FG SUSPENDS ISSUANCE OF LICENSES TO NEW VEHICLE ASSEMBLY PLANTS

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The National Automotive Design and Development Council (NADDC) has suspended issuing licences to new vehicle assembly plants, except for direct investment by those who actually built vehicles, known as Original Equipment Manufacturers.
This is contained in a statement signed by the Director General, NADDC, Mr. Aminu Jalal, who explained that “applicants in process would not be affected. This is to enable Council consolidate the vehicle assembly operations and concentrate in developing local content.”
Jalal said, “Our emphasis has now shifted to the development of automotive local content. Sites for automotive supplier parks in excess of 400 square hectares have been acquired across Nigeria and effort is ongoing to acquire more while we are now evaluating tenders by global consulting firms with experience in the establishment of industrial parks. Training Programmes have been launched.”
According to the Director General, the major objective of the National Automotive Industry Development Plan was to bring back completely knocked down (CKD) automotive assembly and to develop local content.
The Council, he said was investing over N5 billion to establish Automotive Test Centres that would ensure that the vehicles and components meet international safety and environmental standards.
Jalal said the response to the policy so far “has exceeded our expectations,” adding that the current status of implementation of the policy was that the 14 existing assembly plants have started assembling new products (cars, SUV, buses, pick-up trucks) since last year.
These plants, he said include, VON Nig. Ltd., PAN Nig Ltd., Innoson Vehicle Manufacturing Nig. Ltd., ANAMMCO Nigeria Ltd., Leyland-Busan Nig. Ltd. NTM Nig. Ltd. and Steyr Nig. Ltd.
He said Nissan, VW, Hyundai, Kia, Honda cars and SUV, Shacman and MAN Trucks and Ashok-Leyland buses were now assembled in Nigeria; and that  11 new companies, including Century Auto (Toyota), TATA, Coscharis Auto (FORD, Joylong, Dongfeng), Dana Motors (Renault), Globe Motors (Higer), Leventis (FOTON-Diamler), Kewalram Chanrai (GM, Mitsubishi) have been given bona-fide manufacturing status and were on track to start assembly operations this year.

…THISDAY