‘Buying Toyota or Innoson is a matter of choice’

Chief Innocent Ifediaso Chukwuma is the Chairman of Innoson Vehicle Manufacturing (IVM) Nnewi, manufacturers of quality high capacity city buses, safe and cost-effective mini and midi buses, pick-up trucks and garbage collecting vehicles. He is also the owner of General Tyres and Tubes Co. Ltd Enugu, manufacturers of high quality tyres and tubes. He is owns Innoson Nigeria Ltd, manufacturers of motorcycles, tri-cycles, spare parts and accessories, Innoson Tech and Industries Co. Ltd, manufacturers of high quality household and industrial plastics, health and safety accessories, storage containers, fixtures and fittings, electrical components and accessories. His company is third after Leventis and Boulos Enterprises in assembling branded motorcycles in the country. Born in 1961 at Umudim, Nnewi, Anambra State, he is the last of six children born to Mr and Mrs Chukwuma Mojekwu of Uru-Umudim Nnewi, Anambra State. After his education, he started trading in spare parts under the name Innoson Nigeria Ltd in 1981.

He has won many laurels and awards in recognition of his achievements including the national honours of the Officer of the Order of the Niger (OON) by the late President Umaru Musa Yar’Adua, National Productivity Order of Merit (NPOM) and Nigeria Centenary Honour Award by former President Goodluck Jonathan in recognition of his role as the first indigenous local vehicles manufacturer in Nigeria and employer of labour. He spoke with DEBO OLADIMEJI on the journey so far in the industry and the way forward for manufacturers in Nigeria.

Why did you decide to go into manufacturing?
I decided to go into manufacturing because I feel that is the way to move the country forward. Because if we are trying to do what we are using here by ourselves all these problems of foreign exchange will reduce.

Are you manufacturing the parts of your vehicles here?
I produce sixty per cent of the vehicle in Nigeria right now.

Where do you get the remaining 40 per cent?
I get them from any possible source.

Who are your target market?
Africa is my target market.

How affordable are your vehicles?
They are cheap. My price is good. As you have seen here that many motor companies have increased their prices. Our increment is 15 per cent.

Which type of vehicles do you manufacture?
We manufacture according to models. According to what the person wants. We have about nine models. We are into buses. We produce seven to 45-seater buses. We produce pick-ups and four-wheel drives. We produce cars, 1.8 litre and 2.4 litre.

Why is it that most of your vehicles are not on Nigerian roads?
Have you not been seeing my cars on the road? As you are seeing them here another person is seeing them in Kaduna, Port Harcourt, Lagos, Abuja and other places. You can’t see all by yourself, people will be seeing them in different areas they are.

What is the level of patronage?
The patronage is going on well. People are in love with the product.

How are you coping with competitors in the industry?
Any business that doesn’t have competitors is not good. I like competition.

What then gives you an edge over others?
What gives me edge is because I am manufacturing sixty per cent here.

Does that make your vehicles cheaper?
It makes them cheaper. They are rugged for our roads. People like them. That is what gives me the edge over others.

How expensive are your vehicles?
It depends on the one that you choose. We have so many models. When you go to our showroom you make your choice.

What are the challenges you are facing in the industry?
Everyone in Nigeria knows the situation of everything. This is a new government. Everything is taking shape. After sometime, everything will be okay.

How have you been able to weather the storm in the industry?
If you are ready to work, you can reach the peak of your profession, no matter the area. If our area has vast land I will be a farmer. One tomato is now N150.

Recently you went to the National Assembly to introduce your cars, what is the level of patronage from them?
I went to the National Assembly to introduce my products to them. That is what I am supposed to do for them to know the types of products that I have. I have done that and their responses are coming. About six National Assembly members have bought vehicles from me. The impact is coming.

Is it true that most of them prefer to go for Prado Jeeps?
It is a matter of choice; people buy things according to what they want. Nobody can influence your choice. People like Prado, people like Innoson. That is why when you were asking of the price, I said you have to go to showroom. They will give you the price according to what you want. So buying Prado, buying Mercedes, buying Innoson, Toyota or Nissan is a matter of choice.

What is your production capacity?
My production capacity is 300 vehicles per month. After my expansion, I can be able to produce 500 vehicles per month. Right now we are expanding our business.

We used to have some assembly plants in Nigeria like Volkswagen and others. Why did they fail?
I don’t know why those assembly plants failed. I have not visited them.

What more are you doing to convince Nigerians to buy your products?
They have seen my products and they are interested. The business is going on well.

What do you think that the government can do to reduce the cost of production for car manufacturers?
Forget about the government. Government cannot do everything for you. Government will only provide good environment for industries to grow.

More industries should be established. If there are more industries in Nigeria the cost of production will come down.

What about the issue of electricity and other things involved in production?
If we have this type of my industry like 10 in this area, we don’t need to ask for electricity from the government. We can step down our own electricity and it will work. But because I am the only one here, I cannot do it alone. That is why it is good to establish more industries so that things will work.

If anybody wants to invest in electricity here, because they are so many industries, the person will invest and it would be cheap for the industries to get electricity and it will reduce the cost of production.

Why do you think that most Nigerians still go for Tokunbo cars?
Most Nigerians still buy Tokunbo (fairly used cars from overseas). After some time they will stop buying Tokunbo cars. It is stopping gradually. It cannot be automatic because if that happens, they will not see enough new ones to buy. Before nobody buys new cars but now people have started to buy new ones. Before, Tokunbo have pushed new cars out but, today, because of localizing the automobile industry in Nigeria, people are now buying new ones direct from the factories. So they are getting used to it.

What is your staff strength?

My total direct staff is 7, 300. My duty here is to train my workers to work. They have to work. If I employ you and you cannot work, we train you to work. If you want to be playing you don’t want to work.

Are you satisfied with government’s impact so far in the industry?
Have you not seen the impacts of their good governance? The impact is coming in slowly. Just be patient. They are making what is not working well before to be working. Nigerians are happy. A lot of things had gone bad before they came in they have to reorganize things. My advice for Nigerians is for everybody to be patient for this new government to plan the country.

The President is doing things that will make Nigerians to be happy forever. Nigeria would soon be one of the best countries in the world. The President is doing everything possible for Nigerians to smile forever.

Why did you travel to China with the President?
That is why you will understand that the government is doing things to move the country forward. To make sure that Nigerian economy is good. That was why he travelled to China to see the way to cooperate with Chinese government. To be in good relationship, so that things will be easy. They are bringing in good ideas to help the economy.

What do you think that we can gain from the Chinese technologically?
We are learning technology from the Chinese. They are more advanced than us so we are learning from them. It is for our benefit.

How did you start your business?
I started by doing petty trading. From trading I thought of assembling motorcycles. From there I delved into a plastic plant and from plastic plant, I established a tyre plant. From there, I went into motor manufacturing. And all the factories are working perfectly.

Looking back what has been your greatest achievement?
When I see my workers going home on a daily basis, it makes me happy that my workers are happy. That 7,300 people are happy because of me. I think it is one of my achievements.

Are there other things you are doing to give back to the society?
To set up an industry to employ people, do you think that everything is profit? Those things are giving back to society, too, because if I fixed the money in the bank…I will not even pay evidence tax. But I put the money in the industry to employ people and the people are working for me. They are making their own money, feeding their families and everything is working for them. Employing people to put food on their table and giving each village N50, 000, which one is better?

Do you think that people should be trained in school on how to become entrepreneurs?
When you have good education background it will help you move fast. Education is important in everything. Work hard and bring fresh ideas into your work. The third one, make sure that anybody you deal with will find you worthy again to deal with. With that attribute, you know that your future is bright in entrepreneurship.

What is your advise for upcoming entrepreneurs?
They should try to be serious in everything they are doing. They should work hard and they will go far. I believe that anything you are doing, if you do it well you will succeed.

What do you do to unwind?
I am a tennis player. I have been playing tennis three times a week for over twenty years.

Future plans
My plan is for my motor to be used in all African countries. It is now being used in Nigeria but I want it to be used in all African countries.