Dangote vehicle plant begins operation five years after it obtained licence
By Jeph Ajobaju, Chief Copy Editor
Innoson Motors which dominates local assembly of vehicles in Nnewi is now up against Dangote Peugeot Automobile Nigeria (DPAN) which has begun operation in Kaduna, in a competition expected to beat down prices for consumers.
DPAN is jointly owned by Stellantis Group, the parent company of Peugeot; Kano and Kaduna governments; and Dangote Industries owned by Aliko Dangote, Africa’s most loaded moneybag.
The vehicles are being assembled at the new Greenfield Ultima plant which has capacity to assemble 120 vehicles a day in two shifts.
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Hitech and safety
DPAN Managing Director Ibrahim Gachi said the plant will reflect hitech advancement and safety features that ensure its customers are safe.
He also promised that spare parts for all vehicles will be available, including for new Peugeot 310, Landtrek, 3008, 5008, 508, and other new brands.
DPAN is re-establishing contacts with Peugeot dealers to ensure a smooth arrival into the market and to maintains reputation for reliability, Gachi said, per reporting by Nairametrics.
DPAN timeline
DPAN began its journey in 2016 when shares in Peugeot Automobile Nigeria (PAN) were acquired by the Kaduna State government, Dangote Group, and Bank of Industry (BOI).
Dangote acquired a licence in 2017 to establish a Peugeot assembly plant in Nigeria and his DPA is now begun operation.
Innoson Motors
Innoson Vehicle Manufacturing (IVM), founded in 2007 by Innocent Chukwuma, says 70 per cent of its vehicle parts are produced in Nigeria and 30 per cent sourced from Japan, China, and Germany.
IVM models include five-seater Fox (1.5-litre engine), Umu (2-litre engine), and mini-bus Uzo. Its vehicles are used in Nigeria and also exported to Mali, Sierra Leone, and Ghana.
The company plans to produce cars that run on Condensed Natural Gas (CNG), a second foray in Nigeria after a pilot project in Benin City in 2010 by NIPCO Gas.
Chukwuma disclosed in November 2021 that the Nigerian National Petroleum Company (NNPC) has contracted IVM to produce CNG cars, and it is also ready to produce electric cars.
Charles Soludo reiterated last month his promise to use Innoson as his official car from the day he assumes office as Anambra Governor on March 17 in order to encourage the growth of local industry.