Kia Motors, a South Korea auto-giant, has signed an agreement with Dana Motors Limited to set up a vehicle assembly plant in Nigeria within the next 2 years.
The agreement, which was signed by Dana Managing Director, Mr. Jacky Hathiramani and KMC official, Mr. Homer Kim, shows the the auto-maker’s commitment to the development of the country’s auto industry, the company said in a statement.
Kia’s decision to set up plant in Nigeria came at the heel of Nigeria’s new auto policy, which raised the import duty on fully built cars from 22 per cent to 70 per cent, to discourage vehicle importation and encourage local production.
When fully implemented, the policy has the capacity to create significant good quality employment and wide range of technologically advanced manufacturing opportunities.
According to a data from the Nigerian Bureau of Statistics (NBS) and United Nations Conference on Trade and Development, a total of 400,000 vehicles (300,000 used and 100,000 new) valued at N550 billion (US$3.451 billion ) were imported in 2012 alone.
Hathiramani said the new policy sets the stage for a new era of industrial, Micro, Small and Medium Enterprises development in the country.
Dana explained that the would lead to more jobs, skills acquisition and ultimately the production of cost effective vehicles.