How Auto Policy Can Work In Nigeria – Kia Motors
Chief Commercial Officer of Kia Motors, Sandeep Malhotra, has implored the federal government to clamp down on the unchecked influx of imported used cars popularly known as “Tokunbo” vehicles into the country.
He said at the recent media tour to the company’s auto plant in Lagos that the development is the best way to make the Federal government’s auto policy work and revolutionize the sector with a view to boosting the nation’s internally generated revenue.
He said: “If the policy holds sway wherein 70% increased duty is implemented and the prices of used cars soar higher, there will be an attendant shift in the demand and customer preference, which will directly impact on the supply of locally assembled new cars in the country.”
He disclosed that his company’s plant has the capacity to produce 27,000 vehicles in a year, adding that there is a provision to increase the production lines which is dependent on the demand. In view of this, auto companies will only break even if there is an increased demand which reduces the total cost of production.
In his address, Chief Operation officer of the company, Gitesh Yagnik, said the plant now prides itself on the production of 9 models and their respective trims in the country with over 2500 units rolled out since its launch in April 2014.
He said over 85% of the employees are sourced locally from top Nigerian universities in order to help alleviate the rate of unemployment in Nigeria.
Source: Daily Trust