The Nigerian Automotive Council (NAC) has disclosed that the 35 percent levy on imported used cars will take effect from April 30th this year. This follows an initial deferment to December 31st 2014 necessitated by the need for local assembly plants to meet demand nationwide.

The policy, which has five components, includes most importantly the promotion of market development and protection of local manufacturers. In order to support this, tariffs will be increased on fully assembled vehicles until the local production of cars and content procedures become much more competitive.

A new automotive era

Various assembly plants are expected to start operations next year. Some of which include Dana motors, which will assemble Kia cars, PAN Peugeot cars, among others. Coscharis Motors is also set to establish an assembly plant in Lagos for the production of over 14,000 vehicles every year. All of which prove that the industry is capable of producing vehicles come 2015.

Others such as Nissan, Hyundai and Nigeria’s first indigenous car producer, Innoson, have already kicked off production locally. Nissan and Innoson have unveiled made in Nigeria vehicles, with Innoson displaying its first locally built sedans.

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