Inline with the developmental programmes of the 2023-Nigeria Automotive Industry Development Plan geared towards enhancing automotive components Integration in the industry, the National Automotive Design and Development Council (NADDC) and the African Association of Automotive Manufacturers (AAAM) on Monday, 19th August, 2024 embarked on strategic familiarisation tour of all the auto parts manufacturers in Nigeria.
The facilities visited on the first day of the tour in Lagos State includes, Mikano Break Pads, Vita Parts Nigeria, Chanrai Nigeria Limited, Vita Visco Nigeria Ltd.
The tour is basically aimed at strengthening relationships among Nigerian auto part manufacturers, and fostering collaboration with the Original Equipment Manufacturers (OEMs) in promoting growth and development in the industry.
Speaking during the tour, the Director General, NADDC, Mr. Oluwemimo Joseph Osanipin stated that the aim of the visit was to focus on component parts manufacturers, as without them, a vehicle cannot move.
He mentioned that discussions were earlier held with components parts manufacturers and auto assemblers.
“The first leg of the visit, whose aim was to assess the capacity of assembly plants is complete. The second phase focuses on enhancing the capabilities of components parts manufacturers” he added.
Accompanied by technical partners, Osanipin emphasized the vast aftermarket that abound in Nigeria for auto parts.
Dave Coffey, the Chief Executive Officer of AAAM praised Mikano International Limited’s machinery quality, highlighting its potential for high product capacity. He emphasized the need for policy support to maximize production, aiming for 5-day, 3-shift operations.
Coffey identified an opportunity to localize production, reducing imports, particularly for aftermarket components. He also suggested collaborating with NADDC to adjust duty structures and target specific products, leveraging Nigeria’s massive market.
Key Points:
- AAAM works with African governments to develop and implement automotive policies and ecosystems.
- Mikano International Limited’s machinery quality impressed Coffey, indicating high product capacity.
- Coffey advocates for policy support to maximize production and localization.
- He identifies aftermarket components as an opportunity for localization and job creation.
- Collaboration with NADDC and duty structure adjustments can help achieve these goals.
Joseph Musa, Managing Director of VitaVisco Nigeria Limited, discussed the company’s struggles and aspirations. Established to supply automotive foam, VitaVisco faces low patronage, forcing them to explore alternative uses for their equipment.
Musa emphasized the need for government support and collaboration with the National Automotive Design and Development Council (NADDC) to revitalize the automotive foam sector. He highlighted the importance of working with Original Equipment Manufacturers (OEMs) to service the industry.
Key challenges - Low patronage
- Lack of enabling environment for parts manufacturers
- Need for government support and credit schemes to encourage local vehicle production
Musa expressed optimism about the government’s potential initiatives to address these challenges, which would enable VitaVisco to serve the Nigerian market effectively.
Key Points: - VitaVisco Nigeria Limited faces low patronage in the automotive foam sector.
- The company has explored alternative uses for their equipment.
- Collaboration with NADDC and government support is crucial for revitalization.
- Working with OEMs is essential for servicing the industry.
- Government initiatives, such as credit schemes, are expected to encourage local vehicle production and benefit parts manufacturers.
The Business Manager of Vita Parts Nigeria Limited stated that the company is an indigenous manufacturer of oil filters, producing various ranges for Toyota, Honda, Suzuki, Kia, and Hyundai. They have two factories: a fabrication factory for raw materials and an assembly plant for finished products. Currently, raw materials are sourced from China due to local unavailability, but efforts are being made to source locally.
“Production capacity is 250,000 filters per day, with scalable lines. The factory has advanced testing equipment, ensuring compliance with Standard Organization of Nigeria (SON) standards. Vita Parts has a strong after-sales record, with no returns since production began in 2021” he said.
“Our filters have a capacity of 20,000 kilometers, surpassing the 3,000-5,000 kilometer range of most market filters.” he added.
Through this direct engagement, the NADDC and AAAM aim to promote Industry growth and development, fostering a more intergrated and cooperative Automotive Sector in Nigeria.
