Nigeria 2018 | TRANSPORT | COLUMN

TBY talks to DemolaAde-Ojo, Managing Director, Elizade, on the sector.

Demola Ade-Ojo

How competitive is the market, and what is your competitive advantage?

The market is currently a little mixed; Nigeria is still a difficult place to do business and many companies will struggle with the difficult environment. The automobile market is in a depressed state, and volumes are low; this makes assembly operations tough. Nigeria cannot have viable assembly operations that are sustainable over the long term amongst all the vehicle manufacturers when the market is less than 10,000 units annually. All of the major brands built assembly plants; however, we are all operating far below the capacity of our plants because of the low volume of sales. Meanwhile, the level of resources one needs to have a full-scale assembly up and running is high. Matters are complicated further with high energy costs as we still have to run the generators. Despite the challenges, we have managed to make the JAC brand of cars the most affordable in the market and many fleet customers are already patronizing the brand. We also invested heavily in spare parts and partnered with numerous parts vendors to ensure our parts are available all over the country.