Boost Confidence in Indigenous Industry, Automakers Tell FG
By Adaobi Rhema Oguejiofor
Leaders in Nigeria’s indigenous automobile manufacturing and foreign brands assembling sector have highlighted the government’s lack of confidence in the country’s automobile industry as one of the major challenges faced in the industry.
The Chairman of Innoson Group, Chief Innocent Chukwuma, stated that the lack of confidence in the indigenous automobile industry in Nigeria by the government and its officials was a challenge these companies battle with. He added that the high tariff and irregular supply of electricity have further frustrated the efforts of the automobile companies in the country.
Chukwuma disclosed this while speaking with journalists recently at his company’s plant in Nnewi, Anambra State. He explained that with the removal of subsidy on petrol, the patronage of indigenous automobile companies was expected to receive a boost. He said that the company has the capacity to serve Nigeria and other regional countries through its plant.
The Innoson Boss explained that anyone promoting the importation of vehicles would be doing so at the peril of the economic growth of Nigeria. He emphasized that the importation of vehicles would only add more pressure on the naira, while the quest for foreign exchange would increase. According to him, Innoson Vehicle Manufacturing (IVM), through its plant manufactures mass transit vehicles, Sports Utility Vehicles (SUV), small buses and others, which are either Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), electric, diesel or Premium Motor Spirits (PMS) powered. He pointed out that IVM could manufacture about 500 units of vehicles monthly, stressing that the company had the capacity to tackle mass transit challenges not just in the country, but in the African region.
“I don’t think there are challenges in the automobile industry because solutions are available. The petrol price has gone up and people will reduce their spending by using buses for work. We have natural gas to power all these buses, we can use normal gas and even if you want electric, which is through charging, we can also produce that. Our factory here can produce any brands of vehicles that you need. We manufacture according to demand. We are manufacturing the small vehicles now because there are demands for them. During the COVID-19 period, what we produced were the ambulances. We are here on ground and any kind of vehicles that need attention in this country, we can produce them. Now, we are producing buses in mass because Nigeria needs it now to make sure that its workers are able to go to their various offices or workshops easily,” he explained.
Chukwuma further noted that the company has CNG, LNG, ordinary gas and fuel powered vehicles, as well as electric vehicles and the company is available to manufacture vehicles for any purpose Nigeria desires. He explained that, although Innoson does not produce engines, it produces the body and buy the system from any company that has the quality materials needed, emphasizing that, Innoson has the capacity to produce for any brand of vehicles.
The Marketing Manager for Dana Motors Nigeria, Mr. Olawale Jimoh, said that the government remained the predominant customer in Nigeria’s automotive industry. He explained that the annual sales of vehicles had declined drastically in the country, leaving the automotive companies at the mercy of government patronage, which is discouraging to the vast majority of the stakeholders who had invested substantially in the country’s economy.
Jimoh lamented that the ditching of Nigerian models by the government and other organizations for foreign brands is having unprecedented negative effect on the naira, thereby leading to reduced buying powers by Nigerians. He noted that, while other countries had supported their local industries and improve their economies, the reverse is the case with Nigeria.
In his words, “South Korea can be used as a reference point where they actively promoted and supported their local automobile industry, thereby helping them to stabilize their local currency. By contrast, when a country heavily relies on imports, as seen in Venezuela, the local currency is bound to experience severe devaluation during economic downturns”.
“In the Nigerian context, the inclination for foreign vehicle imports not only places undue pressure on the naira, but also hampers the growth potential of the local automotive sector. A strategic shift and unflinching support for local industries could not only bolster the currency, but also foster a more resilient and self-sufficient national economy.”
The Dana Motors Director appealed to political office holders to go beyond paying lip services to supporting the local industries, and actually work the talks, insisting that the government had a big role to play in moving the sector forward. He expressed that the auto industry had a huge contribution to the economy as it creates a huge number of employments, as well as contributes to the Internally Generated Revenue (IGR) and diversify the country’s economy when well-harnessed.
“The government has a pivotal role to play in facilitating an environment that is conducive to the growth of local stakeholders, ultimately contributing to a more robust and diversified national economy. It is imperative to move beyond mere slogans and embrace substantive policies and actions that empower local industries, recognizing the crucial role they play in steering the country towards economic resilience and economic sustainability,” he concluded.
Similarly, an industry analyst, Mr. Chris Amokwu, stated that it was important for the government at all levels to look inward and encourage the indigenous automobile players, insisting that the indigenous mobile manufacturing companies had the capacity to solve the mobility problem, but regretted their neglect, which he said had further added to the continuous drop of naira against major foreign currencies.
According to him, many of the local companies could manufacture gas, solar, liquefied natural gas and fuel powered vehicles, but they lack encouragement for expansion. He noted that the consistent abandoning of local manufacturers and preference for foreign brands was further affecting the naira.
Currently, there are numerous automobile companies in Nigeria, both indigenous and foreign brands, which include Nord Automobiles Limited, Innoson Vehicle Manufacturing, Peugeot Nigeria, Stallion Motors, Lanre Shittu Motors, Proforce Motor, Globe Motors, Elizade Motors, Dana Motors and Coscharis Motors among others. However, these automobile companies remain in a steeped struggle to remain in the market thereby shrinking employment and wealth creation opportunities in the sector.
Boost Confidence in Indigenous Industry, Automakers Tell FG
eaders in Nigeria’s indigenous automobile manufacturing and foreign brands assembling sector have highlighted the government’s lack of confidence in the country’s automobile industry as one of the major challenges faced in the industry.
The Chairman of Innoson Group, Chief Innocent Chukwuma, stated that the lack of confidence in the indigenous automobile industry in Nigeria by the government and its officials was a challenge these companies battle with. He added that the high tariff and irregular supply of electricity have further frustrated the efforts of the automobile companies in the country.
Chukwuma disclosed this while speaking with journalists recently at his company’s plant in Nnewi, Anambra State. He explained that with the removal of subsidy on petrol, the patronage of indigenous automobile companies was expected to receive a boost. He said that the company has the capacity to serve Nigeria and other regional countries through its plant.
The Innoson Boss explained that anyone promoting the importation of vehicles would be doing so at the peril of the economic growth of Nigeria. He emphasized that the importation of vehicles would only add more pressure on the naira, while the quest for foreign exchange would increase. According to him, Innoson Vehicle Manufacturing (IVM), through its plant manufactures mass transit vehicles, Sports Utility Vehicles (SUV), small buses and others, which are either Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), electric, diesel or Premium Motor Spirits (PMS) powered. He pointed out that IVM could manufacture about 500 units of vehicles monthly, stressing that the company had the capacity to tackle mass transit challenges not just in the country, but in the African region.
“I don’t think there are challenges in the automobile industry because solutions are available. The petrol price has gone up and people will reduce their spending by using buses for work. We have natural gas to power all these buses, we can use normal gas and even if you want electric, which is through charging, we can also produce that. Our factory here can produce any brands of vehicles that you need. We manufacture according to demand. We are manufacturing the small vehicles now because there are demands for them. During the COVID-19 period, what we produced were the ambulances. We are here on ground and any kind of vehicles that need attention in this country, we can produce them. Now, we are producing buses in mass because Nigeria needs it now to make sure that its workers are able to go to their various offices or workshops easily,” he explained.
Chukwuma further noted that the company has CNG, LNG, ordinary gas and fuel powered vehicles, as well as electric vehicles and the company is available to manufacture vehicles for any purpose Nigeria desires. He explained that, although Innoson does not produce engines, it produces the body and buy the system from any company that has the quality materials needed, emphasizing that, Innoson has the capacity to produce for any brand of vehicles.
The Marketing Manager for Dana Motors Nigeria, Mr. Olawale Jimoh, said that the government remained the predominant customer in Nigeria’s automotive industry. He explained that the annual sales of vehicles had declined drastically in the country, leaving the automotive companies at the mercy of government patronage, which is discouraging to the vast majority of the stakeholders who had invested substantially in the country’s economy.
Jimoh lamented that the ditching of Nigerian models by the government and other organizations for foreign brands is having unprecedented negative effect on the naira, thereby leading to reduced buying powers by Nigerians. He noted that, while other countries had supported their local industries and improve their economies, the reverse is the case with Nigeria.
In his words, “South Korea can be used as a reference point where they actively promoted and supported their local automobile industry, thereby helping them to stabilize their local currency. By contrast, when a country heavily relies on imports, as seen in Venezuela, the local currency is bound to experience severe devaluation during economic downturns”.
“In the Nigerian context, the inclination for foreign vehicle imports not only places undue pressure on the naira, but also hampers the growth potential of the local automotive sector. A strategic shift and unflinching support for local industries could not only bolster the currency, but also foster a more resilient and self-sufficient national economy.”
The Dana Motors Director appealed to political office holders to go beyond paying lip services to supporting the local industries, and actually work the talks, insisting that the government had a big role to play in moving the sector forward. He expressed that the auto industry had a huge contribution to the economy as it creates a huge number of employments, as well as contributes to the Internally Generated Revenue (IGR) and diversify the country’s economy when well-harnessed.
“The government has a pivotal role to play in facilitating an environment that is conducive to the growth of local stakeholders, ultimately contributing to a more robust and diversified national economy. It is imperative to move beyond mere slogans and embrace substantive policies and actions that empower local industries, recognizing the crucial role they play in steering the country towards economic resilience and economic sustainability,” he concluded.
Similarly, an industry analyst, Mr. Chris Amokwu, stated that it was important for the government at all levels to look inward and encourage the indigenous automobile players, insisting that the indigenous mobile manufacturing companies had the capacity to solve the mobility problem, but regretted their neglect, which he said had further added to the continuous drop of naira against major foreign currencies.
According to him, many of the local companies could manufacture gas, solar, liquefied natural gas and fuel powered vehicles, but they lack encouragement for expansion. He noted that the consistent abandoning of local manufacturers and preference for foreign brands was further affecting the naira.
Currently, there are numerous automobile companies in Nigeria, both indigenous and foreign brands, which include Nord Automobiles Limited, Innoson Vehicle Manufacturing, Peugeot Nigeria, Stallion Motors, Lanre Shittu Motors, Proforce Motor, Globe Motors, Elizade Motors, Dana Motors and Coscharis Motors among others. However, these automobile companies remain in a steeped struggle to remain in the market thereby shrinking employment and wealth creation opportunities in the sector.
