The lead distributor of Toyota and JAC Motors in Nigeria, Elizade Motors Limited, plans to begin the assembling the Japanese and Chinese brands respectively at its Ikotun Plant in Lagos by the second quarter of next year.
Elizade, known for its leadership in Toyota distribution in Nigeria, in 2013 also added the distributorship right for one of China’s major automakers, JAC Motors, a brand it is currently positioning for the long term market.
Mr Demola Adeojo, Managing Director of the JAC arm, who disclosed the company’s plan at a media briefing recently, said that having been a distributor of Toyota for over 40 years, Elizade is prepared to position the JAC brand also in its rightful position in the Nigerian market.
A multi-brand plant
He said that the Ikotun plant is a multi-brand facility with capacity to produce 10,000 units of vehicles per year, adding that works on the plant have been completed, with production commencing by the second or third quarter of next year.
Speaking on the JAC brand, Adeojo said, “As the Nigerian market expanded, we saw that the landscape changed with a lot Nigerians buying used vehicle because of cost. So we made up our mind to introduce a vehicle with considerable less price and which we have confidence in. It is not simply because they offered us a cheaper vehicle, but it meets our minimum expecations. We visited China to study auto manufacturing and the tenets guiding their business philosophy.
“Two things happened that made me see JAC a potential “Toyota” of 40 years ago. One, they decided that they will not manufacture other vehicles than their original brand. Most Chinese auto companies have manufacturing partnership with global brands – Toyota, BMW, VW – which will produce the vehicles on their behalf. Two, they have their own research and design centre from day one – the only Chinese company that has a research centre in Japan and Europe. They put into their own DNA how to make a good car. So I belive that their business culture and philosophy is in line with what we expect and a vehicle we want to sell.”
Adeojo said that the implementation of the Auto Policy with 70 per cent tariff affected Elizade’s plan to introduce the JAC cars at that time.
“We have been watching the implementation of the Auto policy. As it is implemented today, it does not allow good transition. That can have an effect on the whole industry,” he said.
The JAC boss said that having been satisfied with the brand, the company began brand acceptability strategies by selecting various organisations to test the vehicles for three months to gauge their performance.
“One car was tested by a number of companies moving from a current kilometre to the next thousands of kilometres. At Elizade, profit is not the focus. For any product for Nigeria, one must think long term. Our position with the JAC is long term positioning that Nigerians after many years can still say that the product is good. This is not about money, but about a product that would have a long term value, fit for Nigerians’ use and affordable so that Nigerians can afford new vehicles, enjoy quality after-sale service and comfort. This shows our love for Nigerian customers,” he said.
JAC Motors is China’s 9th manufacturer, building 476,696 vehicles in 2015, after moving up from its 14th position in 2014 in which it produced 464,700. The company has maintained its number one position as exporter of commercial vehicles in China for 40 consecutive years and ranks 4th among the country’s 38 manufacturers with 199,141 units of mainly light trucks in 2015. It has presence in 28 African markets with full brands, running 19 manufacturing plants globally.
Mr Lyrida Lu, regional Manager for light commercial vehicle division, JAC International, said that the company, being among the top five truck manufacturers in the country and with presence in 130 countries in the global market, has maintained a strong position in global market, especially in light duty trucks market.
“Elizade is a very professional auto distributor with very good after-sales service and we are happy to have an agreement for large duty trucks and passenger cars. The market has proved that the JAC products are of very good quality adaptable to the Nigerian market and with low fuel consumption. We are here almost for the whole year. We are supporting Elizade to do business with JAC,” Lu said.
-Leadership
