The Nation Newspaper

Tag: auto

  • Union praises govt on auto policy

    The Automobile, Boatyards, Transport, Equipment and Allied Senior Staff Association (AUTOBATE), has praised the Federal Government for its affirmative position and endorsement of automotive policy made known by the Ministry of Industry, Trade and Investment.

    The union said in a press statement by  its National President, Comrade Sola Olorunfemi, that  it is particularly elated that the endorsement vindicated its earlier position that the auto policy must be fully implemented in order to boost local production and create more jobs. The essence of a real change seeking economy is human development and this is one precise way to correctly demonstrate industrial growth, it said.

    “AUTOBATE firmly believes that the auto policy should only be progressively reviewed. The Federal Government should continue with its promise to working to engage banks and other financiers to act as technical partners both in Nigeria and outside Nigeria to provide funding for operators.

    “It is also a right step that the Federal Government is planning to “leverage technology to fight smuggling of used cars across the border.”

    He, however, urged the Federal Government to move further by directly investing in the industry and making history with a public-sector auto company that will earmark us as real local producer of automobile. This, according to him, will widen public profit and create much more massive employment.

    “AUTOBATE congratulates auto stakeholders for agreeing with our viewpoint rather than continual preference for a second hand industry. We hereby urge all auto companies to treat workers’ welfare as utmost, and stop the recent redundancy. There is no excuse anymore,” he said.

  • Prioritise forex allocation to auto firms, council urges CBN

    Prioritise forex allocation to auto firms, council urges CBN

    The National Automotive Design and Development Council (NADDC) has urged the Central Bank of Nigeria (CBN) to prioritise foreign exchange (forex) allocation to the automobile industry.

    NADDC’s Director of Policy and Planning, Mr. Luqman Mamudu, who made the appeal in Lagos, said it would enable the local manufacturers to acquire critical components for production and to safeguard their investments.

    He said it was essential that forex allocation to the sector was prioritised since the essence of the automotive policy was to boost local capability and restrict importation of used vehicles. He said scarcity of forex is undermining the development of the industry.

    “At present, the local assemblies can produce 210, 000 vehicles per annum. We believe that with encouragement from government, it can improve. But most assemblies are facing challenges of sourcing for foreign exchange for critical input, which has led some to lay off staff. To sustain the auto industry, local assemblies need encouragement from the government to access foreign exchange for production,’’ he said.

    Mamudu stressed that the automotive industry was a critical sector capable of creating jobs and impacting on other sectors of the economy. He said the automotive industry was capable of driving the agricultural sector because farm tractors were produced by the automotive industry.

    “It also drives consumer goods like washing machines, motorcycles, boats used in the marine industry. The automotive technology is really versatile, that is why developed countries do not joke with the industry. We cannot keep importing vehicles. We must develop our capacity locally, so that we do not continue to rely on other countries,” Mamudu said.

  • Reconstructed Ladipo auto market opens next month

    Reconstructed Ladipo auto market opens next month

    Ladipo Ultra Modern International Auto Spare Parts Market, Mushin, Lagos, which was demolished in October,last year, for reconstruction, will be opened next month, its developer Chris Onyekachi Simon, has said.

    He broke the news during a sensitisation rally by members of the market association.

    Simon, who is the Managing Director of Total Value Integrated Service Limited, said when completed, the market, would boast of about 1,000 shops, with modern facilities, such as toilets, a parking lot, canteen, bathrooms and adequate security.

    The market, he said, has opened its doors to applicants who want to get shops, saying that his firm  would assist buyers who do not have enough money to pay by linking them with a bank, provided they are able to pay the half of the amount. He said the shops are relatively cheap compared to others in the state as buyers are expected to buy them off, and not rent them.

    Noting that the market is the largest in West Africa, he said it would remain the best. He alluded to the crisis that trailed the demolition of the market with many claiming that the state government wanted to take it over from the traders, among other allegations. “All thanks be to God who started the project. We meant well for the people. I am happy and they are happy. When completed, they will have their shops back,” he said.

    The market’s association Chairman, Kingsley Ogunor said the rally was aimed at informing its members and others in the market that the union has not sold out as some claimed, but that true to its words, it has been rebuilt. He said what happened last year was that the 70-year old lease agreement between the traders and the government had expired and the government wanted to use the opportunity to rebuild the market.

    Unfortunately, he added, many people did not understand the situation and thought, the government was on a take-over mission. ‘’But in the spirit of change, we are moving forward,’’ he said, adding that priority would be given to traders.

    Simon and Ogunor thanked the state government, Executive Secretary, Mushin Local Government, Publicity Secretary, All Progressives Congress, Lagos State, Joe Igbokwe and others for their roles in resolving the crisis.

    A member of the association Jude Igwilo confirmed Ogunor’s words. “Now the government should keep its words and remember the traders,’’ he added.

  • Skye Bank, KIA Motors sign auto finance pact

    Skye Bank, KIA Motors sign auto finance pact

    Skye Bank Plc and Kia Motors have signed a strategic auto finance agreement to enable customers of Skye Bank, who wish to purchase brand new Kia vehicles, do so without difficulty. The arrangement covers Kia models like Picanto, Rio, Cerrato, Optima and Sportage.

    Speaking at the agreement signing ceremony in Lagos, Head, Retail Banking Group, Skye Bank Plc., Nkolika Okoli, said Skye Bank, as a retail focused bank, is always on the lookout for ways to add value to its customers and the partnership is to provide avenue for customers to easily acquire brand new cars.

    Okoli said, Kia brand is one of the fastest growing brands in Nigeria’s automobile industry today and she described Kia cars as very popular to average Nigerians. She also said that Kia spare parts and Kia service centers are readily available across the country, thereby offering convenience to the teeming car owners.

    Speaking on “who is eligible?”, Okoli said, salary earners and business owners can acquire cars under the partnership with down payment as low as 20 per cent of the total cost of the car. So, rather than opt for fairly used cars popularly called ‘Tokunbo’ in local parlance,  customers are encouraged to provide 20% equity contribution for a brand new car while the balance can be repaid over a four year period. Okoli also noted that there is no need for salary domiciliation for salary earners; they can meet monthly repayment using post-dated cheques.

    Also speaking at the event, Kia Motors’ Chief Commercial Officer, Mr. Sandeep Malhotra, described the partnership as an important one given Skye Bank’s customer centric orientation. Malhotra said the partnership would make ownership of Kia cars very easy, cheap and affordable for anybody with a regular source of income who ordinarily may not have the required money to pay for the car at once.

    He listed the benefits accruable to customers who buy Kia cars under the special arrangement to include free first three services, discounted prices, free delivery, five year warranty and free vehicle tracker.

  • Nigeria is Africa’s largest auto market, says Ford CEO

    • Firm to launch 30 new vehicles by 2020

    Nigeria’s auto market remains the largest in Africa, and the buying power of her middle class is increasing exponentially thus, presenting a huge opportunity in terms of consumption of auto products. This is despite infrastructure challenges, the President/CEO Sub Saharan African Region, Ford Motor Company, Mr. Jeff Nemeth has said.

    Nemeth while pointing out that vehicle sales in Middle East & Africa are estimated to grow 40 per cent by 2020 added that the company plans to launch at least 30 new vehicles by 2020 in Middle East & Africa. He however, said the auto maker’s ultimate ambition is to corner 50 per cent of the Nigerian auto market, which remains a significant market in Ford’s Sub-Saharan Africa (SSA) region and accounts for a solid percent of its regional sales.

    He spoke recently in Lagos, on the sideline of the official announcement of the Ford vehicle assembly and unveiling of the first Ford Ranger truck to come off its assembly line in Nigeria. The company’s Semi-knocked Down (SKD) operation in Nigeria was on the strength of its strategic partnership with local Ford dealer group Coscharis Motors Limited. The vehicle assembly line is located in Ikeja, Lagos.

    Mr. Nemeth pointed out that about 54 per cent of Nigeria’s 170 million population constitute the working class whose purchasing power is increasing and this was why Ford was committed to increasing its market share in Nigeria and other key African markets in the future.

    To underscore its commitment in the Nigerian auto market, the Ford CEO said apart from the facility in Lagos, the company plans to establish two new ones in Calabar and Ekiti in 2016. He said the Lagos facility will accommodate one shift and will produce an initial 10 units per day, while a gradually expansion is being planned over time.

  • NECA urges consistency in auto policy

    NECA urges consistency in auto policy

    The Nigeria Employers’ Consultative Association (NECA) has expressed concern over calls by some individuals on President Muhammadu Buhari to jettison the National Automotive Policy.

    Its Director-General, Mr. Olusegun Oshinowo, said one of the greatest challenges the country has faced, which had stifled its sustainable development is policy inconsistency and lack of continuity.

    He said the time had come for the the government to put economic interest ahead of political considerations.

    “Government should imbibe the culture of adopting well-intentioned policies of past governments. The Automotive Policy is one of such that needs to be sustained,” he said.

    Oshinowo urged Buhari not to pander to the whims and caprices of those calling for policy reversals, adding that it would not be in the interest of the economy.

    He said: “Government should sustain and deepen the policy through its faithful implementation, without any waiver or threat of possible reversal, except for the recognition of certain categories of non-luxury heavy duty vehicles that cannot and will not be assembled in Nigeria.

    “President Buhari will do well by ignoring the clamour to lower import tariff on automobile products, as this will negatively impact on the policy. It will end up promoting importation, which is not in tandem with the contents and spirit of the automotive policy, to promote assembling in the country.”

    Oshinowo reiterated the need for the National Automotive Industry Development Plan to be backed by an Act of the National Assembly to ensure commitment and prevent reversal, thereby promoting backward integration and diversification.

    The National Automotive Industry Development Plan (NAIDP) was hailed as a welcome development when it was initiated. It was designed to stimulate growth in the automotive industry and the economy. It was also designed to be of immense strategic importance to the economy, being a critical employment multiplier.

  • FCMB, Peugeot deepen auto financing

    First City Monument Bank (FCMB) Limited and Peugeot Automobile Nigeria (PAN) have launched an auto finance and acquisition scheme. The development is part of efforts to help individuals, (including the self-employed) and employees of organisations, corporate bodies and institutions within the public and private sectors, to become car owners in a convenient way.

    Under the scheme, which was unveiled at the weekend in Abuja, qualified customers of FCMB would be able to own a new Peugeot for a low as N80,367.68 under a monthly repayment plan up to five years. The new generation Peugeot brands on offer in the scheme, with varied monthly instalment payments, are the 301 ranges (Access, Active, Allure PRS, LXP); the 308 models (Allure Executive and Allure PRS); the 3008 (Active and Active LXP); 4008 and 508 (Active and Access).

    At the launch, the Regional Director, Abuja and North, FCMB, Lukman Mustapha, said  the partnership is a value-added consumer loan offering aimed at expanding the scope of vehicle ownership in the country. He said: “We have designed this scheme to enhance the lifestyle of our existing and potential customers through discounted pricing, flexible repayment and other benefits associated with it.”

    Mustapha stated that as an inclusive lender with a strong retail franchise, FCMB is committed to create opportunities for not just its customers, but all segments of the society in line with its values as a simple, reliable and helpful financial institution.

    FCMB’s Divisional Head, Retail Banking, Olu Akanmu, explained that apart from the flexible and convenient repayment plans, the scheme offers many benefits. Among these are free vehicle registration and tracking, three-year extended vehicle maintenance service, discounted insurance premium and discounted interest rate.

    Akanmu assured that, “throughout the period of this scheme, our customers, who sign-on will not have to worry about releasing bulk cash to acquire a brand new Peugeot vehicle. With this offering, they will be able to meet other needs at the same time”.

    Managing Director/Chief Executive of Peugeot Automobile Nigeria (PAN), Ibrahim Boyi, said the auto maker is excited to partner FCMB to make the acquisition of vehicles easier for Nigerians. “This is a partnership between two notable and viable brands. The auto finance scheme offers new evolutions of Peugeot cars that are durable, provides safety, comfort and fully adapted to Africa’s climate,” he said.

    While advising potential beneficiaries of the scheme to live within their means and, “avoid abusing the credit facility, which the Bank will provide to them”. Mr. Boyi expressed optimism that, “many Nigerians will take advantage of this opportunity to become car owners”.

     

  • Five injured in Ondo auto crash

    Five persons were injured at the weekend in multiple accidents in Oka-Akoko, Akoko South West Local Government Area of Ondo State. Two vehicles were damaged.

    The accident, which occurred on the Owo/Abuja Road, was said to have been caused by over speeding.

    The first happened at the accident-prone Oke-Alabojuto. The other was at Oke-Maria near Oka-Akoko.

    It was gathered that the truck rammed into a car coming from Abuja and the driver reportedly fled.

    An eyewitness, Mrs Taiba Yaya, said the accident caused gridlock on the busy road, which links the South to the North.

    It was learnt that the victims were rushed to the Federal Medical Centre, Owo.

    The unit commander of the Federal Road Safety Corps (FRSC) in Ikare, Jimoh Basiru, said over speeding was responsible for the accident.

    The FRSC boss said the truck had been impounded. He warned drivers against over speeding.

  • Online auto market thriving

    Online auto market thriving

    Carmudi is the only vehicle marketplace which offers buyers, sellers and car dealers the ideal platform to find cars, motorcycles and commercial vehicles online. In this report are the results of Carmudi quantitative surveys conducted online with car buyers and dealers, as well as in-depth interviews with industry influencers across the country. The online platform examines the current and future state of the automobile industry in the country as well as other emerging markets, TONIA DIYAN reports.

    The drastic increase in internet and mobile penetration, rising Gross Domestic Product  (GDP) , and the emergence of a middle class have succeeded in changing the global state of automobile sales and car purchasing behaviours in the country. There is a shift from offline  to online car purchase, 83 per cent of Nigerian car buyers turn to the internet, blogs, forums, and social media when researching for cars. According to majority of car dealers, up to 80per cent of their customers turn to the internet and social media for auto research.

    Globally, auto e-commerce has grown at such a staggering rate that now as many as 80per cent of new car customers and almost 100per cent of used car customers begin their car shopping experience online. With internet and mobile penetration significantly growing in emerging markets, the rate of moving the car shopping experience online is beginning to mirror that of Western markets. 83per cent of car buyers have been reported to use the Internet to conduct research on cars before making purchases.

    From findings by Carmudi, responses have proved that offline media, including newspaper classifieds and auto expos (under 10per cent) are declining as a source for buyers. Nigerian car dealers are also getting more and more digital when advertising their listings. Around 80per cent of car dealers are now primarily focused on advertising their car listings online.

    The Chief Executive Officer of Globe Motors, William Anumudu, said; “Currently, the number of people turning to the internet for car purchase has been on the increase. A lot of people use the internet to search for information, products or services. Any business that wants to excel must go digital. This is due to the fact that Nigerians like to be associated with new trends, the internet means accessibility to the world at all times and having information at the fingertips. As people embrace the internet, all businesses online will profit.”

    The study also stated that the state of ‘Global Car Sales Global automotive sales’ for 2015 are expected to reach close to $89million, a 2.4per cent growth from 2014. Emerging markets’ share of global sales will rise from 50per cent in 2012 to 60percent by 2020, while their share of global profits is also set to rise by 10per cent. When it comes to new cars, purchase intent is strongest in Asia, where 65percent of respondents say they will buy new cars in the next two years, compared with seven per cent who plan to buy used cars.

    Christian Keller, Managing Director Carmudi Nigeria said: ”2015 is the year of online car sales in Nigeria. With an unmatched growth rate in online car searches in Nigeria and a rapidly growing middle class, Carmudi´s report affirms that our investments to become the number one online car marketplace in Nigeria were worth it.”

    Nigeria has been heavily dependent on auto imports, which account for the largest share of the country’s foreign reserves each year. New vehicle assembly plants are expected, and the number of imported cars has already declined significantly from 11,563 in January to 7,400 units in February. Last month’s historic election of Muhammadu Buhari as president has generated uncertainty surrounding the autos sector. Although the party is pro-business, some industry stakeholders disagree with elements of the Autos policy, such as second-hand dealers who will lose out from the 70per cent tax on imports, or who would like to see full implementation of the policy deferred. Buhari could choose to reverse all or some sections of the automotive policy to secure more support with these stakeholders.

    The Carmudi study stated that 30percent of car dealers in Nigeria reported an increase in car sales over the past 12 months due to the changing economic climate, while 50 per cent of car dealers surveyed reported a decrease. Nigeria’s auto industry remains relatively strong, but critical policy changes, such as the National Automotive Industry Development Plan, have the potential to change the entire industry.

  • Save us from hoodlums, auto technicians tell govt

    Save us from hoodlums, auto technicians tell govt

    Auto technicians in Lagos have appealed to the state government to save them from the hands of hoodlums.

    They alleged that the hoodlums always entered their premises to harras and extort them.

    The technicians, under the aegis of Motor Mechanics and Technicians Association of Nigerian (MOMTAN), are seeking the intervention of Commissioner for Transport Kayode Opeifa to the incessant attacks.

    At a briefing in their Alausa, Ikeja secretariat, their chairman, Alhaji Morufdeen Arowolo, said the hoodlums always carted away valuables whenever they came.

    He said: “As soon as some of our members close for the day and leave for their homes, hoodlums from God knows where will hijack the premises. Some of our members who were still around were constantly intimidated by these hoodlums. They do all sorts of atrocities. They have made our premises their hideouts scaring our members away.

    “Whenever our members try to challenge them, it resulted in fracas and we know these hoodlums can overpower our men because some of them are armed. We call on government to extend its arm of security to our members. This situation is becoming very embarrassing and we want government to intervene on our behalf.”

    MOMTAN Alausa branch chairman Morufdeen Oyebade called for deployment of security personnel to stop the attacks.