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China wants ninety percent of Nigeria auto market

Felix Lee, General Manager, GAC Motors in Nigeria tells Simon Ugwu the company eyes ₦2.3b sales in the remaining half year.

The Nigeria-China Sync

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Lee

China is the biggest car manufacturer in the world, with high technology, quality and competitive price. Nigeria is a big market in Africa and Nigerians like something new, so we bring new high end brand Chinese cars to Nigeria, the largest economy in Africa, where the market is growing fast. Nigeria and China have many things in common, like huge population. Years ago, China was struggling like Nigeria, so this will be our contribution to Nigeria to grow its economy like China’s.

GAC Motors is launching two models to start, Trumpchi GS5 SUV and our GA 3, later we will launch more, but we need to watch the market first; test market reaction from Nigerians and position in the automobile market. Market for new vehicles in Nigeria is not big enough, compared to other African countries, but we are happy to see that the market has prospect in future. By next year we should be among the top five automobile companies in Nigeria.  Lagos is our flagship auto shop, we plan to build sixteen auto shops across the major cities in Nigeria such as Ibadan, Kano, Kaduna, Port Harcourt, Enugu, Owerri, Aba, including Abuja in the next three years.

About GAC Motors

GAC Motors is in the top five league in China, we have more than thirty years manufacturing experience. We collaborate with other companies such as Toyota, Hyundai, Fiat, etc., in early 2012 the company was listed on the Shanghai Stock exchange.  We have the technology and our mother company Choice International Group, CIG, has more than fifty years experience, our mission is to work with excellence and come out best. We plan to launch more brands so that Nigerians will have more options to choose. We have relationships with Nigerian banks and insurance companies and we are willing to share our technology with those willing to work with us.SPARE PARTS_GAC vehicles

Game plan

We plan to build assembly plant in Nigeria and also grow the automobile industry. We plan to export from Nigeria to other West African Countries.

Market penetration strategy

GAC Motors is a new brand, we have the technology, our market strategy is very important, we also have the confidence about the technology, the quality and price. We want Nigerians to know the product better. Our prices are better and we have the top quality. As we launch our brand, we provide full options of service and after sales relationship. We provide services for different brand of cars apart from our own brands. The fuel consumption of our cars is very low and very high safety on the roads. The performance is very high.

Prospects

Trumpchi GS5 SUV brands is lucrative as the capacity is good for Nigerian roads so also our GA 3. We hope to make turnover of about =N=2.3 billion in the remaining half year.  We ensure that we have better competitive price and our brands are bigger than our competitors. We target selling one thousand cars for the second half of the year 2015. We launched Trumpchi GS5 SUV and GA3 first; we shall push our buses and trucks extensively later

Value proposition

We want to bring a new lifestyle for Nigerians. We emphasize safety for our vehicles as we have observed that some Nigerians speed on the roads. Our GS5 SUV has sunroof, apart from using it for fresh air, it is a safety means in time of accident, if the door is damaged in an accident, you use the sun roof for escape.

Our plan depends on the government policy in the protection of our investment and personnel in Nigeria. We need government’s protection and guarantee of returns on our investment. If we are encouraged to build one car in Nigeria and import two cars with lower tariff, we shall be encouraged to build the industry. We shall appreciate relief on import duties so that we can bring in cars with competitive prices. Though we are in partnership with Fiat, Honda, Isuzu, Mitsubishi, Peugeot, Toyota, Everus and Hino brands, under the arrangements, we choose to build Chinese brands in Nigeria because we have our industry and we are high in technology.

We have been in Nigeria since 2014 and a wholly Chinese company. We have plan to control eight percent of the market share in Nigeria now and we target 90 percent in the long term. We have 45 workers. Choice International Group is the owner of CIG motors. We imported 350 cars and by the end of July 2015, we would have sold two hundred cars.

Published in the Business Eye’s print version, Jul 2015 edition.

 

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