CFAO Auto Group looks at entering the Nigerian car manufacturing market
France’s multinational company, CFAO Auto Group has showed interest in delivering locally manufactured vehicles in Nigeria. This was after the automaker has seen potential in the local markets and intends to imprint a strong foothold in the biggest economy in Africa.
According to CFAO’s Olivier Levigne, the automaker’s warehouse and factory would be turned into an assembling facility. The 15,000 square meter facility is located at FESTAC Lagos which is near from the Benin Border.
The car maker would give priority in assembling vehicles from “Mitsubishi and Fuso light trucks and pickups”, reported Ventures Africa.
International companies have been entering the local scene after the government has raised tariffs on imported wholly assembled second-hand vehicles through its automotive policy. The new ruling has been directed putting off imported used cars from entering the local markets. This is because locally produced vehicle prices have been massively dropping off.
Since the new policy has been implemented, multinational car manufacturers including Kia, Toyota and Nissan has entered the Nigerian market. Most of these international automakers have partnered with local distributors for local vehicle assembly and production.
Join the Conversation