An indication that the new auto policy of the Federal Government will lead to a
drastic reduction in the prices of vehicles has emerged with Hyundai Motors
Nigeria Limited rolling out the first set of low-cost locally assembled vehicles.
The Stallion Group, the parent company of Hyundai Motors Nigeria, has directed
the immediate sale of its locally assembled 1.1-litre engine Hyundai i10 car at
N1.5m, and the 1.2-litre engine Hyundai Grand at N1.9m.
The Hyundai i10, under the old regime of importation, was being sold at N1.9m.
The Grand is a new vehicle, but most vehicles in its segment are going for
between N2.2m and N2.7m.
The drop in prices of locally assembled vehicles is, however, contrary to the
initial fear that the new auto policy will lead to a sharp rise in the cost of
imported new and used vehicles.
Many car dealers had projected about 60 per cent increase in the prices of such
vehicles following the introduction of the new auto policy in September last
year.
As part of the new policy aimed at encouraging local manufacturing of vehicles,
the import duty on new and used cars was increased from 22 per cent to 70 per
cent; while a zero per cent duty was placed on imported Completely Knocked
Down (vehicles).
Apart from the two Hyundai models, the Stallion Group gave other vehicles
locally produced as the Elantra and iX35 sport utility vehicle.
In the truck and bus categories are 10-tonne HD160; seven-tonne HD120; five-
tonne HD78, three-tonne HD65, 28+1-seater Hyundai County and 30-seater
Stallion County.
Although no prices were announced for the vehicles, the Chairman of the
Stallion Group, Mr. Sunil Vaswani, said in a statement on Sunday that the new
vehicles “will be affordably priced,” in order to give Nigerians a break from the
stranglehold of wholesale vehicle importers.
He added that the Hyundai vehicles were being assembled at its plant in Lagos.
The Group Managing Director, Sale, Marketing and Dealer Development, Hyundai
Motors Nigeria, Mr. Parvir Singh, described the accomplishment as a milestone
in the history of the country’s evolving automotive industry.
This is coming barely three months after the auto group, owners of a
multivehicle plant, had rolled out its made-in-Nigeria Nissan Patrol and
presented the vehicle to President Goodluck Jonathan in Abuja.
The Director-General, National Automotive Council, Mr. Aminu Jalal, had told
our correspondent that no fewer than 12 auto firms would begin to assemble
vehicles in the country by the end of the year.
He also declared that the vehicles being assembled would be affordable, adding
that they could be as low as N1.5m.
According to him, by the time the several auto assembly plants roll out their
products, the stiff competition that will follow will lead to reduction in prices
compared to what is currently being experienced in the telecoms sector.
Another Korean automaker, Kia, has said it will to roll out its first set of vehicles
from its Nigerian plant in September this year.
The automaker’s Africa and Middle East Manager, Mr. Homer Kim, stated this in
Lagos recently while inaugurating a Kia ultramodern showroom.
The Kia Motor Corporation had in February this year signed an agreement with
Dana Motors Limited, its representative in Nigeria, to undertake a long-term
investment in assets development, including the provision of technical knowhow
and setting up a machinery for the local plant.
Kim said the plant would immediately begin to assemble select Kia models such
as Rio, Cerato and Optima, which are in the A, B and C segments, and
commence full-scale production of the entire Kia range next year.
Recently, Pan Nigeria revived its moribund assembly plant in the country with
the inauguration of Peugeot 301 production line in its Kaduna factory.
The Managing Director, Pan Nigeria, Mr. Ibrahim Boyi, said the new plant had
been “fitted to handle multiple Original Equipment Manufacturer brand assembly,
(and) when operational, we will require additional 250 workers at the SKD level,
and over 1,000 workers when we migrate to the CKD.”
http://www.punchng.com/business/business-economy/hope-rises-for-cheaper-brand-new-cars/