miteolu:

I can feed your generations

with nairaland notes

miteolu:


No insult, how many Toyota Prados can you get in 1.7b not to talk of other brands. Nation Assembly what to use N5billion to buy Toyota Prado for about 460members.

Take your calculator or consult Ifa.

U are not getting me, the cost of the car assembly plant is not 1.7billion, he only invested 1.7 billion, they were other investors too, but his own was 1.7billion. He didn't say the plant cost 1.7 billion. I nor know how i wan take explain am pass

autojosh:
Dr. Cosmas Maduka, the President of Coscharis Group, recently lamented about his decision to invest N1.7billion in an automobile assembly plant in the country.

His lamentation is as a result of the effect of the hesitant implementation of the auto policy in the Nigeria auto industry by the Federal Government.

Maduka is one of Nigeria’s biggest investors in the automotive sector. His company, Coscharis Group, built an auto-assembly plant on a 14-hectare piece of land in Awoyaya area of Lekki-Epe expressway, Lagos. The project is in conjunction with Ford Motor Company.

The plant was inaugurated in October 2017, with an installed capacity for 60 units of vehicles a day.

According to the Coscharis boss, the projections of growth made by his company and other automakers who responded to the policy by building assembly plants – some in collaboration with auto manufacturers from different parts of the world, have been shattered by lack of progress and uncertainties in the industry.

He expressed pessimism about recovering the huge investment he made in the sector in 10 years based on the initial projection of selling 10, 000 vehicles annually. According to him, the current total yearly sales figure has been far below 2,000 cars.


According to the Nnewi-born businessman, he regretted investing more than $50 million {about N1. 7b} in setting up an assembly plant in Lagos.

“Of course, I regret the investment! Why would I not regret the investment? From the benefit of hindsight today, you think it is something that is waste, but at the same time, it is also premature to take a conclusive decision, because, till today, the Federal Government is still hesitant. They {government} have not said a definite ‘yes’ or ‘no’ to the auto policy.”, he reportedly said.

He, however, restated his belief in the policy encapsulated in the Nigeria Automotive Industry Development Plan (NAIDP) that, he said, was necessary for a viable local auto-manufacturing sector. The problem, he argued, is in the lukewarm implementation by government.

Cosmas Maduka made his feelings known while assessing the NAIDP which took effect about five years ago on July 1, 2014,  and the delay by the Presidency in assenting to the Fiscal Incentive and Guarantees Bill that would have given it a legal framework.



Source:

https://autojosh.com/i-regret-investing-n1-7billion-on-vehicle-assembly-plant-coscharis-boss/

.....only God knows the problems of you Easterner,the last someone here said ,you never knew what you want ,just like the mind of an average woman ,I thought he doesn't know what he was saying,but I later realised that,he has seen you guys all .....were you not the same people that keep blaming PMB for the policy on rice ,we kept hearing you guys tongue-lashing him that ,he should have exercised patience in banning foreign rice since we are very low in output,....now same man decide to exercise the same patient by not rushing to ban importation of cars ,and try to look at how to tackle the problems without affecting the common man ,if I may ask you ,how many Nigerian can afford brand new cars even if it was assemble here in Naija??..or name the number of your family members that can boastfully says they have bought their car as tear rubber??..This your hatred for this man ,I hope will not lead to high BP ....

Reference:


Oga that is not how it works. Industrialization is the only, I repeat only way for a nation to prosper. There is just no other way. What happens is that government leverages on industrial capacity to trigger a revolution. If you want cheaper cars the only way is to start making them and then drive down the cost via scale, technology and independence. As you incentify allied industries to supply parts and components you create other industries and the quantum of jobs trigger prosperity.

It is hard at the beginning but that is where government steps in with incentives to protect industry until they are strong enough to sustain themselves. What government should have as an overiding policy is to drive down the cost of goods and servicces and raise the purchasing power of its citizens. To try and bridge the prosperity gap. How else do you do this if you do not have a deliberate industrial policy.

Dangote's refinery will soon be completed and after that the petrochemical plant. Doesn't it make sense if this man's assembly plant and that of Innoson and others be immediate and automatic consumers and customers of his petrochemical products. Will this not drive down the cost components of the imported alternatives.

Why is government so unaware or blind to the fact that massive opprtunities exist to tie in for instance Dangote to the overall industrialization of Nigeria. All it takes is to incentify another industrialists to invest in vehicle component manufacturing. To take Dangote's petrochemical products for instance and turn them into dash boards and other car parts and components at a fraction of the cost of imported alternatives and creating thousands of jobs in the process.

Poverty like prosperity is systemic. When all parts are in place it takes only a spark of genius to turn the country around. Industrialization is like a net or spiders web. A nation's capacity to sustain productivity is only as strong as its weakest industrial link. It is a crime for government to sit by and watch its industrial interests go moribund.

While you're right, social media economists criticised Buhari's mandate to the CBN to restrict forex for milk importation. If Buhari implements a similar policy to the auto industry, same people will criticise the move. It's a pity that Cosmas faces this issue but Buhari's hand is tight on the issue and I cannot blame him.

OP. When did $50m become N1.7bn? When only $3m is N1bn?

tutudesz:
Cosmas Maduka is very funny. You are the major importer of BMW and Range Rover in Nigeria and you want government to implement the Bill because you set up assembly plant for Ford?

He's not the only individual venturing into vehicle assembling. The Indians behind Stallion are doing same with Nissan and PAN with Peugeot.

dokyOloye:
In summary, osama buhari has refused to enforce implementation d auto industry bill started in the glory days of GEJ.

If implemented, can you afford the new cars? I hope you know if implemented, you can't bring used cars of more than 3yrs into the country

Blakjewelry:

wrong maths, $50m should be around 18billion

what i mean is that he needs way more than that amount to start a worldclass plant.

safetyInspector:
As an online miscreant that masturbates over Igbo issues I least expected you to know about it because he is not an Igbo man.

Nah Yaruba then ... you better go and pack your gala carton before rain scatter everything for you

Naija

Can someone translate this as I am struggling to relate this to Madukas regret? Is this in support of his statement or a rebuttal or just an irrelevant off topic response?

straighttalk:
You are only being business oriented. Businesses are all about being bold and courageous to take risk

ehn ehn so you are a learner while your friends are investing in lucrative and positive things like alcoholic drinks like adonko bitters, naira bet, bet naija, prostitution, building hotels, sex trafficking, smuggling young innocents girls INI Italy for prostitution, cigarettes, Indian hemp, marijuana, tramadol, paraga, alomo bitters, codeine syrup, baby oku and to mention just a few

you are not ranting and telling us stories!!!!
abeg get out of here!!!

wailers will always cry as usual. do you know what this guy is saying? he is saying that the government should ban all car imports (tokumbo) and impose higher levies on new one so as to boost car sales produced in Nigeria. recently when this was done in the agricultural sector most of these wailers were insulting the president. now they want the same for cars. anuofia

Cherrybae:
Very useless ugly wicked broke igbo man and Igbos supporter.

Nonsense

Will this cause your smelly pussy to stop or you ugly looking species to look better?

Vehicle plant to sell 10,000 vehicles annually in a country where majority of the 200 million can barely afford a bicycle let alone brand new cars?

While I agree the government needs to stop being hostile to entrepreneurs especially our own people, I also believe there is need to choose the right kind of investment. For me, a domestic car plant should aim to produce brand new cars not more than 1 million naira and see if they won't be struggling to meet demand.

Just tell us you are no longer getting those senseless waivers that the previous government was giving you. A new party is in power now. Join APC bro

IamCharles123:

U are not getting me, the cost of the car assembly plant is not 1.7billion, he only invested 1.7 billion, they were other investors too, but his own was 1.7billion. He didn't say the plant cost 1.7 billion. I nor know how i wan take explain am pass

No. Read the article again and tell me what $50 million is in Naira.

sacramento1212:


No one is discouraging them from thriving and infact because of the manufacturing/assembling of cars locally, importation of cars became more expensive not even for brand new but also fairly used ones even though not factoring exchange rate to procure these vehicles.

Currently in Nigeria when compared to in the past, how many companies are buying brand new cars? In the past, a brand new Toyota Corolla used to sell for less than #4,000,000 but today it's almost times 3 of that figure.

In the past companies like Briscoe and Elizade i guess only stock brand new cars but today, they also sell fairly used even though certified to enable them remain in business. Where these car assembling or manufacturing companies willing to establish various plants in Nigeria get it wrong is that it seems they want the government to shut down importation of cars in Nigeria to enable them thrive, that's where they will get it wrong.

Government has even assisted them by even a massive increase in import duties/clearing cost to discourage import and for now that's a fair deal for anyone willing to invest in this sector.

You mean Bristol and Elizabeth sell [/b]Tokubo cars?[b]

ubcandid:

You mean Bristol and Elizabeth sell [/b]Tokubo cars?[b]

I am 100% sure of Elizade Nigeria. But not completely sure of Briscoe because i was only notified about Briscoe by a colleague.

sacramento1212:


I am 100% sure of Elizade Nigeria. But not completely sure of Briscoe because i was only notified about Briscoe by a colleague.

I hope theirs is not those road side ones that deceive people? Not faulty ones?

miteolu:
N1.7billion is small for a successful vehicle plants.

It's not funny, stop your foolish joke before you get banned....rubbish human being

Skmoda360:

It's not funny, stop your foolish joke before you get banned....rubbish human being

Ban on earth or heaven?

ubcandid:

I hope theirs is not those road side ones that deceive people? Not faulty ones?

Trust me Elizade Nigeria used vehicles are certified. Nothing like deceit. You can go there and see for yourself. I guess their combining brand new and used was to make them also competitive because many companies are buying used as against brand new vehicles except for those that are highly financially bouyant enough to spend much on liabilities.

miteolu:



Ban on earth or heaven?

The guy even dey open mouth to laugh...were re oooo

sacramento1212:


Trust me Elizade Nigeria used vehicles are certified. Nothing like deceit. You can go there and see for yourself. I guess their combining brand new and used was to make them also competitive because many companies are buying used as against brand new vehicles except for those that are highly financially bouyant enough to spend much on liabilities.

That's cool. Thanks for the info.

No sane investor invests in Nigeria!

Gerrard59:


He's not the only individual venturing into vehicle assembling. The Indians behind Stallion are doing same with Nissan and PAN with Peugeot.

He is only interested in the bill because of his assembling plant is now completed, when others were building theirs he kept quiet about the bill and was busy importing cars.

tutudesz:

He is only interested in the bill because of his assembling plant is now completed, when others were building theirs he kept quiet about the bill and was busy importing cars.

Well, he is a capitalist not a philanthropist. When he was constructing his, what were others doing? Should there not be a reward for diligence?

Chiefochiefo:
The ones you gain before nko?

I guess you are underage to have made this statement

Useless blogger, $50 millions is not N1.7billion now or in 2017. We know calculations, it’s way above N 1.7billions.

Gerrard59:


While you're right, social media economists criticised Buhari's mandate to the CBN to restrict forex for milk importation. If Buhari implements a similar policy to the auto industry, same people will criticise the move. It's a pity that Cosmas faces this issue but Buhari's hand is tight on the issue and I cannot blame him.

Buhari is going about it the wrong way....


You have to support and prop local producers FIRST
Give them ALL INCENTIVES FIRST
Once that is done
You can then pull the rug off the feet of the importers

Pulling the rug first, while local producers are still facing handicaps and inefficiency
Would lead to double tragedy

That is the mistake
Local producers must be given all INCENTIVES FIRST

Look at the issue well.

The auto policy prescribes banning virtually all car imports outright. If you think cars are expensive now, wait until they ban cheaper used car imports.

What government should do is buy and encourage companies to only buy new cars that are assembled locally. They could ban large scale imports of NEW cars but leave used cars for the masses.