The Federal government has concluded plans to assemble up to 400,000 cars yearly to encourage the production of home made automobiles.
According to the Acting Director-General, National Automotive Design and Development Council, Mr. Luqman Mamudu, in a telephone interview, he said 45 assembly plants have been put in place to see that the target is achieved.
|Image credit: Naijaloaded.|
Mamudu, who recalled that as of 2015, local vehicle production capacity was about 300,000 with utilisation put at 15 per cent, said, the installed capacity had improved with more firms getting the government’s nod to establish assembly plants.
He added that due shortage of forex and other economic challenges the the production had dropped.
“With the entry of Alhaji Aliko Dangote, Africa’s richest man, and Anambra Motor Manufacturing Company into the industry assembling Sino trucks and Shacman trucks respectively, we have improved our installed capacity from about 300,000 to 400,000 vehicles per annum.
“More companies have received approval to assemble new brands in Nigeria. For instance, Globe Motors has signed an agreement with Hyundai Motors; Chief MKO Abiola’s son has also brought in a Chinese brand that will be assembled in the country and Weststar Associates is discussing with Fiat.”