Bennett Ogifo
Despite the economic downturn affecting the country’s manufacturing industry, Honda Automobile Western Africa Ltd. continues to move forward after 10 years of operations and 8 years of SKD assembly in Nigeria, while its two-wheeler division The same situation has existed since the factory began operations in 1979.
Although production has been reduced from an installed capacity of 1,000 vehicles per year, the car company insists it will continue to maintain the quality standards it has been known for since it was founded in Nigeria 44 years ago.
During a media tour of the factory in Ota, Ogun State, HAWA Managing Director Takashi Nakajima said the company is currently facing currency issues and lack of dollars needed to purchase products and parts, among other operational difficulties. He said he was facing. Manufacturing industry.
According to him, the uncertainty surrounding the automobile policy currently under discussion is also a challenge, adding that the policy direction is not yet stable.
Nakajima said that as an original equipment manufacturer (OEM), some stimulus from the government is needed for the market to expand.
For example, he said: “Ninety percent of the market is used cars. Having some regulation around new cars would build confidence in our business.”
The company has an installed capacity of 1,000 units per year, which could double with more support from customers and the government.
“We have an installation capacity of 1,000 units per year and the ability to assemble three units per day.For now, due to low sales and other challenges, we are running 50 per cent of the three units. So we’re running 1.5 units per day.”
Honda’s managing director said that based on data collected through separate initiatives, the company has a 10 percent market share of the industry.
He said the company currently lacks support from the government that would enable locally produced products. “We are ready to supply to the government. As the only OEM in Nigeria and the only assembler in Ogun State, we expect support from the state government, but we are not shutting down. Hmm. Most of our sales have been to corporations.”
“There’s something about popular acceptance. Governments as enablers decide what the public does, which influences what consumers buy. As an OEM, our quality is guaranteed. and every customer relationship is the same.”
Remi Adams, Head of Sales, Marketing and Logistics at HAWA, said the level of local professionals working at the factory was 99 per cent Nigerian and one foreigner. “We see Nigerians everywhere. When experts come here for technology transfer, they go back.”
He said the company tried to source materials locally, but most of the materials were not up to quality.
“As a Honda, I can say that the key action that the federal government needs now is a hire purchase scheme at single-digit interest rates. This is a commitment the government made before it began operating in parliament. All we are asking now is for the government to deliver on its promise.”
Regarding expansion into petrol and electric vehicles, he said, “The aforementioned HAWA has not yet considered electric vehicles in Nigeria because the standards and infrastructure are not in place and the technical know-how is not in place.” Ta.
HAWA focuses on product quality and standards worldwide despite the challenging business environment.
“Since 2015, perhaps as a result of poor sales or other issues, we have not closed any factories, instead reducing daily deployment volumes. There is always production, but there are also weeks with low production. There is such a week or period of technical training for the staff. For Honda, we believe we will start strong and grow with it.”