Local content in the production of Innoson vehicles is about 65 per cent, Chairman, Innoson Vehicles Manufacturing Limited, Innocent Chukwuma has said.
According to Chukwuma, the company supports indigenous components and is willing to partner with any manufacturer involved in producing such components locally.
He said the company source some items used in production of vehicles locally while some are imported.
He spoke with journalists recently after a facility tour of his plant in Nnewi, Anambra state.
According to him, when the factory started production 13 years ago, electricity in the country was very poor but today electricity has improved more than when operations started. If it drops, there would be a problem but it has increased ever since.
He said he has facility to test vehicles, stating that if there is need for production, the company is capable of producing 60,000 vehicles yearly.
In his words: “We source some items we used in production of vehicles locally and we import some. For example, I produce plastic components of the vehicle like bumper, dashboards, front grille in Enugu. We are in a position that any item that anybody can localise, we would buy it from them. Any parts we get in Nigeria, we don’t need to import it. But all till today we still import engine.”
He said the essence of producing vehicles in Nigeria is to sell brand new vehicles to Nigerians at cheaper prices but naira devaluation and foreign exchange crisis have skyrocketed the prices.
He said Nigeria is a big country, stating that the focus of the company is to conquer the motor need of people in Nigeria and Africa.
He said: “If you watch in Nigeria today, people are buying second hand (tokunbo) vehicles, so I decided to go and develop motor, if not for foreign exchange, common man would be buying vehicle at a cheaper price in Nigeria. Because of foreign exchange of above N1000, a vehicle cost about N10million now. My intention is to sell a Mini SUV for one million naira. Those who import brand new vehicles, the prices are more expensive. So we are still at benefit.”
He said he has gotten up to 15 contracts outside the country to produce vehicles, stating that he sends vehicles to Ghana, Sierra Leone, and Senegal.
Speaking on why it is not easy to do export within Africa, he said the continent does not have a shipping line that goes round the continent.
“Sometimes when you export to Ghana, the ship will carry the goods to Europe and come back to Ghana. But if we have African shipping line that operates within the continent. Africa has a lot of things that can be shared among each countries.”
