Nigeria has emerged as the leading automobile market in Africa for the past few years. In 2017, it was expected that Nigerians would import around 335,000 used cars, commonly known as ‘Tokunbos,’ along with 90,000 new cars. However, only about 35,000 cars were assembled locally, which accounted for only 15% of total car sales in Nigeria. By 2050, the number of locally assembled cars could rise to 70%.
Due to the high cost of import duties imposed on the automotive industry, the federal government of Nigeria adopted an Automobile policy in 2013. The policy encouraged foreign and indigenous car manufacturers to establish their assembly plants within Nigeria, where vehicles produced locally do not attract import levies. As a result, they tend to be cheaper than their foreign counterparts. This policy aimed to encourage local production, improve the economy, and make the selling price of every manufactured car affordable to the average citizen.
The Nigerian automobile manufacturing industry is growing, with a few companies producing motor spare parts, fixing broken vehicle components, revamping used cars, and assembling imported car parts. However, only a few companies are producing brand new (tear rubber) vehicles in Nigeria, a setback for the labour market that demands more employment opportunities.
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Nigeria’s auto industry’s growth has faced several challenges, leading to a preference for foreign, fairly used (Tokunbo) cars. The reasons for this shift are rooted in the industry’s history, especially during the 1980s. Take a few minutes to learn what happened.
- Innoson Vehicle Manufacturing
Innoson Motors is a Nigerian car manufacturer that started as a motorcycle spare parts trader and became a significant name in the African automotive industry. Its automobile division, IVM, was established in 2007 and was commissioned as the first indigenous car manufacturer in Africa by former President Goodluck Ebele Jonathan in 2010.
- Coscharis Motors
Coscharis Motors is a popular assembly plant for luxury cars such as BMW, Morris Garages, Ford, Rolls-Royce, Jaguar, Land Rover, and MINI vehicles. The Nigerian auto dealer completed its modern plant in 2018, with a production capacity set to churn out over 10,000 vehicles annually. The company has many showrooms and aftersales services throughout Nigeria, with its head office in Lekki, Lagos. The CEO is Cosmas Maduka.
- Nord Automobiles Limited
Nord Motors is a Nigerian manufacturing firm founded by Ajayi Joshua Oluwatobi. It is headquartered in Lagos and produces products such as Nord A3, Nord Max, Nord A5, Nord Flit, etc. The company aims to re-establish Nigeria as a car manufacturing country.
- Elizade Motor (JAC)
Elizade Motors, an authorized dealer of JAC Motors in Nigeria, started assembly operations in Lagos in 2019 to roll out 15,000 vehicles annually from Semi Knock Down (SKD) parts. The plant, certified by the Federal Government, can build different brands of cars. Chief Michael Ade-Ojo founded Elizade Motors in 1971. The company has become a conglomerate with several subsidiaries, including Toyota Nigeria Limited, Mikeade Investment Co. Ltd, and Mikeade Property Dev. Co., and Elizade University, Ilara Mokin, Ondo State.
- Peugeot Nigeria
Peugeot is one of the foremost auto parts assembly plants in Nigeria. The company, a joint venture between Peugeot and the Nigerian government since 1969, is still functional in Kano despite numerous challenges. The federal government sold its equity stake in this partnership to ASD Motors, making the new shareholders one of the owners.
- Globe Motors
Globe Motors introduced the Japanese manufacturer Hyundai into the Nigerian markets in 2018. Hyundai partnered with its major distributor in Nigeria to launch its first auto factory in the country. Since then, Nigerian-made Hyundai cars like Hyundai Elantra, Accent, and more have been produced. Globe also has cars from other brands like Mercedes-Benz, Toyota, and Higer.
- Stallion Motors
The FG sold its stake in Volkswagen of Nigeria Limited to Stallion Motors, seemingly as part of a bid to privatize the economy. This acquisition led to the production of locally assembled Nissan vehicles that flooded the auto market in 2014. Producing them locally reduced the price of these products, which caught the attention of some government officials who later adopted the brand as an official government car.
- Proforce Motor
Proforce Limited is a leading defence company specialising in manufacturing armoured vehicles and personal protection. It was incorporated in 2008. Ade Ogundeyin founded the company that makes military equipment and defence systems—an Engr-led delegation. The company was visited by Dideolu Falobi, FNSE, National Chairman, UNILAG Faculty of Engineering Alumni Association (UNILAGFEAA).
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