NADDC, AAAM pledges to support Nigeria’s local auto component makers

Inline with the developmental programs of the 2023-Nigeria Automotive Industry Development Plan geared towards enhancing automotive components Integration in the industry, the National Automotive Design and Development Council (NADDC) and the African Association of Automotive Manufacturers (AAAM) with headquarters in South Africa last week concluded a weeklong strategic familiarization tour of all the auto parts manufacturers in Nigeria.

The local component sites visited on the first day of the tour in Lagos on August 19, 2024 are Mikano Brake pads, Vita Parts Nigeria, Chanrai Nigeria Limited, Vita Visco Nigeria Ltd.

The tour was basically aimed at strengthening relationships among Nigerian auto parts manufacturers, and fostering collaboration with the Original Equipment Manufacturers (OEMs) in promoting growth and development in the industry.

Speaking during the tour, the director-general of NADDC, Oluwemimo Joseph Osanipin stated that the aim of the visit was to focus on component parts manufacturers, as without them, a vehicle cannot move.

He mentioned that discussions were earlier held with components parts manufacturers and auto assemblers.

“The first leg of the visit, whose aim was to assess the capacity of assembly plants is complete. The second phase focused on enhancing the capabilities of components parts manufacturers” he added.

Accompanied by technical partners, Osanipin emphasized the vast aftermarket that abound in Nigeria for auto parts.

Dave Coffey, chief executive officer of AAAM praised Mikano International Limited’s machinery quality, highlighting its potential for high product capacity. He emphasized the need for policy support to maximize production, aiming for 5-day, 3-shift operations.

Coffey identified an opportunity to localize production, reducing imports, particularly for aftermarket components. He also suggested collaborating with NADDC to adjust duty structures and target specific products, leveraging Nigeria’s massive market.
He stated that, AAAM works with African governments to develop and implement automotive policies and ecosystems.

Joseph Musa, managing director of VitaVisco Nigeria Limited, discussed the company’s struggles and aspirations. Established to supply automotive foam, the managing director lamented that, VitaVisco faces low patronage, forcing them to explore alternative uses for their equipment.

Musa emphasized the need for government support and collaboration with the National Automotive Design and Development Council (NADDC) to revitalize the automotive foam sector. He highlighted the importance of working with Original Equipment Manufacturers (OEMs) to service the industry.

Musa expressed optimism about the government’s potential initiatives to address these challenges, which would enable VitaVisco to serve the Nigerian market effectively.

He pointed out that government initiatives, such as credit schemes, are expected to encourage local vehicle production and benefit parts manufacturers.

Vitaa Parts Nigeria Limited also visited is an indigenous manufacturer of oil filters, producing various ranges for Toyota, Honda, Suzuki, Kia, and Hyundai. They have two factories: a fabrication factory for raw materials and an assembly plant for finished products.

Currently, raw materials are sourced from China due to local unavailability, but efforts are being made to source locally.

“Production capacity is 250,000 filters per day, with scalable lines. The factory has advanced testing equipment, ensuring compliance with Standard Organization of Nigeria (SON) standards. Vita Parts has a strong after-sales record, with no returns since production began in 2021” he said.

“Our filters have a capacity of 20,000 kilometers, surpassing the 3,000-5,000 kilometer range of most market filters.” he added.

Through this direct engagement, the NADDC and AAAM aim to promote Industry growth and development, fostering a more intergrated and cooperative Automotive Sector in Nigeria.

MIKE OCHONMA
Editor