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CFAO Auto Group, French-based automobile distribution multinational, have indicated interest in delivering locally assembled automobiles in Nigeria, following a similar path with number of international vehicle makers keen on establishing a local presence in Africa’s largest economy.

The company’s workshop and warehouse – which expands over 15,000 square metres – located at FESTAC Lagos, a relatively close distance from the Benin (Seme) Border, will be converted to an extensive assembling facility, CFAO MD, Olivier Levigne disclosed recently.

According to Levigne, the automaker will prioritize the assembly of “Mitsubishi and Fuso light trucks and pickups.”

The growing portfolio of international brands enlisting for local participation comes on the heels of the recently delivered automotive policy, which raises import tariffs on wholly assembled used cars.

The policy aims to discourage importation of “second-hand car” and spur local production, forcing the prices of locally made automobiles to drop.

Since its implementation, Nigeria’s has seen a host of global makers including Nissan, Kia, and more recently, Toyota – most of which are partnering with local distributors, initiate preparatory processes for local production of cars, which initial phases starting off with assembling.

Indigenous producers have also sprang up following an increased support from the government, with companies like Innoson and PAN, former local partner of Peugeot, expanding production capacity in recent times.

Source : ventures-africa.com

Posted on : 21 Nov,2024 | News Source : ABNews