The Federal Government’s new automotive policy is expected to cause a paradigm shift from the trend of importing fully built new vehicles to the importation of newly built automobile components (spare parts) for the utilisation of the assembly plants that are springing up in the country, analysts have said.
This development, they said, is likely going to shape the growth and content of Nigeria’s containerised imports in 2015 as the automobile spare parts are expected to come into the nation’s seaport packed in container boxes.
Investigation reveals that since the increase in the duty and levy paid on imported new vehicles from 20 percent to 70 percent by the Federal Government, Nigeria’s automotive market has started witnessing a systematic drop in the volume of imported new vehicles.
However, this development is also opening up new market opportunities and frontiers for importers, auto dealers, shipping companies and the entire business community.
BusinessDay further discovered that several auto makers like PAN-Nigeria Limited, VON Automobile (Stallion Group); Innoson Vehicles Manufacturing and Transit Support Services are already making in-roads into the business of assembling new vehicles in Nigeria. Also, Cosharis Motors, Globe Motors and Peace Mass Transit are among the category of auto makers that are currently at preliminary stage to kick-starting their individual assembly plants.
“Nigeria’s containerised import market is expected to enjoy positive growth of about eight percent on the back of the importation of new auto spare parts for the upcoming assembly plants in Nigeria,” a recent Maersk Nigeria trade report noted.
The projected growth, the report stated, is seen as the new opportunities inherent in the shipment of finished auto parts to service the demand of the assembly plants that are expected to take-off and to drive the local production of made-in-Nigeria vehicles as projected by the Federal Government.
“The implementation of the new automotive import policy will see an increase in containerisation of vehicles in knocked down condition shipped to new assembly plants in the country. All of these indications suggest positive volume growth in containerised imports in 2015,” says Jan Thorhauge, managing director of Maersk Nigeria Limited
In his own view, Tony Anakebe, a renowned maritime analyst, who confirmed to BusinessDay in a telephone chat that there would be an increase in the volume of imported completely knocked down (CKD) spare parts in 2015, also questioned the place of this increase in volume on the market price of new vehicles that are assembled in Nigeria especially as it concerns the purchasing power of an average Nigeria.
Anakebe, who also affirmed that the assembly plants and vehicle manufacturing in Nigeria will create huge employment in the country, also expressed skepticism about the quality of vehicles that would be produced in-country compared to the quality of imported ones.
Explaining further, he stated that currently with a minimum of N1.8 million that an average Nigerian can buy a very good ‘tokunbo’ vehicle that would serve him for a minimum of five years but the least price for a new car assembled in Nigeria would go for about N3 million.
http://businessdayonline.com/2014/10/fgs-new-automotive-policy-to-open-up-more-opportunities-in-import-business
Wednesday, October 29, 2014
Fg’s New Automotive Policy To Open Up More Opportunities In Import Business - Politics - Wabsodlink
The Federal Government’s new automotive policy is expected to cause a paradigm shift from the trend of importing fully built new vehicles to the importation of newly built automobile components (spare parts) for the utilisation of the assembly plants that are springing up in the country, analysts have said.
This development, they said, is likely going to shape the growth and content of Nigeria’s containerised imports in 2015 as the automobile spare parts are expected to come into the nation’s seaport packed in container boxes.
Investigation reveals that since the increase in the duty and levy paid on imported new vehicles from 20 percent to 70 percent by the Federal Government, Nigeria’s automotive market has started witnessing a systematic drop in the volume of imported new vehicles.
However, this development is also opening up new market opportunities and frontiers for importers, auto dealers, shipping companies and the entire business community.
BusinessDay further discovered that several auto makers like PAN-Nigeria Limited, VON Automobile (Stallion Group); Innoson Vehicles Manufacturing and Transit Support Services are already making in-roads into the business of assembling new vehicles in Nigeria. Also, Cosharis Motors, Globe Motors and Peace Mass Transit are among the category of auto makers that are currently at preliminary stage to kick-starting their individual assembly plants.
“Nigeria’s containerised import market is expected to enjoy positive growth of about eight percent on the back of the importation of new auto spare parts for the upcoming assembly plants in Nigeria,” a recent Maersk Nigeria trade report noted.
The projected growth, the report stated, is seen as the new opportunities inherent in the shipment of finished auto parts to service the demand of the assembly plants that are expected to take-off and to drive the local production of made-in-Nigeria vehicles as projected by the Federal Government.
“The implementation of the new automotive import policy will see an increase in containerisation of vehicles in knocked down condition shipped to new assembly plants in the country. All of these indications suggest positive volume growth in containerised imports in 2015,” says Jan Thorhauge, managing director of Maersk Nigeria Limited
In his own view, Tony Anakebe, a renowned maritime analyst, who confirmed to BusinessDay in a telephone chat that there would be an increase in the volume of imported completely knocked down (CKD) spare parts in 2015, also questioned the place of this increase in volume on the market price of new vehicles that are assembled in Nigeria especially as it concerns the purchasing power of an average Nigeria.
Anakebe, who also affirmed that the assembly plants and vehicle manufacturing in Nigeria will create huge employment in the country, also expressed skepticism about the quality of vehicles that would be produced in-country compared to the quality of imported ones.
Explaining further, he stated that currently with a minimum of N1.8 million that an average Nigerian can buy a very good ‘tokunbo’ vehicle that would serve him for a minimum of five years but the least price for a new car assembled in Nigeria would go for about N3 million.
http://businessdayonline.com/2014/10/fgs-new-automotive-policy-to-open-up-more-opportunities-in-import-business
