Nissan has become the first major manufacturer to assemble a car in Nigeria in response to the government’s “Nigeria Automotive Policy”.
The inaugural vehicle, a Nissan Patrol, has rolled off the assembly line at the Lagos assembly plant.
Go deeper with GlobalData
Nissan says it is targeting significant growth in Africa as the company builds momentum towards achieving its Power 88 goals, a commitment to reach 8% profitability by the end of fiscal year 2016.
The first ‘built in Nigeria for Nigerians’ Nissan Patrol follows the signing last year of a memorandum of understanding for vehicle assembly in Lagos between the Renault-Nissan Alliance and West African conglomerate Stallion Group.
Takashi Hata, Nissan senior vice president and chairman for the Africa, Middle East and India region said: “For Nissan, Africa is our strategic growth driver. Demand for cars is growing quickly in African markets as demonstrated by the first model being produced a mere seven months after the announcement of the new Automotive Policy. By acting quickly to begin production in Nigeria we are securing for ourselves first-mover advantage.”
Nissan South Africa managing director Mike Whitfield, who also heads up Nissan’s Sub Sahara Africa region, said that Nissan sees huge potential in Nigeria. “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 want to play our part in the economic growth of Nigeria and Africa,” he said.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe rollout of the first Nissan vehicle comes shortly after confirmation that Nigeria’s booming economy has now overtaken that of South Africa. Africa’s most populous country is pivotal to Nissan’s mid-term growth plan, which seeks to double sales on the continent by fiscal year 2016, up from 110,000 units at the end of fiscal year 2012.
Nissan’s growth strategy in Africa gained momentum with the introduction in 2014 of Nigeria’s new Automobile Industrial Policy, aimed at stimulating development of the auto industry in the country.
“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 the Stallion Group, already our exclusive distributor in Nigeria,” added Whitfield.
In addition to the Patrol, Nissan also plans to assemble the Almera and NP300, starting in early May.
Nissan’s local partner, Stallion Group, already produces commercial vehicles at its plant in Lagos. The same facility has had its annual capacity expanded to 45,000 units. It will eventually assemble a range of cars, light duty trucks, pick-ups and vans, according to the October 2013 statement from the Renault-Nissan Alliance. Initial assembly of the Patrol commenced in April 2014, with ramp up taking until August, by which time NP300 and Almera KD kits will also be assembled at the plant.
|
Nigeria at a glance |
|
| Population in 2011 (estimated, millions) | 162.5 |
| Population density in 2011 (per square kilometre) | 175.9 |
| Capital city and population in 2011 (millions) | Abuja (2.2) |
| GDP per capita (current US$, 2011) | 1,509 |
| Currency | Naira (NGN) |
| Telephone subscribers, total (per 100 inhabitants, 2010) | 55.8 |
| Internet users (per 100 inhabitants, 2011) | 28.4 |
| Source: UN |
See also: NIGERIA: Kia plans Nigeria assembly plant
