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LequteMan
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Kia Motors Nigeria CEO Jacky Hathiramani has sent an economic blueprint in the automobile industry to President Muhammadu Buhari, Thisday reports.
In his proposal, he posited on the germane significance of the industry and how pertinent it is for the new administration under the stewardship of President Buhari to bring to bear the progressive change it had promised to the automobile industry.
In order to have a better and improved auto industry, FG according to Kia should
Finally End Importation of Tokunbo Cars
The government needs to be steadfast in its pursuit of economy growth by tackling importation of used vehicles and also strengthening the border to drastically reduce the spate of smuggling into the country.
When the administration addresses the influx of the used vehicles, there will be a corresponding demand for the new locally made cars which will create a mass production and in turn drastically reduce the prices owing to a resultant effect on the cost of production.
Restructure Nigeria's Auto Policy
He opined that, the thrust of the Nigeria auto policy needs to be restructured to further create an enabling environment for the local assembling companies. Taking a cue from developed countries where local manufacturers are given government aids and tax exemptions for Semi Knocked Down (SKD) parts and components from import tariffs, the current administration can further reduce or exempt local companies from import tariff which will go a long way in reducing the cost of producing the vehicle thereby reducing the prices and giving them a competitive edge.
Provide Adequate Power Supply
While lamenting on the current state of the nation’s power supply, he enjoined the government to revamp the power sector for adequate provision of energy to support local plants.
Suspend Foreign Automakers Without Local Assembly Plants
He stated further that the foreign automakers who are not partnering with local companies to establish assembly plant needs to be barred from operating in the country to help strengthen the local assembling plants.
Make Government Officials Use Made in Nigeria Cars
Most importantly, the government needs to encourage the local assembly plant owners by enlisting them in its fleet requirements and solely use vehicles that are assembled in Nigeria.
Kia Motors CEO Jacky Hathiramani
In his proposal, he posited on the germane significance of the industry and how pertinent it is for the new administration under the stewardship of President Buhari to bring to bear the progressive change it had promised to the automobile industry.
In order to have a better and improved auto industry, FG according to Kia should
Finally End Importation of Tokunbo Cars
The government needs to be steadfast in its pursuit of economy growth by tackling importation of used vehicles and also strengthening the border to drastically reduce the spate of smuggling into the country.
When the administration addresses the influx of the used vehicles, there will be a corresponding demand for the new locally made cars which will create a mass production and in turn drastically reduce the prices owing to a resultant effect on the cost of production.
Restructure Nigeria's Auto Policy
He opined that, the thrust of the Nigeria auto policy needs to be restructured to further create an enabling environment for the local assembling companies. Taking a cue from developed countries where local manufacturers are given government aids and tax exemptions for Semi Knocked Down (SKD) parts and components from import tariffs, the current administration can further reduce or exempt local companies from import tariff which will go a long way in reducing the cost of producing the vehicle thereby reducing the prices and giving them a competitive edge.
Provide Adequate Power Supply
While lamenting on the current state of the nation’s power supply, he enjoined the government to revamp the power sector for adequate provision of energy to support local plants.
Suspend Foreign Automakers Without Local Assembly Plants
He stated further that the foreign automakers who are not partnering with local companies to establish assembly plant needs to be barred from operating in the country to help strengthen the local assembling plants.
Make Government Officials Use Made in Nigeria Cars
Most importantly, the government needs to encourage the local assembly plant owners by enlisting them in its fleet requirements and solely use vehicles that are assembled in Nigeria.
Kia Motors CEO Jacky Hathiramani
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