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Stakeholders groan under auto policy mismatch


Vehicle assembling plant. PHOTO:

Vehicle assembling plant. PHOTO:

. Seek scrapping of CKD to develop local components
If the worries of the automotive component manufacturers and vehicle assemblers in the country are anything to go by, government must urgently address what they call poor regulation and policy mismatch.

Indeed, if government failed to act, projected growth, which is expected to build production volume and turn the country into a vehicle-manufacturing hub in Africa by 2050 would remain elusive.

About 41 manufacturers had keyed into the Federal Government’s National Automotive Development Policy (NADP), which is aimed at accelerating production of components and vehicles of international standard in the country.

But for this to become feasible, government must scrap the manufacturing of semi-knocked down (SKD) vehicles, encourage production of complete knockdown (CKD) cars and provide incentives for committed vehicle assembly owners, stakeholders said at a Nigerian Automotive Industry forum organised by the Nigeria Investment Promotion Council and Growth and Employment in three States.

SKD are parts needed to assemble a vehicle, same as CDK, which are parts produced in one country and exported to another for final assembly.

One of the participants, Chief Executive Officer, Truckmasters Nigeria Limited, Tony Areyeka, noted that scrapping the assembly of vehicle at SKD level was unavoidable if addition of local content would be achieved in the sector.

He called on government to collaborate with vehicle brand owners to develop models that were cost-effective, which would be affordable, drive demand and volume of production.

“For me, let us scrap SKD. The only way to develop local components industry in Nigeria is either you are doing a CKD or bring in incentives. To do that we need to focus and go round the 41 manufacturers, inspect for deeds and evaluate claims on investment with a view to retaining and supporting only the serious ones defined by ownership and deployment of feasible assembly and specific assets,” he added.

Conversely, a ban on imported used cars is only one of the important incentives to increase high production volume and local demand for new ones. Founder, Coscharis Group of Companies, Cosmas Maduka, insisted.

But the Director-General, National Automotive Design and Development Council, Aminu Jalal, said used cars constituted about three-quarters of the total automobile market in the country and would be difficult to ban.

“We want people to have value for their money. There is no point in buying a vehicle and from the first day, you are at the mechanic.”

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