From Ventures Africa 

Like bees attracted to honey, more foreign automobile manufacturing companies have been racing down to Nigeria, Africa’s largest economy, since the establishment of the New Automotive Policy, designed to foster increased local production and cheaper vehicles for local commuters.

More than two decades after its forced departure global automobile manufacturer, Volkswagen Group, is back on the automobile scene in Nigeria, partnering with Dubai based conglomerate Stallion Group to establish a vehicle assembly plant in Nigeria.

Prior to the birth of indigenous car companies in Nigeria, Volkswagen was one of the only two car assembly companies that competed in the Nigerian market. It unfortunately jumped ship when there was a collapse of its joint venture with the Nigerian government.

Nigeria’s Automotive Plan

In a bid to promote investments in affordable made-in-Nigeria vehicles, engender a drastic reduction in the prices of brand new locally made vehicles and restrict the importation of fairly used vehicles, the country announced the implementation of a new automotive policy late last year. Since then, there’s been as rightly expected, a tremendous growth in the country’s previously moribund automobile industry.

The existence of this policy has brought about the emergence of a few indigenous automobile manufacturing companies, the expansion of already established automobile companies and re – emergence of previously existing companies as in the case of Volkswagen.

Re-awakening the dead

Peugeot Automobile Nigeria (PAN) Limited, announced in May that it intended to recommence operations in it assembly plant in Kaduna, Northern Nigeria.

That same month saw the partnership of car maker Foton and Kewalram Chanrai Group, a global diversified conglomerate with interest in automobile, agribusiness and textile, which will establish an automobile assembling plant to produce Foton range of Vehicles in Lagos, Nigeria’s commercial capital.

In July, indigenous vehicle producer, Innoson Motors, announced the launch of its locally manufactured cars in the market the following month of August. Stallion Group also announced the roll out of its first ever made-in-Nigeria Hyundai vehicles.

Read more at Ventures Africa