The automotive policy recently introduced by the Federal Government has gained a strong footing as Innoson Vehicle Manufacturing Company Limited unveils its new IVM Fox hatchback and the IVM Umu saloon cars at the company’s plant in Nnewi, Anambra State.

With the unveiling of IVM Fox hatchback and IVM Umu, which are the first ever truly made-in-Nigeria cars, Nigeria has joined the league of global car manufacturers,  as the vehicles are made up of about 70 per cent locally sourced contents, according to the local content analysis done by the Nigerian Society of Engineers (NSE).

Olusegun Aganga, minister of industry, trade and investment, described the development as another milestone under President Goodluck  Jonathan, who insisted on placing industrialisation and value addition at the forefront of his administration’s developmental policies.

According to Aganga,  the auto policy had dramatically reduced the volume of imported cars by 20 per cent since its introduction, while the president had implemented policies that would diversify the country’s economy and sources of government revenue.

“Some original equipment manufacturers (OEMs) do only 30 per cent but today we are all here making history in Nnewi the Japan of Africa, where we have successfully produced 70 per cent local component cars which is one of the highest. And when you talk about affordability, Innoson is the cheapest,” he said.

Aganga added that other global brands like Nissan, Peugeot and others were driving partnerships and capacity expansion in the country’s auto sector, adding that the current fall of oil price it had become critical that Nigeria should not continue to import what could be produced here locally. 

“We spend about $6 billion annually importing cars. However since the

introduction of this policy, we have experienced a 20 per cent drop in imported cars and have exceeded expectations in a very short period,” he said.

On his remarks, Rasheed Olaoluwa, managing director, Bank of Industry (BoI),  said Innoson was an exemplary customer of the bank adding that this was the beginning of more good things to come from the Bank’s partnership with the company.

“In Nigeria today, there are many companies that are into the car assembly, but today for the first time, we are actually manufacturing cars,” Olaoluwa said.

“The Nigerian Industrial Revolution Plan (NIRP) is beginning to bear fruits in the key areas of competitive and comparative advantages, where we can drive growth and development in the economy,’ he said.

Ademola Olorunfemi, president of the NSE,  disclosed that few years ago when the body paid a visit to the vehicle plant, they were given an IVM Bus to carry out a product analysis on it.

“Today, within two years Innoson has improved on all our recommendations and increased the vehicles local content up to 70 per

cent which is not less than what is obtainable elsewhere in the world,” he said.

He announced that the Innoson Vehicle Manufacturing Company Limited, had been granted permit by the NSE to use its seal, while Innocent Chukwuma, its CEO,  would be inducted into the NSE hall of fame, making him the 19th person in over 60 years of the body’s existence to be so highly honoured.

Nkem  Okeke, deputy governor, Anambra State, commended the Innoson group for the company’s developmental strides, value addition and job creation, stressing that the only way a company like Innoson could  develop was through local patronage.

“It is not only through trade that a nation can develop, but through the conversion of our local raw materials into finished products. Therefore we will continue to support Innoson and other well-meaning industrialists,” he said.

Frank Jacobs, chairman of the occasion and national president, Manufacturers Association of Nigeria (MAN), noted that the feat was a testimony that the Federal Government’s Auto Policy was working.

“The automobile industry bill has not yet been passed by the National Assembly and we are all expecting that it will be done soon enough,” he said.

ODINAKA ANUDU

Source: http://businessdayonline.com/2014/12/auto-policy-gains-traction-as-innoson-unveils-ivm-fox-umu/?utm_content=buffer09fdc&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer#.VIWdXppMW6p