Sell vehicles with 10% down payment, Senator Murray-Bruce tells auto assemblers
Though effort to encourage made-in-Nigeria vehicle is gaining ground through the Nigerian Automotive Industry Development Plan (NAIDP) but the lack of a flexible and affordable payment plan continue to cripple growth in the sector.
Speaking during the visit of Senate Committee on Privatisation and Bureau of Private Enterprise to VON’s vehicle assembly plant in Lagos, Murray-Bruce urged automakers to come up with a flexible and affordable payment plan of 10 per cent down payment, with the installment spread over seven years, as it is done in the US and other competitive markets.
The effects of the lack of finance scheme and current economic slump remain bane to sector development, as the Managing Director of the organisation, Tokunbo Aromolaran disclosed that demand for cars had systematically dropped from 600,000 last year to 350,000.
He said the organisation’s target is to make Nigerians own and ride in brand in cars.The MD said though the plant has the capacity to produce 45,000 units of cars in one shift and 90,000 in two shifts, but only produces 4,000 units due to the economic situation.
He said the number of vehicles produced is so small, with the overhead running cost of the establishment coming back on the few vehicles produced.
He urged the Senators to come to the aid of local auto manufacturing companies, by shutting the doors against importation of fairly used vehicles.
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