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NAMA refutes critics’ claims on vehicle price increase as baseless

By BusinessNews Staff on July 6, 2014

The Nigerian Automotive Manufacturers Association (NAMA) has described as baseless stories currently making the rounds that the implementation of the revised automotive policy, which began on Tuesday, could result in disproportionate price increase of vehicles.
The association said: “In working with the federal government, we are aware of the enormous responsibility we owe Nigerians in not only making vehicles available but also ensuring that the standard and prices compete favorably with what is obtained in any motor vehicle manufacturing economy the world-over.”

NAMA said it is undaunted by infrastructural challenges applauded the initiative as defining moment in history and a tremendous victory for the present administration.
The association assured that the development of the automobile industry is a vital impetus that is capable of creating massive employment for Nigerians and teeming school leavers.
They added that the current fiscal policy has attracted investment to the country, Mr. Arthur Madueke, Executive Director, Nigerian Automotive Manufacturers Association (NAMA) said: “We salute the courage, resilience and patriotism of the over 19 other assembly plants who identified with the aspirations of the government and people of Nigeria to be one of the industrialized economies of the world.”

He said the internal and external training facilities provided by VON Automobile Limited as well as PAN Nigeria and other local plants would subsequently offer basic platforms for technology development and transfer especially among young engineers.
The policy according to him is designed to further enhance downward review of vehicle prices and “no member of the Nigerian Automotive Manufacturing Association has increased the price of its products rather, it is the speculative dealers who are decided to increase the prices of their old stock unjustifiably and efforts are on to check this ugly trend.” NAMA executive director cautioned.
VON Automobile Limited – Managing Director, Mr. Tokunbo Aromolaran had similarly debunked claims of price surge saying people naturally resist change to preserve the status quo instead of carefully studying the value chain arising from local vehicle assembly operations and determine the immense benefits of new policy.
Citing available new vehicular statistics of about 37, 500 imports to the country by May 2014, representing 72% of annual imports, Mr. Aromolaran said price increase at this time would be spontaneous, uncalled-for and inexcusable.
He said, “the easiest campaign launched against the policy was the propaganda that it will lead to price escalation, unknown to critics that tariff was only used as a tool to redirect incentives to the value-adding segment that is germane to the success of Nigeria industrial revolution agenda.”

Also dismissing critics’ allegations of infrastructural inadequacy, Mr. Aromolaran said: “No nation has had to wait until its infrastructures are in place to venture into production, remarking that resources are only channelled to areas where the country has comparative advantage, which when diligently developed could make it competitive.”
He recalled that the federal government was pre-emptive of the fall-out of the policy initiative and had introduced measures to cushion the effect of an adjustment in tariff of imported and locally produced vehicles with recourse to price.
“At first, government delayed the implementation of the policy by six months to allow importers adjust their plans and afterwards extended the implementation of tariff on used vehicles to December 2014 to allow more inventories berth and consequently drive down prices of vehicles.”

Similarly, some members of NAMA such as Stallion Nissan Motors Nigeria Limited had announced the commencement of ‘B’ segment compact sedan – Nissan Almera in May 2014 while Hyundai Motors Nigeria also proclaimed the beginning of production of A, B, C – segment Hyundai i10, Accent and Elantra and compact SUV iX35, all in a bid to ensure product availability and price stabilization.
And only on Tuesday July 03 2014, PAN Nigeria launched a new production line for Peugeot 301, while Innoson Vehicle Manufacturing has continued to expand local production since the announcement of the new auto policy.

[This Day]

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