Car dealers step up shipments ahead of government's import duty hike in July

Car dealers step up shipments ahead of government's import duty hike in July

Posted by Sylvester on Thursday, April 3, 2014 0

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AUTOMOBILE dealers have stepped up the shipping of cars to Nigeria over recent weeks in an attempt to flood the country with vehicles before the government's new restrictions on second-hand imports comes into effect in July.

Under plans to boost the local car assembly industry, the  government will double the import duty on second hand automobile imports as from July. Local assembly plants have assured the government that they can supply enough cars to meet domestic demand if the government limits the amount of imports.

One freight forwarder who has been very busy handling imports recently, said that the number of cars his client has imported over the last six month has doubled. Last year, the government doubled the import duty on second hand cars to 70% from 35% but the new policy will not come into effect until July.

Carlos Ghosn, the chief executive of Nissan Motors, said that the company will reveal its first ever made-in-Nigeria 4x4 sports utility vehicles later this month. Adding that the cars will be assembled at the old Volkswagen assembly plant in Lagos, he noted it was possible to produce between 2m and 3m cars a year in Nigeria.

However, Tony Nwabunike, the former chairman of the Council for the Regulation of Freight Forwarding in Nigeria said freight forwarders would be challenging the new law in court. Describing the policy as anti-people, he added that they would also be taking the matter up with the National Assembly.

Mr Nwabunike explained that claims by government that the new law is intended to encourage local manufacturing does not hold water as there is no real vehicle manufacturing company in the country presently. He pointed out that what is presently available in the country are vehicle assembling plants and in some cases, importers who pretend to be manufacturers.

“I challenge anybody that will come here to tell me that he is a manufacturer of automobiles in Nigeria, as all we have here are assembling plants. Assembling semi-knock down products or completely knock down products is not total manufacturing of vehicles and cars.

"So I wonder why the  federal government will think of putting that 70% back. I agree with those who are actually agitating not to pay it and I stand by them by all means to see that it is not done."

However, Aminu Jalal, the director-general of the National Automotive Council, said: “Nigeria spent N550bn on importing cars, buses and trucks last year, which does not include tractors and military vehicles. We also spent about N500bn on spare parts and N150bn on tyres.”

Mr Ghosn added that the new policy of encouraging local manufacturing will lead to the creation of thousands of direct and indirect jobs in the country. Other vehicle manufacturers have said they too believe the new regime will foster growth in the sector and encourage them to expand their market presence.

AUTOMOBILE dealers have stepped up the shipping of cars to Nigeria over recent weeks in an attempt to flood the country with vehicles before the government's new restrictions on second-hand imports comes into effect in July.

Under plans to boost the local car assembly industry, the  government will double the import duty on second hand automobile imports as from July. Local assembly plants have assured the government that they can supply enough cars to meet domestic demand if the government limits the amount of imports.

One freight forwarder who has been very busy handling imports recently, said that the number of cars his client has imported over the last six month has doubled. Last year, the government doubled the import duty on second hand cars to 70% from 35% but the new policy will not come into effect until July.

Carlos Ghosn, the chief executive of Nissan Motors, said that the company will reveal its first ever made-in-Nigeria 4x4 sports utility vehicles later this month. Adding that the cars will be assembled at the old Volkswagen assembly plant in Lagos, he noted it was possible to produce between 2m and 3m cars a year in Nigeria.

However, Tony Nwabunike, the former chairman of the Council for the Regulation of Freight Forwarding in Nigeria said freight forwarders would be challenging the new law in court. Describing the policy as anti-people, he added that they would also be taking the matter up with the National Assembly.

Mr Nwabunike explained that claims by government that the new law is intended to encourage local manufacturing does not hold water as there is no real vehicle manufacturing company in the country presently. He pointed out that what is presently available in the country are vehicle assembling plants and in some cases, importers who pretend to be manufacturers.

“I challenge anybody that will come here to tell me that he is a manufacturer of automobiles in Nigeria, as all we have here are assembling plants. Assembling semi-knock down products or completely knock down products is not total manufacturing of vehicles and cars.

"So I wonder why the  federal government will think of putting that 70% back. I agree with those who are actually agitating not to pay it and I stand by them by all means to see that it is not done."

However, Aminu Jalal, the director-general of the National Automotive Council, said: “Nigeria spent N550bn on importing cars, buses and trucks last year, which does not include tractors and military vehicles. We also spent about N500bn on spare parts and N150bn on tyres.”

Mr Ghosn added that the new policy of encouraging local manufacturing will lead to the creation of thousands of direct and indirect jobs in the country. Other vehicle manufacturers have said they too believe the new regime will foster growth in the sector and encourage them to expand their market presence.
- See more at: http://www.nigerianwatch.com/news/4186-car-dealers-step-up-shipments-ahead-of-governments-import-duty-hike-in-july#sthash.yVNkLKIQ.WCrg9st1.dpuf

AUTOMOBILE dealers have stepped up the shipping of cars to Nigeria over recent weeks in an attempt to flood the country with vehicles before the government's new restrictions on second-hand imports comes into effect in July.

Under plans to boost the local car assembly industry, the  government will double the import duty on second hand automobile imports as from July. Local assembly plants have assured the government that they can supply enough cars to meet domestic demand if the government limits the amount of imports.

One freight forwarder who has been very busy handling imports recently, said that the number of cars his client has imported over the last six month has doubled. Last year, the government doubled the import duty on second hand cars to 70% from 35% but the new policy will not come into effect until July.

Carlos Ghosn, the chief executive of Nissan Motors, said that the company will reveal its first ever made-in-Nigeria 4x4 sports utility vehicles later this month. Adding that the cars will be assembled at the old Volkswagen assembly plant in Lagos, he noted it was possible to produce between 2m and 3m cars a year in Nigeria.

However, Tony Nwabunike, the former chairman of the Council for the Regulation of Freight Forwarding in Nigeria said freight forwarders would be challenging the new law in court. Describing the policy as anti-people, he added that they would also be taking the matter up with the National Assembly.

Mr Nwabunike explained that claims by government that the new law is intended to encourage local manufacturing does not hold water as there is no real vehicle manufacturing company in the country presently. He pointed out that what is presently available in the country are vehicle assembling plants and in some cases, importers who pretend to be manufacturers.

“I challenge anybody that will come here to tell me that he is a manufacturer of automobiles in Nigeria, as all we have here are assembling plants. Assembling semi-knock down products or completely knock down products is not total manufacturing of vehicles and cars.

"So I wonder why the  federal government will think of putting that 70% back. I agree with those who are actually agitating not to pay it and I stand by them by all means to see that it is not done."

However, Aminu Jalal, the director-general of the National Automotive Council, said: “Nigeria spent N550bn on importing cars, buses and trucks last year, which does not include tractors and military vehicles. We also spent about N500bn on spare parts and N150bn on tyres.”

Mr Ghosn added that the new policy of encouraging local manufacturing will lead to the creation of thousands of direct and indirect jobs in the country. Other vehicle manufacturers have said they too believe the new regime will foster growth in the sector and encourage them to expand their market presence.
- See more at: http://www.nigerianwatch.com/news/4186-car-dealers-step-up-shipments-ahead-of-governments-import-duty-hike-in-july#sthash.yVNkLKIQ.WCrg9st1.dpuf