Business in Ghana

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Made In Nigeria Nissan Patrol Rolled Out In Lagos

Posted by Business in Ghana on April 28, 2014

VENTURES AFRICA – Six months after Nigeria introduced a new automotive policy – aimed at discouraging the importation of wholly assembled automobiles and encourage local manufacturing – early responder to the policy, Renault-Nissan has rolled out its first production line in the country.

The company said on Friday that it had become the first major vehicle manufacturer to build a car in Nigeria after the government announced the new policy – although Innoson Motor Company (IVM), in 2012, was the first to produce made in Nigeria cars at its Nnewi plant.

The first vehicle to be made by the Renault-Nissan in Nigeria, a black Nissan Patrol, rolled off the production line at its Lagos assembly plant, marking the start of a new era in the West African country’s automotive industry, a statement by Nissan’s country representatives, Stallion Motors indicated

The roll out of the Nissan Patrol followed an agreement signed by Renault-Nissan last year on local assembly with regional conglomerate, Stallion Group. According to Nissan, plans on production of two other models, the Almera and NP300 have reached an advanced stage, with early May a focus for the first release and August projected for mass production.

“For Nissan, Africa is our strategic growth driver,” Takashi Hata, Senior Vice President and Chairman of Africa, Middle East & India Unit at Nissan Motor Co. Ltd said.

He noted that there was growing demand for cars in African markets, adding that “By acting quickly to begin production in Nigeria, we are securing for ourselves first-mover advantage.”

Nissan expressed hope sales would have doubled in Africa by its 2016 financial year. It recorded the sale of 110,000 units at the end of its 2012 financial year.

According to the car manufacturer Nigeria’s Automotive Policy has encouraged investment, and was the major reason why Nissan decided to start production in the country – it recently opened an assembly plant in Lagos in collaboration with local partners, Stallion Group.

Other global car manufacturers have also signified interest in setting up plants in Nigeria. Peugeot Automobile Nigeria (PAN) said it would roll out 3,000 cars in June, as it last month disclosed operations have restarted in the country.

Kia and Tata have also disclosed plans to set up plants in Africa’s largest economy.

With local productions increasing, Nigerians would be spoilt with choices, with prices expected to reduce as competition brews. According to PAN MD/CEO, Ibrahim Boyi: “The only way you can penetrate that market is through pricing.”

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