AUTO HOPE: New car to cost N1.5m as FG inaugurates auto policy committees

A brand new car is expected to cost between N1.2million and N1.5 million when the new auto policy becomes fully operational  in the country.

Minister of Industry, Trade and Investment, Dr Olusegun Aganga, stated this while constituting two standing committees to ensure a seamless implementation of the recently approved National Automotive Industry Development Plan (NAIDP).

Addressing the inaugural meetings of the committees, Director General of the National Automotive Council (NAC), Engineer Aminu Jalal, stated that both standing bodies are to be meeting quarterly so as to enable them progressively monitor and evaluate the implementation stages of NAIDP and ensure that no steam is lost in the implementation momentum of the auto programme; which is a critical component of the Nigerian Industrial Revolution Plan (NIRP) under the Transformation Agenda of the Federal Government.

Engineer Jalal took time to extensively analyse the rudiments of the five-key elements of NAIDP which are industrial infrastructure, skills development, standards, investment promotion and market development.

Under industrial infrastructure, automotive supplier parks are to be established at three zonal clusters where common facilities would be provided for local content makers in order to reduce production costs and strategically facilitate more investments by international original equipment manufacturers (OEMs).

Under NAIDP skills development, there will be extensive local and international manpower development programmes aimed at ensuring that over the next four to six years, skilled positions in all auto industries in the country are occupied by Nigerians.

Under standards, he said NAC is currently building automotive component test centres and laboratories to conduct vehicle homologation and other comprehensive tests of parts and components that would assist automotive makers obtain both NIS and ISO certification and enhance overall product quality.

Under investment promotion, fiscal measures and patronage, the NA boss said strategies are being introduced to create enabling environment allowing existing assembly plants to flourish, while attracting new core investors like Nissan, Renault, GM and Toyota; which had expressed interest to establish plants in Nigeria. For policy consistency, NAIDP is formulated as a 10-year programme (2013 – 2024) subject to review after five years, while its major elements would be legislated over the next two years.

In the early years of implementation, he disclosed that it is expected that most vehicle parts will be imported while Nigeria focuses basically on assembly. NAIDP will facilitate a steady increase in the level of local content of locally assembled vehicles. Specifically, key competences will be developed for local manufacture of specific good quality parts with emphasis on welded parts, electrical parts, plastic and rubber parts, radiator, tyres, cables, filters, brake pads/linings, windscreens/side glasses, fibre-glass parts, paints, etc.

Under market development, he stated that  NAIDP anticipated that higher-end expensive models will still be imported into the country in the initial stage, but the new strategy is to encourage local auto manufacturers to focus primarily on lower-end less expensive models with price range of between N1.2 million to N1.5 million; which is affordable to the middle class, coupled with other finance options.

In addition, he said NAC will collaborate with auto manufacturers, franchise holders, reputable motor dealers and selected banks to put in place an all-inclusive domestic dealership network through which a user-friendly vehicle purchase scheme can be funded by the Council. Tribune