Nigeria is moving closer to manufacturing all the vehicles driven on its roads after two Indian auto mobile manufacturers, TATA Motors and TVS Motor said they plan to establish automotive plants in the country.

Nigeria set up a National Automobile Industry Development Plan last year whose aim is to discouraging second hand vehicle importation and encouraging investment from auto manufacturers, Ventures Africa reported.

Bello Rasheed, the principal executive officer at Nigeria’s National Automotive Council (NAC), said the two Indian automobile companies visited the council with the intention of obtaining information on all the needed technical details, administrative requirements and guidelines in setting up of vehicle industrial plants.

While TATA Motors is credited to be the world’s fifth largest truck manufacturer and India’s largest automobile maker with products ranging from cars, buses, utility vehicles, SUVs, trucks, armored vehicles and military vehicle, TVS Motor on the other hand is a leading motorcycle, two-wheeler and three-wheeler manufacturer.

Although some have argued against the implementation of the automotive policy, the government says it will encourage auto manufacturers to produce less expensive vehicle models in the country. This will in turn generate job opportunities, contribute significantly to the GDP, meet the annual demand for vehicles, and strengthen Nigeria’s position in the global automotive industry.

Automotive Manufacturers Association of Nigeria was quoted in a Tribune report saying that ‘made-in-Nigeria’ vehicles will flood the market before the end of the year.

“These investments have been committed, believing the government is resolute in its determination to develop our automobile industry. Investors expect this policy environment will be allowed to thrive for a reasonable period, giving the huge investment required,” Ndubusi Obi, chairman Motor Vehicle Assembly Group of the Manufacturers Association of Nigeria said.

Other major manufacturers like Nissan, Hyundai, Kia, and Geely have also shown interest in establishing plants in Nigeria. According to reports, Japanese auto maker, Toyota is already in talks to invest in the country.