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First vehicle rolls off the production line at Lagos assembly plant

FIRST ONE The first Nissan Patrol rolled off the production line at an assembly plant in Lagos in April

Photo by Nissan

23rd May 2014

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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Nissan has become the first major vehicle manufacturer to build a car in Nigeria, following the announcement of the Nigeria Automotive Policy.

The policy, in January, raised import tariffs on fully built-up cars from 20% to 70% for those companies which do not participate in the policy’s programmes. (South Africa has a 25% import duty on passenger cars.)

The inaugural vehicle, a Nissan Patrol, rolled off the production line at an assembly plant in Lagos in April.

The Japanese manufacturer has already, as part of its high-growth markets strategy, opened plants in Mexico and Brazil, with projects under way in Indonesia, Thailand and China.

Last year, Nissan also announced it would be the first global vehicle manufacturer to build cars in Myanmar, following the South-East Asian country’s economic restructuring.

The first so-called ‘built-in-Nigeria-for-Nigerians’ Nissan Patrol follows the signing last year of a memorandum of understanding on local assembly between the Renault-Nissan Alliance and the West Africa-based Stallion Group.

“For Nissan, Africa is our strategic growth driver,” says Nissan senior VP and Africa, Middle East and India chairperson Takashi Hata.

“Demand for cars is growing quickly in African markets. By acting quickly to begin production in Nigeria, we are securing for ourselves first- mover advantage.”

Nissan hopes to double sales in Africa by the company’s 2016 financial year, up from 110 000 units at the end of the 2012 financial year.

Nissan South Africa (SA) MD Mike Whitfield, who also heads up Nissan’s sub-Saharan Africa region, says he is delighted with the assembly of the first Patrol.

“Nissan was a pioneer in the foundation of the car industry in South Africa. Now we are once again at the forefront of manufacturing in Africa, this time in Nigeria where we see huge potential.

“We are grateful to the Nigerian government for implementing automotive legislation that is conducive to investment and that was instrumental in our decision to open an assembly plant in partnership with Stallion Group, already our exclusive distributor in Nigeria.”

The assembly of the first Nissan vehicle comes shortly after confirmation that Nigeria’s economy has overtaken South Africa’s.

Nissan expects vehicle demand to increase in the oil-rich West African country, which is seeing the rapid roll-out of industries such as finance, retail, communications and film.

In addition to the Patrol, Nissan will also produce the Almera and the NP300, starting in early May, followed by mass production in August.

Nissan SA serves South Africa and 42 other countries in sub-Saharan Africa, including Nigeria, Ghana, Angola, Kenya and Zambia.
The company will supply Nigeria with assembly kits for the NP300 from its Rosslyn plant, outside Pretoria, where the pick-up is assembled.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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