Chinese brands have taken over truck market — Taiwo Shittu, ED, Lanre Shittu Motors – Newstrends
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Chinese brands have taken over truck market — Taiwo Shittu, ED, Lanre Shittu Motors

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Executive Director of Lanre Shittu Motors, Mr Taiwo Shittu, speaks on high cost of vehicles, used vehicle imports and quality of Chinese brands, among other issues relating to the auto industry in this interview with some journalists in Lagos including NewsTrends

 

How has it been running an auto assembly plant in Nigeria?

We started our auto assembly plant in October 2018. So far, it has been a good experience for us. It has been smooth running the plant. We have two plants now; one for the truck, the other is the car assembly section.

The truck plant just won the Best Auto Plant of the Year Award in Nigeria at the Nigeria Auto Journalists Awards. I can tell you that it was based on merit. No one in the auto industry can fault it. We all know who is doing what. Our turnaround in terms of operation is high. The assembly is always busy with activities with a lot of local content. We make sure we patronise local steel industry. Most of the hard body is being done here by young Nigerians; you won’t believe the capability of these young Nigerians. They are young Nigerian engineers who have passion for what they do.

The plant is doing well.  Right now, we are looking towards its expansion. We just got a grant from the Central Bank of Nigeria, CBN, at a single digit interest rate to expand our plant. That is where we are now.

Is the car plant in the same location with the truck plant?

Yes. They are both at the Amuwo, Lagos.

 

How much of local content do you incorporate into assembling of vehicles now?

Right now, we source our steel from the local market. For instance, the back body/trailer body, the tipping bucket, the diesel tanks are local content; they are mainly fabricated there. We make sure we patronise indigenous companies for these materials. The same goes for our lubricants and grease. You will be surprised what some of these young Nigerians are capable of doing. Nigerians have the skills. They just need the support of the government; this is what will make the industry to develop.

The current generation of leaders must invest and make sacrifice for the development of the next generation just like the Chinese did. In those days, many people looked down on the Chinese and derided them for looking haggard and wretched. What they did not know was that they were making sacrifice for the current generation. Today, the China’s story has changed. Nigeria also needs to do the same.

Why are the locally-made/assembled vehicles still expensive and beyond the reach of the common man?

The price is still tied to imports in some way. The effect of the COVID has taken the freight rate of imported containers from about $2,000 to $16,000 and above. And that has had a significant effect on pricing of products in Nigeria. This is because most of the things we use (vehicle components) are imported from China.

And that is why I fault the media team of this government. It has failed to enlighten the public on why things are generally expensive in Nigeria.

Freight rate accounts largely for why things are expensive right now. Freight rate from China has gone up astronomically after COVID; it had never happened before. Our company is 40 years now; this is the first time freight rate will cost so much. Bringing in a container of 40 feet from China used to be around $2,000 to $3,000. It is now over $16,000.

This is what the media team of the government needs to let the people know.  The current high cost of things is caused by external factor that the government has no control over. The world is facing it. It is not only in Nigeria.

The dollar or exchange rate has its own issue, but it is minimal compared to this external factor of high freight rate.

Is there anything the business community or government can do about this problem?

It is not a deliberate action. It was precipitated by COVID-19. What happened was that at the peak of the COVID infection, many people were falling sick and some dying; a lot of containers were abandoned midway on the high sea. Now, many of the containers are not back at their bases, making them to have shortage of containers. And when the demand is high, the supply is low, the result is high price.

The solution is to work on returning the containers to their home countries and ease the shortage.

Are the products being made here of the same quality with those produced abroad?

They are of the same quality. Everything is regulated by the parent company. But nobody gets to the top overnight. I will take you back to China; they did not get to where they are now overnight. Nigeria was better than China in the ‘70s. Today, China has become a reference point because their former leaders made sacrifice for the present generation. Our own leaders too must be ready to make such sacrifice. It will be tough, but the result will be sweet victory. Industrialisation is the key to economic success of any country.

Are Nigerians not making enough sacrifice already?

This has to be consistent and it should cut across all strata of the society, the followers and the leaders. There is so much greed in the system. It’s in Nigeria you see people at a buffet packing food without any thought about those waiting in a queue yet to eat.

What has been the response of people to the JAC trucks being assembled in your factory? How many have you sold?

The response has been very encouraging. We’ve sold thousands. When we signed the dealership of the truck in 2014, it was rated number 9.

But today, we are the third highest selling heavy trucks in Nigeria. But when it comes to quality, people know it is JAC truck.

Are you saying Chinese trucks are leading the truck market in Nigeria?

Yes, they have taken over the market; it’s not only in Nigeria; it is everywhere.

Is this a function of low price?

Not just low pricing but it is also in terms of quality. The truth is that the Chinese brands have come to stay. In the area of truck, you either align with them or you get out of the business. They are getting better every day and these trucks are working (well). We have a lot of key players using the trucks. How many of these European trucks can you see on the road?

What is your assessment of the National Automotive Design and Development Council (NADDC) as an agency of government expected to facilitate your business?

I must say the agency has been very amazing, especially under the leadership of Jelani Aliyu as its director general. He is very sound; he has played in the big boys’ league in the US. I’m not surprised that he is performing well. We are getting a lot of support from him because he believes in this industry. I must say that with someone like him, we’re going to get there.

Government must give him more listening ear. We are lucky to have him. He is an asset to Nigeria. He has tried it in America and it worked; it will work in Nigeria too.

What has been the contribution of Lanre Shittu Motors to Nigeria after 40 years of the company’s establishment?

The company has contributed a lot to the Nigerian economy, especially when it comes to manpower, training and empowerment of young Nigerians. We have an empowerment scheme for school leavers, who have passion for automotive development.

They are trained for a period of four years and get paid even while on training. After the training, we send them to our customers across the country to service them. We ask them to get them employed, accommodated and be paid well. In some cases, they are given a car and placed on a good salary that we dictate.

We are getting good testimonies from those we sent to Kano, Bauchi, Ondo and Cross River states, among others. These are people that would have been bus conductors, touts or motor boys, now heading a facility of 300 to 500 trucks.

Those who own these trucks know that these guys taking care of the valuable vehicles are as important as their expensive trucks. Lanre Shittu Motors has done miraculously well to young Nigerians in the engineering sector, making them to actualise their dreams in life.

We have the graduate empowerment scheme too, with a different package. They are also trained for a period before we send them out to people who need their service. We have some people sending interested young graduates and school leavers to us for training.

For instance, Desmond Elliot, a member of the Lagos State House of Assembly, sent 10 people from his Surulere constituency to us for the scheme.

We just got a grant from the government. They have seen that what we are doing is extensive. Government did due diligence before giving out the loans. We are one of the best indigenous companies in the automobile industry.

We believe strongly in this auto policy that will make Nigeria a hub for auto producing vehicles in Africa. Government’s representatives have visited our factories a number of times and they have seen that we mean business. The plant is always busy. And in the auto industry, we are the only company that got the loan in the first set they just released.

What is your view about the crash in import duty of used vehicles by the government?

If we believe in Nigeria, we must do away with used vehicles. It’s part of the sacrifice that we need to make. We can start by making it look unattractive to reduce the volume being imported. We have to look for a good finance scheme to support the new vehicle purchase. It is not that Nigerians don’t like new vehicles; it is because finance is not there. And where there is a finance arrangement, the issue is the cost and how to pay back. If I’m buying a car on loan for my comfort, I may be sceptical about how to pay back without a reliable income. Government should therefore focus more on how to finance the commercial segment of new vehicles’ purchase. Since the vehicles are going to be used for business, it will be easy to pay back the loans. This will also generate more employment opportunities for the people. Giving a loan to anyone to buy a vehicle that will be used for business is like an asset that will bring back money. There is no way you will buy a new truck on loan for a business venture and you will not make back the money in one and a half years. And in the case of trucks, they will still be on the road for 15 years or more. Look at the farmers in the North producing tomatoes and others, most of these perishable food items get destroyed in the farm because they cannot afford the high cost of transporting these goods to the big markets in the cities like Lagos and Abuja. The cost of moving the items from Kano to Lagos can be as high as N1 million. How many of these peasant farmers can afford that? But if the government can have a finance scheme for new commercial vehicles, they would be able to buy the vehicles and promptly move the goods to Lagos, Ibadan, Port Harcourt, Aba, Onitsha, Abuja and those places with high population. More people would be encouraged to return to the farm and do more.

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Chery relishes impactful presence at 2024 Lagos Trade Fair, says it’s a resounding success 

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November 14, 2024

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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.”

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Toyota by CFAO surprises customers with free Hilux, motorcycles, all-expense-paid trip to Seychelles

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4 days ago

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November 11, 2024

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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.

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NAJA okays December 11 for 2024 Nigeria Auto Awards 

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4 days ago

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November 10, 2024

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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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