TATA invest $8m in Nigeria Auto industry

Dec 04, 2015

Tata Motors Limited has invested over $8 million US dollars as part of its preparations to roll out its first batch of Nigerian assembled cars and the subsequent exportation of automobiles to other parts of Africa. This disclosure was made by the company’s Regional Manager Kshitij Verma during a meeting between the company and the management of National Automotive Council (NAC).

According to Mr Kshitij the target of the company was not just to start assembling of automobiles in Nigeria but also to establish a sub-regional Centre here where vehicles will be manufactured for exportation. He said already the company has employed over 240 Nigerians many of whom are currently undergoing training in India, adding that they have already installed a factory, which is sited on a large expanse of land measuring about 130 hectares at Ijebu Ode, a city in Nigeria.

The Director General of National Automotive Council (NAC), Aminu Jalah, has said that 32 companies have registered under the Nigeria Automotive Industry Development Programme (NAIDP) as TATA Motors plans to invest into Nigeria motor business. The DG made this disclosure in Nigeria’s capital city, Abuja when Mr Nunu Diwan of Iron Products Industries Limited (IPI) led two top official of TATA Motor Limited, Mr. Kshitij Verma, Regional Manager North and West Africa and Mr. Subhajit Som, Assistant Area Manager Nigeria to his office.

He stated that NAC were delighted to receive the TATA group, in Nigeria while stretching their hands of fellowship in the realization of the objectives of Nigeria’s automotive policy. According to him Tata is global original equipment manufacturer company known in Nigeria for its heavy duty vehicles and its popular Range Rover.

Jalah explained that like in the previous attempts in Automotive Development in Nigeria which was undermined by badly managed Trade Liberalization Policy, the present attempt were characterized by the involvement of local entrepreneurs with experience in the motor industries.

“TATA Motor is partnering with IPI, a known body building Automotive Company in Nigeria others include SCOA, Coscharis Motors, Stallion Motors, Chanrai Nigeria, Rt Brisco, Dana Group, Transit Support Company  (a subsidiary of ABC Motors) NTM Kano, Leyland Ibadan, Innoson Motors, PAN to mention a few,’ he said.

The DG informed that the council has over 32 companies registered and the Nigeria Automotive Industry Development Program (NAIDP) while growing global brands like Honda, Nissan FAW, Hyndai, Kai, Peugeot, Sino trucks etc were now being assembled locally. He reassured Nigerians that value were being added locally to the brands assembled in Nigeria and that high quality employment were already happening though assembling operations at the moment are at semi knocked down level.

Jalah further disclosed that Nigerians were involved in the final assembling lines which NAC has carefully evaluated and approved with a joint team of Nigeria Customs Service and Federal Ministry of Finance for purpose of transparency and quality assurance. According to him the OEMs themselves have in house mechanism to ensure that product rolled out meet their individual quality standard as warrantees must be extended adding that they will move to CKD assembly operations. 

The Tata Group is an Indian multinational conglomerate headquartered in Mumbai, India. It was founded in 1868 and gained international recognition after purchasing several global companies. It is one of India’s largest conglomerates. In 2014-15, the revenue of Tata companies, taken together, was $108.78 billion. These companies collectively employ 611,794 people. Each Tata company or enterprise operates independently under the guidance and supervision of its own board of directors and shareholders. There are 30 publicly-listed Tata enterprises with a combined market capitalization of about $113.09 billion (as on 16 September 2015). Tata companies with significant scale include Tata Steel, Tata Motors, Tata Consultancy Services, Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels Company. Trusts created by Tata Group control 65.8% of company shares.

Source:  Celebrating Progress Africa