ROTIMI ASHER
The Managing Director, Honda Automobile Western Limited, Takashi Nakajima, has appealed to the Federal Government of Nigeria to expedite action on legalizing the Nigeria Auto Industry Development Plan (NAIDP).
Making the call recently during a media parley with the motoring press, which also comprised a tour of the company’s assembly plant located in the heart of Ota, Ogun State, Nakajima said failure to have the policy written in the nation’s status book has stifled the growth of the auto industry.
According to him, a continual delay in giving the policy a legal backing is forestalling the company’s assembly plant from operating at a full capacity.
He explained: “Some of the challenges the Nigerian auto industry is currently grappling with are caused by the absence of the policy, resulting in low patronage.
“Sales have decreased tremendously. Almost 90% of the market has disappeared. So, we are not producing what is expected.
“As a result, our assembly plant which has installed capacity of 1,000 units annually and unit capacity of three cars per day is just operating at 50% capacity and that is not encouraging.’’
“Though not limited to our industry, FOREX challenge vis a vis the import of components have constituted another big challenge. We need to pay with dollars. It has become so difficult to access foreign exchange for our components. This is really stretching the company.
“Although I am aware that the policy is now under discussion, we are pleading with the government to fast track the passage of the policy and prioritize the nation’s auto industry in availability of foreign exchange.
Nakajima also appealed to the Nigerian government to patronize Honda HR-V.
“As you know,” he stressed, “the Hi-Rider Revolutionary Vehicle (HR-V) 5 seater SUV is proudly assembled in Nigeria with keen adherence to the Honda global production standards.”
Also speaking on patronage, the Manager, Sales, Marketing and Logistics, Remi Adams appealed to all level of governments in Nigeria to patronize Honda HR-V SUV and other local Vehicles assembly companies, as, in his words, “it will make them visible and acceptable to Nigerians, create employment for our teeming youths and increase our Gross Domestic Product (GDP).”
“There is something about popularity acceptance,” he pointed out, adding, “If government is proud to associate with the quality brands made in the country, individuals and corporate bodies would confidently associating with such brand.
he recalled that : “When the former Governor of Ogun State, Ibikunle Amosun, bought Honda Accord for the State’s Permanent Secretaries during his tenure, the Judiciary also requested for it. They bought. When the federal government used to buy Peugeot in those days, every company was also buying the car.
“Also, because Lagos state government is using a particular Chinese brand as taxis, Lagosians are now buying those vehicles. They are thinking if the government is buying the vehicle, it must be good. So, it is a function of where the government put their weight on and that weight influences what the corporate and individuals do and it trickles down to the used market as well.”
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