[size=20pt]Growth spurt in automotive industry as capacity rises by 50%[/size]

The result of the latest survey carried out by the Manufacturers Association of Nigeria (MAN) shows that capacity utilisation in the motor vehicle and miscellaneous assembly industry rose to 50.3 percent in the first half of 2014.

This is a significant improvement from 37.1 percent capacity recorded in the corresponding period of 2013 and 42.7 percent reported in the second half of the same year.

It likewise signifies that the automotive policy, introduced in late 2013 by the Federal Government is consistently gaining traction.

“Activities (in this sector) have been boosted recently by the major assembly plants, particularly the tricycle assemblers,” says MAN, in the report.

“In this group is also the oil and lubricant group that is also putting up some level of appreciable performances,” adds MAN.

The motor vehicle and miscellaneous assembly sub-sector includes motor vehicle assemblers, boat/ship builders, automobile components manufacturers, electric generators assemblers, as well as miscellaneous machine and equipment producers. Other members of the group are bicycle makers, motorcycle assemblers and horologicals (wrist watch and wall clock makers).

The growth of the tricycle segment of the auto industry can be attributed to demography, poor transport system in the cities, increased traffic jams and unemployment.

Many in Nigeria’s 24 percent unemployment statistic have found solaces in tri-cycles which have become their sources of livelihood.

“Due to obvious shortcomings in the transport system in the country, tricycle invention has been a good business. Many city dwellers want to get over traffic gridlocks as soon as possible. Tricycles have come to solve this problem,” said Matthew Ibeabuchi, CEO, MD Services Limited.

Tri-cycle assemblers in the country include Innoson Vehicle Manufacturing Company Limited, Eagle Motors and Padson Industries.

Similarly, lubrication oil makers include Conoil plc, Kixx Motor Oil and Forte Oil, among others.

The motor vehicle assembly segment has been the key driver of this sub-sector, having attracted 21 companies that signed commitments with technical partners to set up assembly operations with product lines in 2014.

Peugeot Automobiles of Nigeria (PAN) and VON Nigeria had new leases of life in 2014 while PAN also resumed assembly of Peugeot cars. Similarly, VON started assembly of Nissan and Hyundai vehicles.

Also, Dana Motors signed technical partnership agreements with Kia and Renault for a semi-knocked-down (SKD) assembly plant, while Kewalram Chanrai Group began discussions and feasibility studies to convert a former textile industry in Isolo to an SKD assembly plant.

Coscharis Motors acquired several acres of land at Lekki, Lagos, for the building of Joylong brand of cars and mini-buses, with feasibility studies ongoing.

Innoson has unveiled IVM Fox hatchback and IVM Umu, which are the first ever truly made-in-Nigeria cars. This has placed Nigeria in the league of global car manufacturers, as the vehicles are made up of about 70 per cent locally sourced contents, according to the local content analysis done by the Nigerian Society of Engineers (NSE). This, however, will only reflect on capacity in 2015.

“We spend about $6 billion annually importing cars. However since the introduction of the auto policy, we have experienced a 20 per cent drop in imported cars and have exceeded expectations in a very short period,” said Olusegun Aganga, minister of industry, trade and investment, during the commissioning of Innoson’s new vehicles in Nnewi, Anambra State.

http://businessdayonline.com/2015/02/growth-spurt-in-automotive-industry-as-capacity-rises-by-50/#.VNtNNvnF-So

Backwards never, God is already blessing team fresh air. GEJ till 2019

this kind of news without a pix is very annoying. i know some growth like inflation can not be seen physically but not this type abeg.

can we see the keke assembly plants. so we even make keke locally and it still sells for almost half a million, na im be say ya wa dey.



the only reason i have not insulted Ngozi and her economic management style is inflation that has remained at single digit but pls show us pics of other things like the rice mill, the dams and the textile mills.

GEJ carry go but you need to employ professional propagandists like APC does

ITS AUDIBLE TO THE BLIND AND VISIBLE TO THE DEAF THAT THREE MAIN SECTORS RECEIVED MASSIVE PUSH IN THIS ADMINISTRATION....
1.TRANSPORT
2.AGRICULTURE
3. AUTO MANUFACTURING

we need more goodnews like this

See lie in percentage..

Next abef

aguiyi:
this kind of news without a pix is very annoying. i know some growth like inflation can not be seen physically but not this type abeg.

can we see the keke assembly plants. so we even make keke locally and it still sells for almost half a million, na im be say ya wa dey.



the only reason i have not insulted Ngozi and her economic management style is inflation that has remained at single digit but pls show us pics of other things like the rice mill, the dams and the textile mills.

GEJ carry go but you need to employ professional propagandists like APC does

innoson have Keke assembly plant.. that man started assembling okada. 1985. moved to Keke. now he is into. motor....


besides come to nnewi. different brand of keke. by different importers......all assembled in Nigeria......U can imagine all the brand new machine sold at nnewi machine parts. 're all assembled locally....


his plastic factory is the biggest in west Africa.. makes car bumper for Peugeot...

I see

That is good....but it could be better if we get Ajaokuta running again.

It would also be better if we can generate 40000MW....(and this is where Nuclear power comes in).

It would also be better if we had domestic manufacturers of the car components....eg radios, lightbulbs, etc.

It would also be better if we had better trained people....not the glorigied clerks our educations system turns out every year!

that's good

All this our cars is how much?

I would like to know the difference between the price of imported ones and the ones assembled in Nigeria.

I pray its true.

Good. If not for GEJ's lacklustre attitude towards corruption (stealing) and insecurity Nigeria would have been a better place.

see sponsored post...................on paper thinz but missing in reality

Rises by 50% wetin?.......and still I no get car. God is watching u.

Watin we go use drive the car When fuel no dey

Hats off to Innoson Motors.

we need 12000MW power...things will improve automaticaly...

there will be no industrilization with out energie....

we nigerians are not lazy....

Good news for Nigeria. Enemies of progress that shouts change should pls shut up and for once in their lives appreciate good thing

GEJ is working, Nigeria is moving...

More tractors coming to my farm to produce more food for the populace

that's good to hear
i just hope the four wheels won't remove on motion when driving...

Gej is not really clueless after all,those cars will be able to transport him to Otuoke insteah of walking with shoes.

Nice one GEJ is working on cars that will take him back to OTUOKE

In as much as i like the story to be real, but few days ago, this was also all over newspapers and on tv news ,but never got to nairaland (frontpage). Is this not contraction on its self? I think light issue should be fixed first, because all these so called boosting will really go down the drain, if after investing all they could, and yet, the hardly make profits due to high cost of productions.

[b]The recent increase in electricity tariffs approved by the Nigerian Electricity Regulatory Commission will cripple the operations of industries in the country, the Manufacturers Association of Nigeria has said.

The association also decried the “astronomical increase” in electricity fixed charge from N25,000 to about N250,000 on the average for industrial outfits.

In January, NERC announced after it had conducted a special review of the tariffs that it approved the revised Multi Year Tariff Order 2.1.

“A major highlight of the MYTO 2.1 is a six-month freeze from January 1, 2015 on tariff increase for residential consumers. The increase in tariffs will only affect non-residential consumers, that is, commercial consumers of electricity,” the Chairman, NERC, Dr. Sam Amadi, had said.

MAN, in a document made available to our correspondent in Abuja on Tuesday, however, stated that “the hike in tariff as well as the astronomical increase in fixed charge in the face of estimated billing as against actual consumption is the order of the day. The association considers this as unfair and worrisome!

“The implication of this is that many companies may be forced to close shop, especially the heavy users such as cement and steel industries, which have been expanding their investments through the backward integration approach.”

Speaking during a meeting with NERC, the President, MAN, Dr. Udemba Jacobs, said manufacturers should continue to operate on the old MYTO rate till 2017.

He noted that the fixed charge should be reduced from the average of N250,000 to N25,000, particularly for small and medium-scale industries across board.

According to Jacobs, the fixed charge should be pro-rated based on the amount of energy consumed by companies, adding that NERC should consider and approve a uniform tariff for all manufacturers regardless of wherever they were located, rather than giving some companies a preferential lower tariff advantage over the others because of their geographical locations.

He stated that MAN had developed a Special Purpose Vehicle for generating power for its members in some industrial sectors.

“This company was set up some six years ago, but when we had a promise from government that power was going to improve, we kind of slowed down. We were asked to slow down on it. But now, that the situation is the way it is, we are going to reactivate that again,” he said.

In his reaction, Amadi promised that the commission would look at the requests made by the manufacturers and would work on how to reduce the charges after extensive deliberations with the power distribution companies.

He stated that claims that power generation had reduced significantly were not true, stressing that the country’s electricity generation would grow considerably in due season.

Amadi said, “The truth is that electricity in Nigeria has not decreased significantly. If we are doing between 3,800 and 4,500 megawatts depending on situations, then you are not going to have guarantee of very stable electricity.”[/b]

http://www.punchng.com/business/business-economy/manufacturers-condemn-new-electricity-tariff/

Jonathan/Sambo team in the driver's seat for a steadily, progressively reviving economy.














[img]http://transformationwatch.files./2014/04/nissan-lagos-factory-patrol-sweet.jpg[/img]

Nazeeboy:
Rises by 50% wetin?.......and still I no get car. God is watching u.

U need to go to school my brother. Does the rise mean every Nigerian must have a car?