Nord Automobile Limited, also known as Nord Motion, is a Nigerian automotive firm that has been assembling cars in the country for the past four years.
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In an interview with Business Day, the CEO of Nord Motors, Oluwatobi Ajayi, reveals to the publications that the company has not been having encouraging demands in the country and that this has affected the number of vehicles Nord Motors assembles in Nigeria.
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Speaking to the publication, the CEO noted that the first two years Nord Motors existed in Nigeria, they never produced any vehicles because the company’s focus was on R&D, testing, consulting, or talking to the regulators in the Nigerian automobile industry. However, they started production around 2019 – 2020 and have assembled close to 200 units across various car models.
Located in Sangotedo and Epe, the company can assemble five units of cars in their Epe factory. However, the CEO is convinced that they will be able to assemble up to 25 units in a day if they have a little extra investment to purchase the necessary equipment.
On why Nord Motors Nigeria has not been operating at full capacity, the CEO noted that it’s a result of reduced demand from Nigerians. He noted that on a good month, the company assembles a maximum of 10 days. But there are months when they only assemble for four days.
He states three reasons why demand is hindered in Nigeria, saying they are financial, economic, and social factors that have affected demand for the company.
He notes that being in a country where citizens don’t earn well, and having the average decent car in Nigeria being N9 million and above, makes it hard for a good number of Nigerians whose average yearly income is N500,000 – N600,000 to save up and afford a car. Looking at the finance issue, he noted that even the average Nigerian who earns about N1.5 million monthly wouldn’t invest about 7 months of their salary to purchase a car. Talking about the social factor, he highlighted the fact that Nigerians are mostly wired to purchase Tokunbo cars instead of buying new cars.
However, the CEO mentioned that one of the ways they stay afloat in the business is by offering their customers car financing options. They do this by partnering with banks, about five banks. So, as long as the person has a good credit history, all the person needs to do is come to Nord Motors with their bank, make an initial deposit on the vehicle (about 30-40%), and spread the payment across 12-24 months.
About the interest rate for car financing, he stated that Nord Motors’ interest rate is 16% per annum but also has a flat interest rate of about 10% per annum.
Talking about the types of engines that come in their cars, the CEO noted that Nord Motors uses Mitsubishi and Toyota engines at the moment, as they are easier to maintain in Nigeria. However, the company has plans to one day design its own vehicle engines.
Nord Vehicle Design, Availability of Nord Vehicle Parts & Warranty for Nord Vehicles
The CEO of Nord’s Motors notes that the company designs its vehicle in Nigeria and has a partner in Germany that helps them with “putting things into perspective.” The partner helps with some testing, aerodynamic testing. Thereafter, the company sends out the design to China, where the vehicle bodies are made.
Nord Motors also notes that the company has a robust after-sales network that cuts across Abeokuta, Ijebu-Ode, Asaaba, Benin, Port-Harcourt, Kaduna, and two in Abuja. The CEO notes that it’s the company’s priority to ensure that its customers get the best after-sales services.
However, he highlights that their vehicles make use of Japanese Parts, and these parts are easily accessible in the Nigerian market for customers.
About their vehicle warranty, the CEO notes that the lowest warranty offered by the company is two years and 200,000 kilometres, and the highest is four years and 100,000 kilometres.
While Nord Motors has had a humble beginning in Nigeria and has experienced some downturn in demand due to the country, the CEO believes that in 2028-2030, the company will be one of the top 2 in the Nigerian Automobile market in terms of volume, market share, and brand perception. Of course, we all know the other company that’ll make it to the top 2 list.
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