Honda to Sell Cars in Nigeria
Executive Summary
Honda Automobile Western Africa, based in Lagos with a capital investment of NGN1.85 billion, is the auto maker’s second sales subsidiary established in the African region after South Africa in 2000.
Honda establishes a wholly owned subsidiary to import and sell light vehicles and auto parts in Nigeria, West Africa’s largest market.
Honda Automobile Western Africa, based in Lagos with a capital investment of NGN1.85 billion ($11.5 million), is the second local auto subsidiary established by Honda in the African region after South Africa in 2000.
The subsidiary will import the Honda City car from Thailand and the Civic, Accord, CR-V and other models from the U.S.
Manabu Nishimae, Honda CEO for regional operations, including Europe, CIS, the Middle East, Near East and Africa, says in a statement the basic approach to West Africa is to start small and grow big.
Honda has been expanding its motorcycle business in Nigeria through a production and sales subsidiary, and Nishimae says it will use the same model to expand its automobile business. Nigeria is the most populous country in Africa, and continuous economic growth is expected.
Honda is aiming for 3,000 light-vehicle sales in Nigeria this year and 4,000 in 2014, based on 2012’s delivery of about 2,500 units.
The Japanese auto maker sees Africa as a new growth market and has been strengthening its position through its local subsidiaries.
Honda established its motorcycle-production operation in West Africa in 1979, an automobile business office in East Africa in December 2011 and a motorcycle production and sales subsidiary in Kenya, South Africa, in March of this year.
