact SUV with a bold, urban design, the Tiggo 2 Pro struck a chord with those looking for a vehicle that combines affordability with aesthetic appeal and performance.
Its smaller size, combined with a powerful engine, makes it an ideal choice for city driving, and visitors were impressed by its efficient fuel consumption and user-friendly tech features, making it a perfect fit for Nigeria’s dynamic city life.
Arrizo 5
Arrizo 5, Chery’s stylish sedan that combines efficiency with cutting-edge technology, was part of the impressive lineup.
Many attendees were taken aback by the Arrizo 5’s seamless integration of petrol and CNG technology.
This appeals to those looking for sustainable and budget-friendly commuting options.
The sedan’s advanced safety features, plush interiors, and fuel efficiency made it a strong contender for those prioritizing both style and sustainability in a vehicle.
This year’s Lagos International Trade Fair saw an unprecedented turnout, with thousands of visitors exploring the diverse offerings from local and international brands.
Chery’s display not only highlighted the brand’s innovative automotive designs but also underscored its commitment to Nigeria’s automotive market.
The foot traffic at the Chery stand was a testament to the brand’s growing appeal, as well as Nigeria’s evolving automotive landscape, where demand for high-quality, dependable vehicles continues to rise.
Engagement with visitors
Beyond showcasing vehicles, Chery’s team engaged with visitors to explain the unique benefits of each model and answer questions.
This helped create a personal and informative experience for everyone who stopped by.
From live demonstrations to interactive sessions, Chery provided an immersive experience that helped attendeesj job understand the full scope of features each model offers, strengthening the brand’s connection with potential customers and automotive enthusiasts.
Carloha’s Sales Director, Mr. Joseph Omokhapue, says to make Chery ownership easy and affordable, highlighted their exclusive offers: a 6-year free service plan, 6-year/200,000 km warranty, and flexible auto financing options.
“These benefits are at the core of Carloha’s commitment,” he said, adding, “With fair pricing, nationwide 24/7 parts and service support, our customers can enjoy their Chery vehicles with complete peace of mind.”
Auto
Toyota by CFAO surprises customers with free Hilux, motorcycles, all-expense-paid trip to Seychelles
Toyota by CFAO surprises customers with free Hilux, motorcycles, all-expense-paid trip to Seychelles
Buyers of brand new Toyota vehicles in Nigeria from Toyota by CFAO at this period are up for unprecedented pleasant gifts as part of the company’s end of the year package.
Toyota by CFAO, an official distributor of Toyota vehicles in Nigeria, in a statement announced the exciting end-of-year bonanza to reward both new and existing customers.
It listed the prizes on offer as free Toyota Hilux pickups, Yamaha motorcycles, and an all-expense-paid trip to Seychelles.
The promotion, it says, is open to corporate and individual clients.
It specifically states that the End-of-Year Bonanza features four main categories of rewards: Buy 5 units of the Toyota Coaster bus and receive a free Toyota Hilux pickup; or Buy 15 units of either the Toyota Hiace Mid Roof or Toyota Hilux Prerunner and get a Toyota Hilux pickup at no additional cost.
The second category is the offer of a Free Yamaha Motorcycle, in which a buyer automatically receives a Yamaha motorcycle for free on the Purchase a Toyota Hilux, running on diesel.
For the third category, the company is sponsoring an All-Expense-Paid Trip to the Seychelles for those who purchase any of the following Toyota models: Toyota Land Cruiser Prado, Toyota Land Cruiser 300, Toyota Fortuner, or Toyota Camry.
In the last category, customers will win a return ticket to the Seychelles for the Purchase a Toyota Corolla Cross or Toyota RAV4.
To participate, it says customers simply need to visit the Toyota by CFAO website at www.toyotabycfao.ng and follow the registration process.
The company says since the promotion is valid while stocks last, it advises early participation.
It says, “All the Toyota products offered as prizes are renowned models.
“The Toyota Hilux, which is known for its strength and durability, boasts advanced chassis and bodywork, making it the ultimate choice for tough tasks, with more than 50 years of proven power.”
The Toyota Hiace is a versatile vehicle with a 2.7L engine, perfect for both cargo and passenger transport in urban and rural areas; while the Toyota Coaster which is ideal for group travel, offers a spacious cabin and reliable transport for passengers with capacities of 2.7L or 4.2L.
Toyota by CFAO says the promotion, which kicked off on November 1, 2024, provides a unique opportunity for customers to drive away with top-quality Toyota vehicles and win exclusive prizes.
Managing Director of Toyota by CFAO, Mr. Boye Ajayi, stresses the company’s dedication to providing high-quality, tropicalized Toyota vehicles and superior after-sales service.
He encourages Nigerian car buyers to take advantage of the promotion as a way to acquire vehicles designed for the country’s specific needs.
“We are proud to offer Toyota vehicles built specifically for the Nigerian market. Our range includes city cars, sedans, family vehicles, SUVs, pickups, and light commercial models.
“Toyota vehicles are recognized worldwide for their safety, fuel efficiency, and cutting-edge technology, and they come with a 3-year warranty for added peace of mind,” says Ajayi.
The company says it remains committed to offering a wide selection of vehicles designed for both urban and rural environments, backed by exceptional after-sales service.
“Toyota by CFAO is dedicated to ensuring customer satisfaction and delivering high-quality products for Nigerian drivers,” it adds.
Auto
NAJA okays December 11 for 2024 Nigeria Auto Awards
NAJA okays December 11 for 2024 Nigeria Auto Awards
The Nigerian Auto Journalists Association (NAJA) has fixed December 11, 2024 for this year’s Nigeria Auto Awards holding at the renowned Oriental Hotels, Victoria Island, Lagos.
The event starting at 6pm, with invited guests coming from across the country’s automotive industry, including manufacturers, assemblers, dealers and automobile components/parts producers as well as influencers.
The NAJA Auto Awards is a key event in Nigeria’s automotive calendar, celebrating the best vehicles, innovations, and industry figures that have shaped the current year.
The award event will honour exceptional achievements in design, technology, sustainability, and overall impact in the sector.
In a statement, NAJA highlighted that the awards are the result of months of thorough planning and collaboration with industry experts, ensuring the event remains a credible platform for recognizing leaders in Nigeria’s fast-evolving automotive landscape.
Chairman of the 2024 Auto Awards Committee, Theodore Opara, emphasized that the timing of this year’s ceremony is especially significant as the industry is experiencing a rapid transformation, particularly in the areas of electric vehicles (EVs), compressed natural gas (CNG)-powered vehicles, and eco-friendly vehicle technology.
“We’re incredibly excited to gather Nigeria’s top automotive minds and brands on December 11 to recognize the vehicles and individuals who have truly made an impact,” Opara said.
“This year’s awards will reflect the shifting dynamics of the industry, particularly with the growing importance of electric and sustainable mobility solutions. Our aim is to shine a spotlight on the innovations that are driving Nigeria’s automotive sector into the future.”
The NAJA Auto Awards will feature a variety of competitive categories, such as Car of the Year, Truck of the Year, Best New Electric Vehicle, Luxury Brand of the Year, and Best Auto Tech Innovation.
Other categories will recognize standout achievements in vehicle design, safety, and sustainability.
Opara also pointed out that the selection process for the awards would be rigorous, with a panel of expert judges, including NAJA’s network of experienced automotive journalists, evaluating each nominee across several criteria, such as performance, innovation, environmental impact, and technological advancement.
Mike Ochonma, Chairman of NAJA, emphasized the dramatic shifts occurring within the industry.
“The automotive world is changing at an unprecedented pace. From the rise of electric powertrains to CNG-powered vehicles, the 2024 awards will highlight the most forward-thinking products that are leading the change in shaping the future of mobility in Nigeria,” said Ochonma.
“We’re committed to ensuring that the awards recognize the true pioneers—those companies and vehicles pushing boundaries and setting new benchmarks.”
The event promises to be an evening of celebration, with special presentations and a showcase of some of the most notable nominees.
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