Chinese to increase presence with strategic alliances in 2016

CHINESE automobile brands are set to make appreciable presence in the Nigerian auto scene this year with their strategic alliances with major automobile dealers in Nigeria towards establishing plants in the country.
Elizade, known for its leadership in Toyota distribution in Nigeria in 2013 got distributorship right for one of China’s major automakers, JAC Motors, a brand it is currently positioning for long term market.
The company, as part of its strategy has said it is going to begin assemblage of the JAC brand, a Chinese brand at its Ikotun plant in Lagos by 2nd quarter of 2016.
Managing director for JAC arm, Mr Demola Adeojo, who disclosed the company’s plan said the Ikotun plant is a multi-brand facility with a capacity to produce 10,000 units of vehicles per year, adding that works on the plant has been completed and production commencing next year, by the second or third quarter.
Adeojo said, “A lot of Nigerians are buying used vehicle because of cost, so we made up our mind to introduce a vehicle that is considerable less in price and with confidence in the vehicle. It is not simply because they offered us a cheaper vehicle, but it meets our minimum expectation.”
Elizade, which has carried out a comprehensive operational test of the JAC car, SUV and truck models over a period of three years in Nigeria, said 2016 will see a massive feeding of the brand into the country’s automobile market.
Also, Stallion Motors is pushing more of these Chinese brands in to the market than any other company in Nigeria. Its daughter automobile manufacturing company, Zahav Automobile Company Nigeria Limited, with plants in Ikotun, Lagos, is the local assembler of Foton Tunland pickup, the Changan and BAIC models, as well as the indigenous Stallion Force pickup.
Already, the company is positioning the Foton Tunland and Stallion Force pickups to give the likes of Hilux, L200 and other competitors a run for their money in 2016. The Chinese brand also has the CS2 Foton passenger bus assembled at the Ikotun plant, which is poised to take off a huge market chunk from Toyota’s Hiace and the likes.
A good number of sedan and sports utility vehicles (SUV) models are coming off from the Zahav plants this year. They include the Changan models- CS35 an SUV, the Changan Eado, a city sedan and the BAIC models which are majorly the D-series, all being assembled in Nigeria.
Stallion has urged emerging businesses and astute commercial ventures not to wander afar in search for functional and reasonably priced pickup trucks as it unveiled the all new “drive beyond borders” Foton Tunland pickup and of course the Stallion Force, both of which are all-wheels drive.
Zahav’s head of sales and marketing, Mr. Sanjay Rupani said Foton Tunland pickup was introduced to assuage some of the challenges small businesses and commercial ventures contend with when prospecting for functional and adaptable vehicle to support their businesses.
“The next generation Foton Tunland pickup would compete in the one tone vehicle segment where renowned brands like Toyota Hilux, Nissan NP300, Ford Ranger and Mitsubishi L200 have demonstrated utter competence,” Rupani assured.
Coming in relatively very cheap, these Chinese vehicles essentially share the DNA of two renowned automobile manufacturers Daimler Automotive Company, maker of Mercedes, and Cummins Engine Company, as the Chinese automakers, Changan Motors and Beijing Automotive Industry Holding Company Ltd (BAIC) are in technical partnership with these global automobile names to enhance a globally accepted quality.
Other brands like MG rovers, Brilliance, BYD are also not relenting in their market expansion as their handlers in the country are not leaving any stone unturned in their quest to position the brands for more market penetration in 2016.