Mercedes-Benz plans to start the assembly of minibuses and ambulances in Nigeria, according to a report by AllAfrica.com. In a statement, Benson Uwatse, managing director of Mercedes-Benz Nigeria, said, "The company is working hard to satisfy the automotive demands of the country and is set to capitalise on Nigeria's automotive policy." The automaker does not plan to start the assembly of cars in Nigeria in the near future.
Significance: Mercedes' decision to start the assembly of minibuses and ambulances in Nigeria follows the enforcement of the new National Automotive Industry Development Plan (NAIDP) by the Nigerian government in 2013. The NAIDP raised duties on imports of completely built-up (CBU) units in Nigeria sharply to 70% from 20%. This increase was intended to discourage vehicle imports in the country and encourage local production. Hyundai, Nissan, Volkswagen (VW) and several other OEMs are now assembling vehicles in Nigeria, while 11 new companies including Century Auto (Toyota), Coscharis Auto (Dongfeng, Ford, and Joylong), Dana Motors (Renault), and Tata have been given manufacturing status and are on track to start assembly operations. Having beaten expectations, the National Automotive Design and Development Council (NADDC) has now suspended the issuing of new licences.
