Barely two years into its decision to set up an automobile hub in the country, Kewalram Chanrai group has set up an automobile manufacturing plant in Lagos, even as it stated that the firm can roll out 198,000 units of trucks, cars, tricycle and motorbikes annually.
Apparently determined to hit the ground running, the firm has equally unveiled its first Foton trucks which is assembled in Nigeria.
Addressing journalists to mark the inauguration of automobile assembly, Deputy Managing Director, Kewalram Chanrai Group, Mr. Victor Eburajelo said that hub had been built with installed capacity of 198,000 units of vehicles and motorbike per annum.
The director also noted that the company would be starting with the Foton truck assembly, which according to him, will run in two phases.
He said the company will also be manufacturing another brand called Izuzu mini buses, adding that Chevrolet cars and Sport Utility Vehicles (SUV) are also in the roll call of brands to be manufactured by the firm.
He also reiterated that the decision of the company to go into vehicle assembly is in compliance with the federal government directive on the auto policy.
The Kewalram boss further added that the policy which was announced in 2013 favours automobile companies assembling or producing vehicles locally from zero to 10% import tariff on its component, but added that importers of fully built vehicles without assembly plants in Nigeria are to pay 70% duty on the vehicles.
Eburajelo further gave the breakdown of its projected production as: 12000 units of trucks,30,000 units of cars and mini buses; 36,units of three wheelers also known as tricycles and 120,000 of two wheelers known as motorcycle.
“We are also going to produce Izuzu mini buses and in due course, we shall assemble Chevrolet cars and SUVs”
“We are launching an auto assembly hub and we are going to start with Foton trucks which we have already completed one that will be delivered ”
“We have also signed agreements to assemble three wheelers, and of course two wheelers”
“The bike is a Hero brand, while the three wheeler is a Piaggio brand, but if it becomes necessary, we can go on three shifts and we will wait for the demand to grow in order to increase our capacity”
“And if it grows, we can have four gangs of three shifts”, he added.
Discussion about this post