Importation of Daihatsu Hijet, a micro bus and pickup truck produced by Daihatsu of Japan, is the new rave for some Nigerian businessmen.
The vehicles are imported in dismembered, knocked down bits and pieces and welded back together, to beat the high price of Indian tricycle taxis.
Also in high demand, particularly in the South West and the North West, is Suzuki Carry, a mini van and other models from Asia. These threaten to take business away from Indian tricycle manufacturers whose products are becoming unaffordable.
Daihatsu Hiject being coupled.To dodge import tariff, importers – most of whom are based in Japan but have representatives in Nigeria – dismember the midget vehicles and bring them into the country as motor parts.
They chisel off the roof, dismember the engine, the doors and the wheels, and package them in pieces. They are coupled back together on arrival by auto mechanics and welders.
The business thrives in the auto parts markets in the Ladipo and Mile 2 areas of Lagos, where businessmen deploy ingenuity to boost earnings per unit of vehicle.
The knocked down parts come into the country at an average cost of N100,000 and the welders are paid N30,000 to weld them back together.
When completed, a vehicle is sold for between N350,000 and N450,000 depending on the model. A buyer converts it from right-hand drive to left hand drive at additional cost.
The vehicles are in high demand in Kaduna and Kano, where farmers use the mini trucks to transport farm produce.
In Lagos, a metropolitan city, the mini bus version is getting more popular in preference to the tricycle taxis manufactured by Indian Bajaj.
Tricycle operators are dumping the Indian product because of the high price.
Although the prices of the tricycle and mini bus are nearly the same, both Hijet and Suzuki micro buses carry seven passengers, and turn in more revenue.
A tricycle is designed to take three passengers in the back, but the drivers illegally take in an additional passenger beside them on the front seat.
Mini bus operators, who did not want to disclose their names, said the high price of a tricycle makes a buyer run the risk of not recovering his capital before the vehicle begins to experience wear and tear.
Workers in a workshop in Mile 2 refused to comment for fear of tax implications.
In Ladipo, where the prices of the Japanese mini buses are cheaper, it was difficult to get the attention of dealers who were busy attending to customers.
A Suzuki mini bus costs N420,000 and a Daihatsu Hijet N350,000.
One mechanic said welding back the dismembered vehicles is a good business that creates good jobs.
According to him, the mechanics and other workers make about N30,000 on each unit.
He disclosed that their boss once travelled to Japan to import 19 dismembered mini buses. This means the workers made N570,000.