Mitsubishi Motors Corp is to open an assembly plant in Nigeria next year, joining the growing list of car-makers setting up local assembly plants in the Nigerian economy.
“It’s still in negotiation – you can say in the third round out of ten,” Anand Singh, the regional head in west Africa, said. “We have identified the land. Now we are waiting for some clearances from customs, finance ministry … so that’s the status.”
Analysts say the auto market in Africa’s biggest economy has huge potential.
Only a small number of new vehicles are sold annually as the market has hitherto been dominated by secondhand imports.
However, along with the threat of imposing prohibitive import duties the government has been pushing for the development of local production under a National Automotive Industry Development Plan, with the Ministry of Industry instructing local car distributors last year to come up with plans for new assembly plants.
According to Singh, It was then up to the local companies to partner with a foreign car producer.
