Wednesday, February 1, 2023
198 Nigeria News
No Result
View All Result
  • HOME
  • VIDEO NEWS
  • BUSINESS NEWS
  • FEATURED NEWS
    • NIGERIA USA NEWS
    • NIGERIA EU NEWS
    • NIGERIA CHINA NEWS
    • NIGERIA UK NEWS
    • NIGERIA FRANCE NEWS
    • NIGERIA GULF NATIONS NEWS
    • NIGERIA INDIA NEWS
    • NIGERIA RUSSIA NEWS
    • NIGERIA ITALY NEWS
    • NIGERIA TURKEY NEWS
    • NIGERIA EGYPT NEWS
    • NIGERIA BRAZIL NEWS
    • NIGERIA THAILAND NEWS
    • NIGERIA PHILIPPINE NEWS
  • POLITICAL NEWS
  • MORE NEWS
    • NIGERIA TECHNOLOGY NEWS
    • NIGERIA MOVIE INDUSTRY
    • NIGERIA CRYPTO NEWS
    • NIGERIA AGRICULTURE NEWS
    • OVERSEAS JOBS NEWS
    • NIGERIA CONSTRUCTION NEWS
    • OVERSEAS SPONSORSHIP
    • 198TILG MEDIA TRAINING
    • NIGERIA IMMIGRATION NEWS
    • NIGERIA EDUCATION NEWS
    • NIGERIA VENTURE CAPITAL NEWS
    • NIGERIA JOINT VENTURE NEWS
    • NIGERIA UNIVERSITIES
    • NIGERIA MANUFACTURERS
    • NIGERIA BUSINESS HELP
    • NIGERIA PARTNERSHIP
  • ASK IKE LEWUMA
  • REGISTER NGO
  • CONTACT
  • HOME
  • VIDEO NEWS
  • BUSINESS NEWS
  • FEATURED NEWS
    • NIGERIA USA NEWS
    • NIGERIA EU NEWS
    • NIGERIA CHINA NEWS
    • NIGERIA UK NEWS
    • NIGERIA FRANCE NEWS
    • NIGERIA GULF NATIONS NEWS
    • NIGERIA INDIA NEWS
    • NIGERIA RUSSIA NEWS
    • NIGERIA ITALY NEWS
    • NIGERIA TURKEY NEWS
    • NIGERIA EGYPT NEWS
    • NIGERIA BRAZIL NEWS
    • NIGERIA THAILAND NEWS
    • NIGERIA PHILIPPINE NEWS
  • POLITICAL NEWS
  • MORE NEWS
    • NIGERIA TECHNOLOGY NEWS
    • NIGERIA MOVIE INDUSTRY
    • NIGERIA CRYPTO NEWS
    • NIGERIA AGRICULTURE NEWS
    • OVERSEAS JOBS NEWS
    • NIGERIA CONSTRUCTION NEWS
    • OVERSEAS SPONSORSHIP
    • 198TILG MEDIA TRAINING
    • NIGERIA IMMIGRATION NEWS
    • NIGERIA EDUCATION NEWS
    • NIGERIA VENTURE CAPITAL NEWS
    • NIGERIA JOINT VENTURE NEWS
    • NIGERIA UNIVERSITIES
    • NIGERIA MANUFACTURERS
    • NIGERIA BUSINESS HELP
    • NIGERIA PARTNERSHIP
  • ASK IKE LEWUMA
  • REGISTER NGO
  • CONTACT
No Result
View All Result
198 Nigeria News
No Result
View All Result
Home NIGERIA INDIA NEWS

Africa emerging as car making hub

198 Nigeria News by 198 Nigeria News
October 15, 2021
in NIGERIA INDIA NEWS
0
491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

[ad_1]

bredcrumb

International

-DW News

|

Updated: Friday, October 15, 2021, 16:08 [IST]

Google Oneindia News

Rabat, Oct 15: Morocco is an emerging automotive manufacturing hub, while South Africa has a history of car making. But multinational vehicle manufacturers are also setting up production plants in Angola, Ethiopia, Ghana, Kenya, Namibia, Nigeria and Rwanda and locally owned African producers are starting out on this road less traveled.

Africa emerging as car making hub

Africa has more than a billion people, 17% of the world’s population, but accounts for only 1% of cars sold worldwide, compared with China’s 30%, Europe’s 22% and North America’s 17%, according to the Paris-based Organisation Internationale des Constructeurs d’Automobiles (OICA). Africa has on average 44 vehicles per 1,000 people, compared with the global average of 180 and 800 in the US, according to McKinsey.

Morocco and South Africa lead the way

In 2018, Morocco overtook South Africa as the biggest African exporter of passenger cars with exports in 2019 at $10 billion (€8.5bn). The two countries mainly make cars for foreign markets, but also have relatively large domestic markets. VW, Mercedes-Benz owner Daimler and BMW are among the biggest car companies in Africa, making up over 90% of all passenger cars produced and a third of the cars sold in South Africa in 2019. Meanwhile, about 80% of the 400,000 cars produced in Morocco are sold to Europe, with France, Spain, Germany and Italy the main destinations.

The Moroccan car industry directly employs 220,000 people, most of whom work for 250 suppliers. Annually, Moroccans buy 160,000 new cars, which is a small number for a population of 36 million.

In September, Stellantis — created in January 2021 after a merger of Fiat Chrysler and PSA — announced that its supermini electric car Opel Rocks-e would be produced at the PSA plant in Kenitra, with a capacity to make 200,000 vehicles a year. Stellantis, the world”s fourth-largest car manufacturer, plans to increase spending on parts made in Morocco from €600 million to €3 billion by 2025.

BYD, a Chinese electric vehicle manufacturer, signed a memorandum of understanding with the Moroccan government to open a plant also in Kenitra, while Hyundai, the Korean carmaker, after leaving Algeria, is reportedly considering setting up in Morocco.

Meanwhile, STMicroelectronics, a US company based in Casablanca, has just launched manufacturing of the main transmitter for Tesla vehicles in Morocco.

Proximity matters

Perhaps the main reasons Morocco has been a success story are its location close to European markets and the free trade agreements it signed with Europe, the US, Turkey, the United Arab Emirates and elsewhere.

“The Renault and Peugeot plants in and around Tangier are there because they got superfavorable deals — on land, infrastructure, customs facilitation to invest in a country that is a very short ferry ride from Europe,” Joe Studwell, from the Overseas Development Institute in Cambridge, told DW.

“This logic does not work for sub-Saharan Africa where it is all about the local markets,” he added.

Locally based suppliers and staff and supplies are also important. Renault, for example, sources parts from seats to axles from local suppliers. Local content accounts for 60% of the final product. Meanwhile, labor costs are about a quarter of those in Spain and lower than in eastern Europe.

Africa emerging as car making hub

Other African nations on the move

Before Opel’s Moroccan shift, Egypt had been widely expected to become the region”s next leading automotive manufacturing center.

Chinese automaker Dongfeng signed a framework agreement in January 2021 with the bankrupt Egyptian state-owned El Nasr Automotive Manufacturing Company to jointly produce electric vehicles in Egypt.

There are also very small production plants in Kenya and Rwanda. In Rwanda, Volkswagen is testing e-mobility.

European production facilities are planned in Ethiopia, Nigeria and Ghana. Ghana wants to limit the import of used and obsolete cars. It is also offering car producers 10 years of tax exemption.

Volkswagen opened its first assembly plant in Ghana in August 2020. Up to 5,000 vehicles are to be assembled there per year, including the Tiguan, the Passat and the Polo. Nissan is also preparing to launch an assembly plant.

In Nigeria, Kenya, Rwanda and Ghana, global carmakers are investing in assembly plants instead of full-fledged production units. In Kenya a local company, AVA, assembles medium and heavy commercial vehicles for Mitsubishi and Fuso and Scania, Toyota, Hino and Tata.

Africa emerging as car making hub

Africa”s homegrown car makers

There are also efforts to produce “homegrown” cars with several startups.

In Kenya, Mobious Motors, started in 2009 by British entrepreneur Joel Jackson, plans to launch an all-terrain vehicle. In South Africa, a joint venture between Mureza and Iran’s SAIPA Group is another. Kiira Motors also intends to launch a hybrid car in Uganda, while the Innoson is another indigenous brand in Nigeria.

“We see new smaller car makers in Africa do very specific smaller jobs and this combined with new technologies such as 3D printing has potential for Africa,” Georg Leutert, director of the Automotive and Aerospace Industries at IndustriALL Global Union, told DW. “This is not dependent on economies of scale and could thus move away from mass production. But there is a problem of brand recognition and service infrastructure, plus the need for big upfront investment,” he added.

“In terms of African firms building African cars, Morocco has so far taken the low-cost route, with the danger of following Mexico into a dead end. That means there is still too little planning to invest in long-term know-how and national capabilities,” Leutert said.

Birkin Cars made by a South African-based automobile company, is the oldest in the industry, having started in 1982. The Innoson Vehicle Manufacturing Company was founded by Nigerian born entrepreneur Innocent Chukwuma and is the first technology company to manufacture cars in Nigeria. The Kantaka Automobile Company was established in Ghana, while Kiira Motors Corporation, a Ugandan automotive company, is interested in creating a hybrid electronic vehicle.

Provided by Deutsche Welle

Founded in 2006, the Tunisian company Wallyscar makes 350 convertible SUVs a year. Olfa Seddik, the Chargee d”Affaire at Wallyscar, told DW the company was planning to unveil five new models within the next five years, and roll out 4,000 cars a year by 2025. “Tunisia suffers from logistical infrastructure and legislation. It will take time before the country manages to resolve these issues,” Seddik said.

“Because of rising wages and automation, it makes increasingly sense to shift some manufacturing back to Europe. This will make it difficult for African countries to really make a breakthrough in car production. Except Morocco on the fringes of the EU and maybe Egypt in the future will benefit from this trend,” Robert Kappel of Leipzig University told DW.

“The markets are too small for both foreign and domestic carmakers and also suppliers, because they would need large quantities to make production worthwhile,” said Kappel.

“[But] in eight to 10 years, a lot can therefore change on the African continent. The market for car production will become bigger, especially as cities with a higher proportion of middle classes grow,” Kappel argued.

“Ghana wants to establish itself as a new hotspot in West Africa. It has identified vehicle assembly and manufacturing of automotive components as a strategic anchor industry. Through this, the government wants to drive industrialization and create new jobs,” he added.

Watch out eastern Europe

“Some production, for example wiring and manual stuff, is moving away from eastern Europe,” Leutert said. “But for Czechia, Slovakia and Poland there is no real problem, as they are highly skilled, well established — the costs are still low and they are close to the German and other European manufacturers,” Leutert reasoned.

“But Romania, Bulgaria and the Balkans could face trouble, given they tend to be less stable in terms of workforce than in north Africa. There is a high turnover of workers and infrastructure is poor,” Leutert conccluded.

Source: DW

For Breaking News and Instant Updates

Allow Notifications

You have already subscribed

[ad_2]

Source link

Tags: AfricaCaremergingHubmaking
198 Nigeria News

Nigeria Smart News contributes to latest news of Nigeria Smart news and Up to date with technology news.

198massmedia Group. USA. 3821 Dominion Drive, Dumfries, USA. 22026.

Toll Free 1 888 642 8433.
Contact: info@198nigerianews.com

LATEST UPDATES

Ghanaian, Dutch Businesses to Explore Business Opportunities

Macron heads to Cameroon for 3-nation Africa tour amid mixed reception

Africa Taken for Neo-Colonial Ride — Global Issues

Kenya: Visa Processing Delays a Result of Backlog Caused By Covid-19 Pandemic – U.S. Embassy

Africa: Over 10 Million Covid-19 Recoveries Confirmed Across Continent

Both UK & Congo Think They’re Climate Leaders COP26s Fallout Shows How Far Adrift They Are — Global Issues

Trump returns to Washington after 2020 election loss

Africa: Russia Turns to Africa Amid Diplomatic Isolation

Terrorists attack Nigerias Presidential Guards Brigade, wound 3 soldiers

RECOMMENDED

No Content Available
  • Home
  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact Us

Copyright © 2022 - 198 Nigeria News.

No Result
View All Result
  • HOME
  • VIDEO NEWS
  • BUSINESS NEWS
  • FEATURED NEWS
    • NIGERIA USA NEWS
    • NIGERIA EU NEWS
    • NIGERIA CHINA NEWS
    • NIGERIA UK NEWS
    • NIGERIA FRANCE NEWS
    • NIGERIA GULF NATIONS NEWS
    • NIGERIA INDIA NEWS
    • NIGERIA RUSSIA NEWS
    • NIGERIA ITALY NEWS
    • NIGERIA TURKEY NEWS
    • NIGERIA EGYPT NEWS
    • NIGERIA BRAZIL NEWS
    • NIGERIA THAILAND NEWS
    • NIGERIA PHILIPPINE NEWS
  • POLITICAL NEWS
  • MORE NEWS
    • NIGERIA TECHNOLOGY NEWS
    • NIGERIA MOVIE INDUSTRY
    • NIGERIA CRYPTO NEWS
    • NIGERIA AGRICULTURE NEWS
    • OVERSEAS JOBS NEWS
    • NIGERIA CONSTRUCTION NEWS
    • OVERSEAS SPONSORSHIP
    • 198TILG MEDIA TRAINING
    • NIGERIA IMMIGRATION NEWS
    • NIGERIA EDUCATION NEWS
    • NIGERIA VENTURE CAPITAL NEWS
    • NIGERIA JOINT VENTURE NEWS
    • NIGERIA UNIVERSITIES
    • NIGERIA MANUFACTURERS
    • NIGERIA BUSINESS HELP
    • NIGERIA PARTNERSHIP
  • ASK IKE LEWUMA
  • REGISTER NGO
  • CONTACT

Copyright © 2022 - 198 Nigeria News.