More Competition for Innoson as Chinese Company Opens Showrooms in Lagos, Set to Employ Nigerians
- TIM Motors plans to import new cars from China to capture 10-20% of Nigeria's automotive market currently dominated by used vehicles
- The company aims to capitalize on Nigeria's large population by offering affordable new cars with strong warranties
- Additionally, TIM Motors plans to set up an assembly plant in Nigeria, creating jobs and boosting the local supply chain
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Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Chinese automaker TIM Motors intends to import new automobiles from China to replace at least 10% of the used cars available in Nigeria.
Source: Getty Images
This was said by Leon Zhan, the CEO of TIM Motors, during a strategic growth summit that was organized in Lagos to establish collaborations, This Day reported.
According to Zhan, the firm expects the new car market in Nigeria to reach at least 50,000 units in three years, and it has an edge because used cars dominate the country's automotive market. The company wants to take 10–20% of this market.
Zhan stated that they plan to capitalize on Nigeria's sizable population by providing Chinese new automobiles with stronger warranties and lower prices in order to accomplish this goal.
Additionally, TIM Motors would help customers buy these vehicles by partnering with Chinese financial firms such as C&D in an effort to draw in more customers.
“So that is the opportunity for us. We estimate, within the three years, the new car market will reach at least 50,000 so we are going to account for 10% to 20% of the new car market. Nigeria’s population is the largest in West, including East Africa.
So, of course, the market is largest, and the environment here actually is very robust. We have very strong confidence to develop the market here. And secondly, actually, we’re already here for more than six years. We are not fresh for the business environment in Nigeria and we are not just fresh in the passenger vehicle area.
“We are going to have Assembly plant here. We are going to employ at least 100 to 200 local employees. We are going to train a lot of local people to be skilled in car maintenance, especially in new energy car maintenance.”
He requested favorable policies from the government to support their project, saying, “I hope the government can launch some policy to motivate Chinese new cars, rather than second hand cars, because we can help the government to solve the unemployment issues here, and we also can help the local government to build up the local supply chain, step by step.”
Source: Getty Images
The company plans to open two showrooms in Lagos: one on Victoria Island and one in Ikeja.
Given the excellent quality and features of the variety of vehicles and services offered, Henry Orajiaka, CEO of MINADI, a division of Motomedia Group, praised the strategic alliance and collaboration with TIM Motors, calling it a game changer in Nigeria's automotive market.
Innoson Motors CEO confirms price of cheapest car
Legit.ng reported that the Chief Executive Officer of Innoson Vehicle Manufacturing (IVM) confirmed that its cheapest car sells for N22 million.
The company’s founder, Chief Innocent Chukwuma, made the disclosure during a recent virtual interview for television.
He explained that the entry-level vehicle comes with full air-conditioning, a rugged build, and a four-year warranty.
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Source: Legit.ng
