Nigeria Targets Additional 70,000 Annual Vehicle Output, West African Export with Hybrid Motors, Chinese Firm EV Deal

Launch Design Shanghai and Hybrid Motors Nigeria have signed a strategic partnership agreement to establish electric vehicle manufacturing plants in Lagos and Abuja, a move expected to raise Nigeria’s annual vehicle assembly capacity by 70,000 units and strengthen automobile exports to neighbouring West African countries.

The agreement, signed in Shanghai on May 8, 2026, will drive the production of “Acely,” Hybrid Motors Nigeria’s indigenous vehicle brand designed specifically for Nigerian roads, climate and mobility needs.

The collaboration is being positioned as a major boost to Nigeria’s automotive industrialisation drive, with the two firms aiming to transform the country into a regional hub for vehicle production and export.

Under the partnership, the companies will develop two manufacturing facilities with a combined annual production capacity of 70,000 vehicles at full operation.

The Lagos plant, located along the Lekki-Epe corridor, will serve as the main production and assembly centre with an installed capacity of 50,000 units yearly.

Its proximity to the Lekki Deep Sea Port is expected to support large-scale exports to regional markets including Ghana, Benin Republic, Togo and Côte d’Ivoire.

Industry stakeholders believe the export-oriented facility could significantly expand Nigeria’s automotive footprint across West Africa while reducing dependence on imported vehicles within the region.

The second facility, to be located within the Free Zone Business Area of Centenary Economic City in Abuja, will have an annual production capacity of 20,000 units and focus on supplying Northern Nigeria and neighbouring Sahel markets.

The firms said the dual-plant strategy would improve logistics efficiency, lower production costs and create thousands of direct and indirect jobs across the automotive value chain.

Speaking during the signing ceremony, Chief Executive Officer of Hybrid Motors Nigeria, Mr. Jubril Arogundade, described the project as a defining moment for Nigeria’s automotive future.

“This partnership is more than a business agreement; it is a commitment to building Nigeria’s automotive future,” Arogundade said.

“With Acely, we are demonstrating that globally competitive vehicles can be conceived, designed and assembled in Nigeria by Nigerians for both local and international markets.”

He added that the partnership with Launch Design Shanghai would bring advanced automotive engineering and manufacturing expertise into Nigeria, helping the Acely brand meet international standards while retaining local identity.

Chief Executive Officer of Launch Design, Mr. Wang Xun, said the collaboration would contribute to the emergence of a stronger automotive manufacturing ecosystem in Africa.

“Our turnkey engineering capabilities combined with Hybrid Motors Nigeria’s understanding of the local market create a strong foundation for success,” Wang said.

“Together, we are not only building vehicles but helping to establish a sustainable automotive industry for the region.”

The companies said Acely vehicles would focus on local assembly, energy efficiency and advanced electric and hybrid technologies suited to African operating conditions.

Analysts said the project could stimulate local component manufacturing, encourage technology transfer and deepen technical skills development within Nigeria’s automotive sector.

The initiative is also expected to conserve foreign exchange by reducing vehicle imports while positioning Nigeria as a competitive exporter of made-in-Nigeria vehicles within the ECOWAS sub-region.

Both firms noted that the investment aligns with the Federal Government’s National Automotive Industry Development Plan aimed at increasing local vehicle production, attracting investments and accelerating industrial growth.

“With facilities in Lagos and Abuja serving distinct but complementary markets across Nigeria and the wider region, we are laying the foundation for a new era of mobility that is locally rooted, globally competitive and sustainably driven,” Arogundade added.

ASPMDA Targets Bigger Role in Nigeria’s Automotive Future, vows tougher sanctions against fake parts dealers

The President of the Auto Spare Parts and Machinery Dealers Association, ASPMDA, Ngozi Emechebe, has called for a stronger partnership with the Federal Government to reposition Nigeria’s automotive industry, deepen local production and tackle the menace of counterfeit spare parts.
Speaking with journalists on the sidelines of the West Africa Automotive Show in Lagos, Emechebe said ASPMDA was transforming from a conventional trading cluster into a modern automotive business hub capable of supporting Nigeria’s industrialisation drive.
He said the association was ready to work closely with government agencies and key stakeholders to advance its “Keep Nigeria Moving” vision and strengthen the country’s automotive value chain.
According to him, ASPMDA has evolved significantly from its early days of informal trading into a structured organisation operating from a world-class facility designed to support large-scale automotive commerce and industry collaboration.
“All the time I have been coming to this fair, I have been dreaming of how to launch ASPMDA into the centre of this country,” he said.
“ASPMDA is a highly organised trading association. We have moved from street trading and now we have beautiful, world-class premises.”
Emechebe disclosed that discussions were already ongoing with the National Automotive Design and Development Council, NADDC, on possible areas of collaboration aimed at accelerating automotive development in Nigeria.
He explained that the proposed partnership would focus on creating policies, institutional support and business-friendly initiatives that would improve the operations of spare parts dealers and other local automotive businesses.
“We need government support and partnership. We have a part to play in Nigeria’s automotive development agenda,” he said.
The ASPMDA president also commended the Federal Government’s vehicle financing initiatives targeted at Nigerian youths, describing them as a positive step towards expanding mobility and encouraging participation in the automotive ecosystem.
On the persistent challenge of fake and substandard spare parts, Emechebe said the association had intensified efforts to sanitise the market through stricter enforcement measures and closer collaboration with regulatory authorities.
He revealed that ASPMDA had already allocated office spaces within its complex to agencies responsible for monitoring product standards and combating counterfeit goods.
“We want to make it a cultural matter so that when you violate it, you know where you are headed,” he said.
“If you bring in your product, defend it to the end consumer and stand by it. Adulteration is not allowed.”
Although he declined to disclose the exact penalties for offenders, Emechebe warned that severe sanctions awaited anyone found dealing in counterfeit products within the market.
He also advocated increased local manufacturing of automotive components, insisting that Nigerian-made parts could outperform imported alternatives if produced according to standards tailored to local operating conditions.
“Local production is even better than foreign production,” he said.
“Whatever you want from a person, you must give it a standard Nigerians will see and buy — standards that fit Nigeria.”
Emechebe further disclosed that some ASPMDA members were already involved in the production of automotive components, adding that broader manufacturing partnerships could be explored as the industry expands.
However, he cautioned against poorly managed joint ventures, warning that many business partnerships collapse due to weak management structures and lack of accountability.
The West Africa Automotive Show attracted regulators, manufacturers, dealers and other stakeholders from across the region to discuss emerging opportunities, policy direction and challenges confronting the automotive industry in West Africa.

Auto Imports Drain Nigeria’s Economy as Vehicle Spare Parts Bill Hits N6.54tn

Nigeria’s ambition to build a thriving local automotive industry is facing mounting pressure as the country’s spending on imported vehicles and spare parts soared to N6.54 trillion between 2023 and 2025, raising fresh concerns over the survival of indigenous auto manufacturing.

The Director-General of the National Automotive Design and Development Council (NADDC), Oluwemimo Osanipin, disclosed the figures in Lagos on Tuesday during the opening of the West African Automotive Summit, where industry stakeholders warned that the nation’s dependence on foreign automotive products was deepening despite ongoing efforts to promote local assembly.

According to him, data obtained from the National Bureau of Statistics showed that imports of transport equipment and spare parts rose sharply from N3.15 trillion in 2023 to N6.54 trillion in 2025, representing a 107 per cent increase within two years.

He added that vehicle imports alone gulped more than N4.3 trillion during the period, underscoring the huge outflow of foreign exchange from Africa’s largest economy.

Osanipin said the trend reflects growing consumer preference for imported vehicles amid persistent concerns over maintenance support, spare parts availability, and technical service delivery within the local automotive ecosystem.

He warned that unless Nigeria develops a reliable after-sales structure capable of supporting locally assembled vehicles, the country may continue to struggle with low patronage of domestic brands and rising dependence on imports.

Speaking on the summit theme, “After-Sales as a Growth Engine,” the NADDC boss argued that the future of the automotive sector extends beyond vehicle sales, stressing that maintenance services, warranties, technical support, and customer satisfaction are now central to industry growth globally.

He noted that countries with strong automotive industries built extensive after-sales networks that not only boosted consumer confidence but also stimulated local manufacturing, job creation, and investment.

According to him, weak after-sales systems discourage buyers, reduce repeat purchases, and undermine investor confidence in the sector.

Osanipin also said the transition toward electric and hybrid vehicles makes technical capacity development more urgent, as mechanics and service personnel would require new skills to manage emerging vehicle technologies.

He disclosed that NADDC is currently partnering with industry stakeholders on technical training, skills acquisition programmes, and policy initiatives aimed at improving service standards across the automotive value chain.

The council further urged automobile companies, dealers, and service providers to strengthen customer support systems and expand access to genuine spare parts nationwide in order to improve confidence in locally assembled vehicles.

Industry stakeholders at the summit also called for stronger local content policies, improved maintenance culture, enhanced technical expertise, and greater collaboration across West Africa to drive sustainable automotive growth in the region.