The Honda Automobile Western Africa Ltd (HAWA) stated it is currently experiencing a major challenge sourcing foreign exchange to purchase components.
Managing Director, HAWA, Takashi Nakajima, stated this at its assembling plant in Ota, Ogun state, on Wednesday.

According to him, the uncertainty over auto policy direction is also a challenge. Nakajima said as an Original Equipment Manufacturer (OEM), it needs some stimulation from the government for the market to increase.

He said: “90 per cent of the market is used cars. If we have some regulations around new cars it will help to build confidence in our business. He said: “We have an installation capacity of 1000 per year and daily capacity of three units per day. For now, we are doing 50 per cent of the three units, we do 1.5 units per day because of sales and some other government challenge.”

Also speaking, the company’s Sales Manager, Remi Adams, said that based on data generated through individual efforts, the company has 10 per cent market share of the industry.

He said the company currently lacks patronage from the government which is an enabler of products produced locally. He said: “It is expected that the government would patronize OEMs that produce locally. Largely our sales have been more on corporate firms. Right now, the current government does not patronize a brand that is not produced or assembled in Nigeria. We do things slowly and at a time. The patronage is not there from the government.

“There is something about popularity acceptance. Government, as an enabler, determines what citizens will do, which trickles down to what consumers buy. As OEM, our quality is guaranteed and our relationship with every customer is the same. In the U.S., Toyota is there and Honda is there and Honda is doing well. We have enjoyed patronage and still expect more.”

Speaking on the level of local professionals working in the factory, Adams said the ratio is 99 per cent Nigerians to one foreigner. “You will see Nigerians everywhere. Once the experts are here to transfer technology they go back.” He mentioned that the company tried to source material locally but most of the materials are not up to quality.

Speaking on consideration for electric vehicles, he said: “In Nigeria we are not considering Electric Vehicles because the standards and infrastructure are not in place with the technical know-how.”

He said the company is focused on quality and standards of product worldwide despite the difficult business environment.He said: “Since 2015, we have not closed down our factory. Maybe sales are bad or other issues, instead we reduce the volume we dole out daily. There is always production, the week where production is low; there will be training for such week or period. For Honda, we believe in starting strong and growing bit by bit.”