Honda Automobile West Africa (Nigeria), a subsidiary of Japan’s Honda Motor Co., Ltd., believes that the low approval rating for Nigerian-made cars is due to gray imports, a large number of used cars, and inconsistency on the government’s part. He blames it on policy.
During a media tour of the company’s factory in Ota, Ogun State, HAWA Managing Director Takashi Nakajima said the Honda HR-V assembled at the factory takes into account the special nature of Nigeria’s roads and environment.
He said the model assembled in Nigeria has higher ground clearance.
“The 2023 edition is known for packing a ton of utility and clever features into a compact package, and has been completely redesigned for 2023. It also has a more sophisticated look. But unfortunately, our production capacity is low in Nigeria due to the gray import market and low government patronage.”
Among the operational issues, he said, are foreign exchange issues and a lack of dollars to buy goods and parts for manufacturing.
He also cited the uncertainty surrounding the auto policy currently under discussion as 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. Any regulation around new cars would help build confidence in our business.
“We have an installation capacity of 1,000 units per year and the ability to assemble three units per day.Currently, due to low sales and other challenges, we are only doing 50 per cent of the three units. So we’re running 1.5 units per day.
“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 are 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.”
He maintained that although production numbers have been reduced from an annual introductory capacity of 1,000 vehicles, the car company will continue to maintain the quality standards it has been known for since its inception in Nigeria 44 years ago.
Takashi said the company is the sole distributor of Honda new vehicles, HGMO and genuine Honda spare parts in Nigeria, adding that Honda Automobile West Africa (Nigeria) is the first Honda vehicle assembly plant in Africa. .
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 to one foreigner.
“You see Nigerians everywhere. When experts come here for technology transfer, they go back,” he said.
He said the company tried to source materials locally, but most of the materials were not up to quality.
“As Honda, we can say that the key action that the Federal Government needs now is to adopt a purchase scheme with single-digit interest rates. This is a commitment made by the Government before commencing parliamentary action, All we are asking now is for the government to fulfill its promise,” he said.
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.
The company began importing new Honda vehicles in late 2013 and added Honda Genuine Motor Oil (HGMO) and Honda Genuine Spare Parts imports to its line in early 2014.
From an automotive policy perspective, the company started a semi-knocked down (SKD) assembly plant project in Ota, Ogun State in 2015.
The plant produced and launched the first generation SKD Honda Accord, assembled in Nigeria, on July 10, 2015, after obtaining the status of a certified vehicle manufacturer and assembler.