[dropcap]C[/dropcap]FAO Motors looks set to establish an assembly plant for Yamaha brand of motorcycles in Nigeria. Already, the auto firm has signed an agreement with Yamaha Motor Company Limited on the motorcycle manufacture and distribution in Nigeria.
A statement by the CFAO Motors said the joint venture, which would be owned 50-50 by both firms would ensure that both companies benefited from the right to manufacture and distribute Yamaha motorcycles in Nigeria.
It explained that the new company would be named CFAO Yamaha Motor Nigeria Limited.
“The premises, which include an assembly plant, will be based in a CFAO multi-activity site in Lagos, and the company has a target of over 70,000 motorcycle sales within three years of the start-up,” the statement said.
Yamaha, one of the world’s leading manufacturers of motorcycles with a presence in about 200 countries, is expected to contribute its manufacturing and marketing expertise to the venture. With a strong and longstanding presence of over 112 years in Nigeria as well as an extensive network in 20 cities and towns in the country, the CFAO said it had in-depth knowledge of the local market, distribution networks and customer needs.