With the current fuel price who fit buy brand new car now. Except you work for a multinational or a politician

ogododo:
https://punchng.com/local-vehicle-assemblers-struggle-amid-1bn-investment-lament-low-demand/

Should we be surprised, seeing how our president, senators, representatives and other officials are spending billions on imported vehicles while hypocritically telling the masses to buy Nigerian to grow the Naira?

Who is surprised

Jestin:
Na who eat belefull dey buy brand new car. We shall continue to patronise foreign used cars 😂. FTC

Nor be lie......

Tokunbor benz c180........2.5m

Which new car I fit buy for 2.5m wey go last like that German mistake. Very strong car

OgbeniOja1:
With the current fuel price who tit buy brand new car now

Our president, 109 senators, 360 representatives and other officials are buying brand new cars. So…..

But not locally assembled. They are too small for our politicians

seguno2:


Our president, 109 senators, 360 representatives and other officials are buying brand new cars. So…..

swiz123:
If they are banking on the patronage of Nigerians, then they are not serious. How many Nigerians can afford brand new vehicles? Few Nigerians that can will prefer to buy Tokunbo luxury brands.

If your business is not targeted at the many in Nigeria, then you are already doomed to fail.

In the buoyant PDP economy up to 2015, during which Jonathan introduced the Automotive Policy, Nigerians were starting to patronise locally made vehicles, as reported by Tinubu’s economy minister.

‘Last time FX rate was stable was a decade ago’ — Wale Edun speaks on the economy

SEPTEMBER 1, 2023

Wale Edun, minister of finance and coordinating minister of the economy, says the last time the foreign exchange (FX) rate was stable, and interest rates were affordable, was a decade ago. Edun spoke about the state of the economy at a press briefing in Abuja on Friday.

https://www.thecable.ng/last-time-fx-rate-was-stable-was-a-decade-ago-wale-edun-speaks-on-the-economy/amp#

OgbeniOja1:
But not locally assembled. They are too small for our politicians

I hope you are not one of the hypocrites who complain about high unemployment and high costs of food, rent, transportation etc

First and foremost i think the data is faulty.

The share of local automobile plants should be a proportion of the total number of 'new' vehicles demanded by Nigeria, and not of the total number of vehicles demanded because new and used vehicles cannot be categorised together, just as local auto plants do not sell their new and used vehicles in the same lot.

However automobile manufacturing remains a frontier industry in Nigeria that requires all hands to be on deck to succeed. This is where leadership comes to the fore.

I said a few days ago that government is too far removed from industry and businesses such that there are no active policies and programs to make them succeed ultimately.

There are no programs to help them increase local content of their products, there are no programs to help them diversify into allied products that will stabilize their portfolios. There are no programs to help them synergise their capacities so that through scale and specialization costs can be controlled, and many other things government can do.

With this lack of direct government participation how is Nigeria going to be an attractive investment destination.
What factor makes Nigeria attractive for foreign investment , nothing except cheap labour and this will only be relevant to investors that seek to export their offerings. With our galloping inflation we presently have no market outlet for any products of real value.

That is why government has to guarantee investment succeeds and this is only possible with a concise plan towards sustainability.
I don't think this news is good for this country.

jaxxy:
Huge investment doesn't automatically translate to success. That's not how businesses works.

U want to produce a product locally have to thought about the standards or u want Nigerians to drop their standards to patronise u because u are local a manufacturer?

Look at Nigerian music, nobody took it serious until it raised its standards to international standards. Then Nigerians stopped listening or playing foreign music in clubs like b4.

Raise ur standards because nobody will patronise nonsense. it is not quick money it will take u time to develop. Hard truth.

Please try and be diplomatic sometimes. Your response seemed to hash.

jaxxy:
Huge investment doesn't automatically translate to success. That's not how businesses works.

U want to produce a product locally have to thought about the standards or u want Nigerians to drop their standards to patronise u because u are local a manufacturer?

Look at Nigerian music, nobody took it serious until it raised its standards to international standards. Then Nigerians stopped listening or playing foreign music in clubs like b4.

Raise ur standards because nobody will patronise nonsense. it is not quick money it will take u time to develop. Hard truth.

Your points are 💯 valid. You also need to get the buy in of ecosystem members like mechanics. If your car needs to brought into a workshop outside your state then the switching cost is too high.

Nord for instance is very pleasing on the eye and smooth drive but it is expensive. When I went to their site to basically put together an SUV with options - it came to 26m with a manual gear! That is too high for most people but its a steal for government.

Government can look at the tax on CKD kits to lower the price and, subsidize CNG conversion and encourage banks to lend. But should this be governments priority - subsidising cars?

Government can buy these cars easily not individuals.

The best foot forward to improving the situation of local car assemblers in Nigeria is to target the middle-income earning private/public sector workers with a credit scheme.

This is something that white goods / FMCG manufacturers/traders have done successfully in the past and are still doing, especially with bankers.

A three to five years tenured credit purchase, with reasonable upfront contribution, can be a good deal to attract buyers. Additional value can be generous aftersales support for servicing & parts replacement .

Hopefully cost of living will crash in high income countries and cost of automobiles will be around ten percent of current cost after the RCCG issue is attended to

Abeg make them shift. Locally assembled vehicles are are very expensive as the foreign counterpart. Give me one good reason why I should buy an innoson connect hatchback for over 20 million naira when I can use that same amount to buy a clean tokumbo 2013 or 2015 Camry that will still outlast the innoson connect

Charity begins at home. The useless law makers what brand of vehicle do they use.

virginchaser:


Please try and be diplomatic sometimes. Your response seemed to hash.

I'm only giving a reality check situation so investors can know its a long game thing not a quick money back investment..

u can succeed bt u will have to invest in the right areas like technology and build quality of the cars bt u will also have to wait and do marking for gradual patronage.

Look at China even with government policies it was still gradual and took some time. Nigerians don't have patience for longterm investment

swiz123:
If they are banking on the patronage of Nigerians, then they are not serious. How many Nigerians can afford brand new vehicles? Few Nigerians that can will prefer to buy Tokunbo luxury brands.

If your business is not targeted at the many in Nigeria, then you are already doomed to fail.

Their main target is just government patronage and Grant's issued to the industry from time to time.
Except may be for Dangote whose assembled vehicles are directly absorbed by his companies .

Low income of workers is the problem pay
If you pay ₦500000 per month to workers you will see costumers after one year ASAP

Most of them don't even bother advertising to Nigerians. They. Just hope government comes to patronize them.
Anyway Nigerians are too poor to even afford them, z and even the ones who can will go for toks Mercedes or Lexus to maintain "prestige".

designking:
Nigerians can't afford their new cars without auto-credit scheme

Exactly

Have you walked around any city street in Naija and see locally manufactured car lot or a dealership? No, I have not. That’s what the problem is, many would like to buy a “made in Nigeria car” but locating where to buy them is a problem, rather, what you see are foreign used car lots.

If you are going professional, you have to understand economic principles of needs and wants, demand and supply and opportunity cost . If a foreign used car of your specification is #600k, you have to keep yours around #500k because you want more demand for your product and users preference while also keeping in mind that you will offer after-sales services like maintenance and supply of spare parts which usually comes at another extra cost. The objective is to make a brand while keeping the cost easier for the user.

In nigeria...nigerians do not value what they have...they like foreign things too much... attend foreign universities, foreign hospitals for medical treatment, import foreign fuel, disel, kerosene, foreign goods, cars.. that is why this country is like this and the dollars will keep on rising...and tomorrow you want the dollars to be 1 naira to a dollar...

Q

Shey it's the professors that'll be used as fuel or electricity for the industrial plants? Abi they'll be the ones to make the automobiles affordable for Nigerians

AntiChristian:
Despite all those professors of metallurgy, metallurgical engineers, automobile engineers, etc that abound in Nigeria.....

May we get it right!

I think we should be able to buy these technology!

I was at medic West Africa exhibition in Landmark, VI Lagos sometimes ago and I noticed a Chinese inspect products that looked like a refrigerator for vaccines and the likes.

I was fascinated by how he was studying! He later took pictures. I know very soon his company will duplicate that sample!

Incredible128:
Shey it's the professors that'll be used as fuel or electricity for the industrial plants? Abi they'll be the ones to make the automobiles affordable for Nigerians

What intelligence do they have on ground despite the government sponsoring many of them abroad?

The intelligence that has made other countries desire and transform our proffesionals

AntiChristian:


What intelligence do they have on ground despite the government sponsoring many of them abroad?

designking:
Nigerians can't afford their new cars without auto-credit scheme

There has to be an auto-credit and auto warranty plan to support new car maintenance. There is also the issue of spare parts availability.

The country must first complete the steel and aluminium industries and bring back the windscreen and tyre manufacturers because they make up 80% of car components.

eya when the demand that should come from your leaders who are busy splahing 160m on suvs next time vote for competent leaders

Do you know what sarcasm is??

seguno2:


I hope you are not one of the hypocrites who complain about high unemployment and high costs of food, rent, transportation etc

OgbeniOja1:
Do you know what sarcasm is??

Noted with thanks