Kasie Abone recently toured one of Nigeria’s indigenous vehicle manufacturing companies, Innoson Vehicle Manufacturing, based in Nnewi, Anambra State. She writes about impending revolution in the auto industry
Nnewi, a commercial city in eastern Nigeria is famous for many things. But its status as a business hub in the east of the Niger is arguably what makes it distinct. Yes, Nnewi is the industrial life blood of Anambra State, where vehicle spare parts trading is a big business.
Besides, Nnewi is home to major industrial establishments in eastern Nigeria that include Chikason, Tummy Tummy, Ibeto, Coscharis among many others.
It is this industrial town that is home to the first indigenous auto plant in Nigeria, Innoson Vehicles Manufacturing Limited (IVM).
The IVM assembly plant birthed about seven years ago is nestled in the scenic environment of Umudim, Nnewi, Anambra State.
The plant specialises in the manufacturing of environmental friendly SUVs, buses and trucks.
It is from this plant that Chairman, Innoson Group, Chief Innocent Chukwuma, aims to help Nigeria achieved its vision for made in Nigeria vehicles in response to the country’s local auto needs and employment generation.
Inside this plant, a technological revolution which is giving hope to millions of Nigerians about the country’s auto industry is taking place.
A recent tour of the factory was a revelation. As usual, it was a busy day for the workers who busied themselves with the work of assembling different auto parts to make a vehicle. Of course, a mix of interesting and complex process, the dexterity, passion and hard work exhibited by these workers could be sum up as one - extraordinary.
But for three Chinese, all the workers are locals who are skillful in the art of car making.
When THISDAY visited, the plant bustled with hyper-efficient workers who were seen performing different functions at different stages of vehicle manufacturing.
To wit, some sections of the premises were littered with iron rods and sheets, a major raw material for framing the body parts. Also framed roofs cut into corresponding sizes and shapes were on the ground waiting to be moved into the welding section.
At the welding section, the steel parts are welded into the final form of the vehicle bodies. Here young men were seen performing different welding functions while two Chinese milled around to supervise the work. At the other end, another expatriate was seen inspecting a completed body work of a 14-seater bus.
The painting section performed processes which included surface treatment by cleansing and phosphating through immersion, as well as electrochemical coating through immersion to applying intermediary and final painting to waxing.
And at the assembly section, which is the final stage in the manufacturing process, THISDAY observed the process through which the frames were moved to cover various parts of the engine as well as the mechanical and electrical parts to be assembled inside the frame.
With those ones completed, internal parts such as seats, the steering wheel and other internal components were put into the right places.
After the assembly, the vehicles were subjected to various quality tests including the brakes, speed, stability and rain. The IVM General Manager, Mr. Nnamdi Onusogu explained that with reports generated from the drivers on any malfunction noticed, the fixing is done after which final inspection is conducted and the vehicles are made ready for the market.
THISDAY noticed that a huge warehouse stocked with spare parts, including door frames, engines, tyres, glass, among many other component parts was located prominently by one corner of the plant. It was from there that auto parts were moved to the place where they were needed.
Technological transfer at the plant, THISDAY was informed, has slashed the expatriate staff strength from 70 to 30. "Whatever our people can do, we don't employ foreigners to do them. Very soon the expatriates will leave and our people will handle the work themselves." Innoson said.
Clearly, the history of IVM is a study in dexterity, courage and unquenchable love for fatherland. Despite a seemingly hopeless situation, Chief Chukwuma in 2007 took a plunge into a rather inconceivable venture when he set up the IVM. It was at a time nobody gave it a thought that such a project could be possible. Given Nigeria's penchant for everything foreign and the collapse of other vehicles plants before it, the fear that the local auto brand would end up another wasted venture could be said at the time to be founded. But with uncommon courage located in the success stories of his previous business ventures especially in motorcycle business, Chukwuma delved into the humongous venture with single-minded, rock-solid determination to succeed. It is on record that Innoson revolutionised the motorcycle business and ended the scourge of second-hand bikes with provision of local alternative and affordable motorcycles.
Encouraged by the success story of his motorcycle business, Chukwuma said he was motivated to establish an auto company that would give Nigerians opportunity to own new vehicles at affordable prices. Chukwuma said the reason for high patronage of used vehicles in Nigeria is due to prohibitive prices of imported new vehicles. "With IVM, we want to replicate what we did in the motorcycle sector. I believe that with local manufacturing of vehicles, the prices of the new ones will be more affordable in Nigeria than the used ones,” he explained.
In spite of the initial hiccups, IVM is moving in leaps and bounds with a vision to rule the African auto market. “We are building a globally competitive brand locally, with a vision to lead Africa’s auto market in the next five years. In terms of quality and design, IVM brand of vehicles compares favourably with any other in the same class globally. We train our staff where they (other auto plants) train; we buy our spares where they buy. We have the expertise, the passion and all it takes to take over African market leadership. We will surely do it," he enthused.
And when the implementation of the newly introduced policy on the auto industry fully takes off, Chukwuma is optimistic that his plant will blossom to full capacity. And when that happens, the supply of IVM range would jump from the current 600 vehicles per month to a whopping 5000, a figure he argued if other plants could meet such number then, the local manufacturers would be able to satisfy local auto demand.
"I can assure you that in the near future, Nigeria will control auto business not only in Nigeria but the whole of Africa. I am confident that we will surpass expectations, because whatever obtains overseas, we can replicate it here. So, local manufacture will be immensely beneficial to the generality of our people especially the common man because we will make the prices of these vehicles affordable and highly competitive, the quality will be such that can compare with global standards."
At present, IVM sources about 60 per cent of its raw materials locally. Most of these inputs are manufactured by subsidiaries of Innoson Group. "Gradually we will improve on our local raw materials supply. It can't be automatic. Every year the quantity of imported components continues to drop. Anyone we can source locally, as far as it passes set standard, we don't hesitate to use."
In driving the IVM brand, Chukwuma has demonstrated an uncommon zeal, commitment and passion, which is the hallmark of his success story.
Chukwuma sees value in investing in the plant, viewing it as a kind of launch pad for the take off of local auto manufacturing technologies. He insisted that for IVM to continue to progress, the auto brand would continue to advance not just in the technology of its brands but also the technology of manufacturing.
No doubt, IVM has revolutionised the automotive industry in Nigeria, as well as bringing Nnewi nay Anambra on the global map.
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