Four key factors that are threatening Nigeria’s new auto policy from being successful have been identified by the Peugeot Automobile Nigeria (PAN).
General Manager Sales and Marketing, PAN, Mr. Bawo Omagbitse brought this to the fore, when a team from the National Defence College visited the company in Kaduna on Monday, when making a presentation.
He identified smuggling through the land borders, derivation of incentives by non-assemblers and inadequacy of infrastructure as the threatening factors.
Omagbitse also stressed that strong resistance by fully built vehicle importers completes the list of the four factors which must be looked into.
On the way forward, he said that the full implementation of the auto plan is a crucial factor to ensuring that local car producers make progress.
“It is also very critical that the National Assembly gives complete backing to the auto policy,” he added.
When asked how delays at Apapa Port in Lagos affect the production of vehicles at PAN, he explained that not meeting customers orders makes them lose some, but added that some customers are endearing.
On local content, he said that they are producing Nigerian cars, not French cars as long as there is a percentage of local content, but desired that the local content reaches between 40 to 45 per cent.
On how many cars will be produced at the plant in 2017, he said an estimate of 1,000 is projected.
“We are looking at producing 1,000 cars in 2017 and market projection is estimated at nine per cent, but the last month of market factors can change that percentage,” he explained.
On potentials of the plant, he said that they have facilities that can help them go into Completely Knocked Down (CKD) production that will see more employment of Nigerians, but are currently producing at their Semi Knocked Down (SKD) facility which requires only few hands.