After about two years of considering the idea of developing an automobile assembly hub in Nigeria, the Kewalram Chanrai Group has introduced a manufacturing plant in Lagos with the revealing of its first Foton truck.
The Deputy Managing Director, Kewalram Chanrai Group, Mr. Victor Eburajolo, said at a press conference preceding the inauguration that the auto assembly hub had been built with installed capacity to roll out 198,000 vehicles and motorbikes annually.
Eburajolo gave the breakdown as 12,000 units of trucks; 30,000 units of cars and mini-buses; 36,000 units of three-wheelers (tricycles); and 120,000 of two wheelers (motorcycles).
He also stated, “Today, we’re launching an auto assembly hub; we are going to start with Foton trucks. We’ve already completed one that will be delivered today.
He added,“We are also going to produce Izuzu mini-buses. In due course, we shall assemble Chevrolet cars and SUVs. We have also signed agreements to assemble three wheelers, and of course, two wheelers. The bike is a Hero brand; while the three-wheeler is a Piaggio brand.”
The company would be starting with the Foton truck assembly, which would run on two shifts, according to him.
” We can go on three shifts if its necessary. We will wait for the demand to grow to increase our capacity. And if it grows, we can have four gangs of three shifts,” he added.
The policy, announced in the last quarter of 2013, favors auto companies assembling or producing vehicles locally with zero to 10 per cent import tariff on vehicle components. But importers of fully built vehicles without assembly plants in Nigeria are to pay 70 per cent duty on cars. The rate was raised from 22 per cent.
According to him, the decision to go into vehicle assembly is in compliance with the auto policy of the Federal Government.
