Automobile experts caution FG against the import of used cars from China

08/29/2019

Posted by: Chris Odogwu

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Automobile experts have warned that importation of used cars from China will be to the detriment of the country. What are the reasons? Read them below!

Automobile experts in Nigeria have warned that the announcement made by the Chinese Ministry of Commerce, recently, about the importation of used cars from China, is not in the best interests of Nigeria. This was made known by experts under the umbrella of Motor Vehicles and Miscellaneous Assembly Sectoral Group, an arm of the Manufacturers Association of Nigeria (MAN).

Chairman of the organization, Dr David Obi, said that the act would be to the detriment of the Nigerian automotive industry. In his opinion, the “Chinese gift” would lead to an influx of used vehicles, submerging efforts being made in the local automotive industry.

Obi who doubles as DVC Group Chairman lamented that the importation would add to the already bad condition the importation of used cars from America and Europe has caused in the country, thwarting growth of the local industry.

Speaking further, the Chairman expressed his shock over the news, saying that the moment the initiative begins, the local industry will be finished. Vehicles that have already been used for long in China would be shipped down to the country as a dumping ground to end their lifespan. Obi further stated that the Federal government would be taking the task of disposing of their used vehicles from China, by allowing such an arrangement to take place.

>>> Can you tell a good used car from a flooded one? See here: How to avoid buying Tokunbo cars damaged by flood - 6 simple tips

used-cars

Used cars are mostly bought by Nigerians who can't afford brand new ones

The Chairman also lamented over the Nigeria Automotive Industry Development Plan (NAIDP) which is yet to be given assent to by President Muhammadu Buhari. He said that the absence of such policies was being taken advantage of by the Chinese to penetrate the auto industry. According to him, the importation of used cars would further discourage Original Equipment Manufacturers (OEM) from investing in the Nigerian auto industry.

In his words:

“Luckily for them (the Chinese), we are relieving them of the burden of disposing of vehicles they can no longer use. But, unfortunately for us in Nigeria, our government does not seem to realize the implications of allowing this kind of dumping.

“One of the many implications of a legal framework for the policy and the imminent invasion of Chinese ‘tokunbo’ vehicles is that many renowned OEMs (original equipment manufacturers), who are afraid to invest in Nigeria because of our usual policy summersault, will remain reluctant because there is no assurance that their investments will be protected.”

>>>Want more news in the auto industry? Always visit Naijauto.com for updates!

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Chris Odogwu

Chris Odogwu

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Chris Odogwu is a Content Writer and Journalist. He holds a bachelor's degree in Mass Communication from University of Jos and a master's degree in Mass Communication from University of Lagos. His works have been published in top local and international publications including Forbes, HuffPost, ThriveGlobal, TheNextScoop and Nigeria360 among others. A member of the Nigerian Institute of Public Relations (NIPR), the thrill he gets from writing about exotic cars feels almost the same as riding in them.

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