Dangote Peugeot Automobile To Assemble Over 3000 Cars Monthly

…As:

…220 vehicles imported into Nigeria daily

…400,000 vehicles imported between 2015 and 2020

…Nigeria spent N1.8 trillion

…Automobile sector contributes about 9.20 per cent to the GDP

The Nigerian automobile industry records significant development as Dangote Peugeot Automobile Nigerian limited (DPAN) kicks off to assemble over 3000 cars monthly.

By daily assemblage, the plant particularly plans to assemble 120 vehicles daily.

To put action to words, the automobile plant has begun assembling vehicles with the Land Trek, 3008, 5008, and the new 508 already for sale.

Also, with a capacity to assemble  120 vehicles daily or about 3, 720 vehicles monthly, the automobile company will reduce the number of cars imported daily into Nigeria.

Bear in mind that the parent company of Peugeot, Stellantis Group, jointly owns the assembly plant.

It owns the plant with one of Dangote’s subsidiaries, Dangote Industries Limited.

Also, the Kano and Kaduna states’ governments equally have major stake in the company.

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Aliko Dangote, who is currently Africa’s richest man, according to Forbes billionaire ratings, currently holds major stake in the automobile.

The business mogul is also building the largest single-train refinery in the world.

What you should know:

Dangote Peugeot Automobile company is assembling the vehicles at the new Greenfield Ultima Assembly plant in Kaduna.

Meanwhile,  the Africa’s richest billionaire’s conglomerate has a joint venture with Sinotruck.

The assembly plant  a $100 million auto company that assembles trucks and cars in Nigeria for local use and export.

A statement by Ibrahim Issa Gachi, the Managing Director of the new plant, said the company is re-establishing contacts with Peugeot dealers to roll out the cars.

Dangote’s automobile plant incubated since 2016 when the Kaduna State Government, Dangote Group and the Bank of Industry (BOI) bought the majority shares of the defunct Peugeot Automobile.

The plant further became a reality in 2017 following news that Dangote got the license to establish a Peugeot plant in Nigeria.

Meanwhile, Dangote’s automobile will join Nigerian indigenous automobile company, Innoson Vehicle Manufacturing company to satisfy the increasing demands by the automobile sector in Nigeria.

For instance, In 2020, Nigeria’s Vice President, Yemi Osinbajo, said demand for vehicles in Nigeria stood at about 720,000.

He had said that the figure was against actual local production by the available assembly plants.  at about 14,000 capacity.

Although he had said that available assembly plants in the country had about 14,000 , the country, however, imports approximately 220 vehicles daily.

This amounts to about 6, 820 vehicles monthly.

Also, it means that about 80,300 vehicles come to Nigeria annually compared to the 14,000 that are ‘manufactured’  locally.

Likewise, a five-year import analysis shows that Nigeria imported about 400, 000 vehicles between 2015 and 2020.

Reports show that Nigeria and Ethiopia are the largest importers of used cars in Africa.

Also, between the two countries, Nigeria tops.

Although the Minister of Finance, Budget and National Planning, Zainab Ahmed, had said the automobile industry contributed about about 9.20 per cent to the GDP, over reliance on importation kills local production.

Consequently, the heavy reliance on importation of vehicles sadly cost the country about N1.8 trillion.

Nevertheless, Nigeria’s indigenous vehicle manufacturing company,  Innoson Vehicle Manufacturing company, has refused to be let local production go defunct.

With its many plants, the automobile manufacturing company situated in the Eastern part of Nigeria manufactures cars locally.

Its manufacturing plants produce at least 32,000 vehicles annually.

Therefore, with the Dangote assembly plant joining the market, hopefully, heavy reliance on  importation would reduce.

Meanwhile, a country’s economic development cannot be detached from the huge transport demands of its people.

Therefore, the availability of many automobile companies is a pointer to economic growth of the country.