French automobile manufacturer, Groupe Renault, plans to re-enter the Nigerian car market. To ease its re-entry process, the company has signed an agreement with Coscharis Motors Plc, one of Nigeria’s automobile dealers. The development means Innoson now has more foreign competitors to worry about.
In a statement released by Renault, it was disclosed that its entry into the market will be led by the subsidiary of Coscharis Group. Renault’s presence in Nigeria will involve both local production and distribution.
As part of the deal, Coscharis will assemble two of Renault’s variants — Logan and Duster in Coscharis Assembly Facility, while Renault Kwid and Renault Oroch will be imported as Complete Built Unit (CBU) during the period of the partnership.
The Coscharis Assembly facility is located in Lagos. It was established in 2014 and commenced assembling of vehicles, rolling out its first batch in November 2015. The facility will serve as the unveiling ground for Renault’s brands on July 18, 2019. This will increase Renault’s output in 2019, with the possibility of topping the 216, 000 vehicles sold in Africa in 2018.
Renault’s decision to re-enter the Nigerian automobile market was encouraged by the growing population and spread of urbanisation which is above 50%. The company is currently leading the African continent with an 18% market share.
Fabrice Cambolive, SVP and Chairman of the Africa, Middle-East India region of Groupe Renault said the following-
“With a population of over 200 million, Nigeria is a strategic African country where Groupe Renault will extend its footprint. The Coscharis Group is a recognised player in car (vehicle) assembly and distribution. Thanks to their expertise and our products adapted to the local needs, we will be able to answer immediately to the customers’ demand in Nigeria.”
Speaking on the partnership, the President/CEO of Coscharis Group, Dr. Cosmas Maduka said;
“This partnership is to further delight the esteemed loyal customers and prospects alike, especially towards providing them a bouquet of more options and value for money. In his words, ‘’We are committed to broadening our dealership scope when such opportunity as this happens since it is a strategic opportunity to deliver capable, refined and cost-effective vehicle models to our ever loyal customers.”
Nigeria’s automobile market is currently dominated by foreign manufacturers like Toyota, Honda, Mercedes Benz and many more. Local maker, Innoson Motors, has been looking to break the grip with Nigerian made vehicles. However, with Renault looking to strengthen its footprint in Nigeria, ensuring that Nigerians let go of their fondness for foreign brands and accept Nigerian-made ones may become a mission impossible for Innoson Motors.
About Coscharis Group: The company was established in 1977, as a wholly owned Nigerian conglomerate with interests in various sectors of the economy which include Automobile, Information and communications technology, Logistics, Agriculture, Food & Beverages, Properties, Health amongst others representing globally respected iconic brands in Nigeria.
About Groupe Renault: The company has manufactured cars since 1898. Today it is an international brand, with about 3.9 million vehicles sold in 134 countries in 2018. Renault has 36 manufacturing sites, 12,700 points of sales.