Automobile: Local production to phase out Tokunbo cars by 2044 -PwC

Price Waterhouse Coopers, (PwC), yesterday, projected that imported used vehicles popularly referred to as Tokunbo cars will become non-existent as a direct result of local production by 2044.
Speaking at the 2015 symposium/luncheon of the Automobile and Allied Products group of the Lagos Chamber of Commerce and Industry, LCCI, with the theme:” Viability and Growth in The Auto Industry”, Partner, PwC, Mr. Andrew Nevin, said, the company projects that with continued government support, the Nigeria auto industry will begin actual manufacturing with components sourced from within, potentially generating over 6 million new cars locally by 2050 and that imported used vehicles popularly referred to as Tokunbo cars will become non-existent as a direct result of local production by 2044.
” This projected growth requires sustained and effective investment in the auto industry made only possible by the government implementing political, economic and legal policies that create a suitable environment for such investment ” he said.
According to him, in order for Nigeria to fully accomplish its potential of becoming Africa’s automotive hub, available vehicle financing options is very important to encourage patronage of locally assembled cars.
” Research indicates that 63 per cent of Nigerians cannot afford to own a car without some form of support. Unfortunately, consumer lending the country is low and heavily reliant on consumer’s employment status and current earnings. Therefore, banks and other financial institutions need to play a more active part in providing finance and improving the demand for locally assembled cars” he stated.
He said there is need tighten the Nigeria’s borders as it is presently porous and known to be loosely patrolled.
“Cars are the most smuggled goods after food (and particularly rice), between the Lagos and Seme border. Grey market imports are thought to account for half of new vehicles sales in the country. Imports through the grey market are done to reduce or avoid duty payments by declaring false information” he noted.
Chairman, Elizade Motors, Chief Michael Ade Ojo, said, Nigeria is a potential hub for automobile but the necessary potentials for an industry that can employ millions needs to be planned.
” There is room for everyone to proper in this business if well planned, i have been in this business for 44 years, gone through the various stages of growth of the business, it is a potentially big sustainable industry but necessary preparations must be made. Investors must be assured that their investment is not going down the drain” he said.
He noted that if Nigeria has all these vehicles without the roads, then it is a waste, adding that, there is need to put the rail and water transport system in place so that the car owners can enjoy the durability of their cars.