The founder of Nigeria leading automobile company, Chief Innocent Chukwuma, the Chairman/Chief Executive Officer of Innoson Vehicles Manufacturing (IVM), has debunked assertions that his company only assembles but does not manufacture vehicles.
“Let me use this opportunity to say this once again; Innoson does not assemble vehicles, we manufacture. We build 100 percent vehicle body here and over 60 percent of the products used in manufacturing the vehicle are gotten from Nigeria.
“We make all the carcass of all our vehicles here. We only import some engines and electrical components but produce all the plastic parts here. We have produced many new vehicles according to the demands of our customers and what they need those vehicles for. Even if they need what we do not have, we make the mould and produce their request and to specifications. That is why we are a vehicle manufacturing company, not assembling company.” He said.
Furthermore, he noted that the Federal Government is trying its best with a view to assisting the manufacturing sector but the policies being made are devoid of implementations.
“The Federal Government is doing everything possible to support the manufacturing sector with good policies, but the problem lies in the implementation. They have done enough in terms of policies to support local content but, like I said, implementation is the problem. So, I won’t say that government is not helping. They are doing their best. If you look at the policies, they are favourable.”
However, he noted that the National Assembly Law Makers rejected his vehicles because it was a made in Nigeria product.
“Didn’t you see what happened at the National Assembly recently? They decided to buy Toyota cars made in Japan, that they are too big to drive made in Nigeria cars. Didn’t you hear it in the news?”
Meanwhile, he noted that as it were, he has received orders from another African country.
“As of now, I have order of about $4.7million worth of vehicles from Sierra Leone. That’s what I’m producing now for Sierra Leone government. Normally, I do get order and supply from within and outside the country.”
In addition, he lauded the effort of the Governor of Imo State, Hope Uzodinma amongst the South-East Governors, stating the he is a leading light in the promotion of made in Nigeria products.
“However, if all the South-East governors are like that of Imo, then, we don’t have problems. The present governor is number one in implementing the local content. He deserves an award for that. Go to Imo, all the vehicles they are using are made in Nigeria. So Imo has got somebody in the governor who knows what’s good to do and we appreciate him for that.” He said.
Furthermore, he noted that the driving force of his successes is due to his ability to bring up new business ideas different from what others know.
“This is because when you go into any business, you have to put your own ideas in it and when you do, the difference will be clear and you can make more money than others. You can also drop the business when you think there isn’t much interest in it again. So, to succeed in any business, don’t follow the crowd, always bring your own initiatives. With that, you will be able to make profits.
“That has been my driving force, always looking for new ideas that are different from what everybody knows. For example, when you are into a particular business and it is no longer as lucrative and profitable as it used to because many people have ventured into it, you can leave the business for those people who lack ideas and go into a new business. This is because, as they are coming into the business, the profit margin will continue to diminish. So you leave it for them and find another fresh business idea to develop.”
“I started trading in motorcycle parts with my brother. I started by buying from companies like Leventis that were importing the parts then. From there, I started importing myself. Later, I developed a complete motorcycle and not just the parts. I was the first person to develop complete motorcycle in Nigeria.
“Because of my experience in the spare parts business, I found out that to bring motorcycle parts and couple them here in Nigeria was cheaper than bringing them as a complete motorcycle. So I decided to give it a try and it worked. I brought my own in parts and hired local mechanics to assemble and couple them. With this, my own cost was 40 percent cheaper. So, while others were selling at N150, 000, I was selling at N80, 000. Then, the cost of second hand motorcycle was N90, 000. People who used to buy second hand motorcycle decided to be buying my own since it was brand new and cheaper.
“That’s how I benched my competitors who were selling at N150, 000. So, they had no choice than to adopt my strategy in importing their motorcycles. When they started copying my method, I veered into local production of plastic components of motorcycle parts so that I could be bringing only the iron components from abroad.
“This also helped in bringing the price of my motorcycle down to N60, 000 which has been my aim from the onset. My competitors also discovered that it was better for them to buy plastic components from my company than bringing it from abroad. So, they started buying plastic components from me. With that, I left the motorcycle business for them.” He said.
Meanwhile, he noted that he decided to venture into manufacturing vehicles as a result of people who have already ventured into the business of motorcycles and after a study of all the variables why others have failed in that enterprise.
“After some time, I decided to do what I did in motorcycle in vehicle. So, that’s what I’m doing today. I ventured into vehicle manufacturing immediately I became weak on motorcycle. I changed my focus to vehicle. I studied about vehicle production for about seven years before I could start. When I was building this factory, all my good friends and everybody I knew were asking me why did I venture into the business?
“They said all the people who ventured into it in Nigeria failed. I told them to check all the businesses I have done, that none has failed. Before I entered into vehicle manufacturing, I have seen why others failed. And I told them that I would remove that which made others to fail and I did. That’s why I started by manufacturing and not by assembling. The people who failed started by assembling vehicles in Nigeria. And in that case, if anything happened to the parent company, the assembling plant here would lose because foreigners are not interested in building anything here.
“They are coming to Africa to make profit and not lose, they want to make as much profits as possible and go. They are not interested to build us.
“So, to avoid the pitfalls of others, I went and studied where we had problems and I paid for professionals, expatriates who came here and trained my people. I brought them to Nigeria, about 60 of them, in the first year we started this factory. Some of them finished under one year and left by the second year, I had about 42 and in the third year, I had about 15. Today, I have only eight.” He said.
In another development, he noted that there is an effort in place to open a factory in Imo State.
“I’m going to open a new factory in Imo in partnership with foreign companies. I believe the partnership will help us to develop motor manufacturing on a bigger scale in Nigeria.”
Meanwhile, he reacted to the reason why the factory is not set up in the commercial city of Lagos, noting that Lagos is a very busy city.
“Commercial city of Lagos is too busy. I want where there will be space for manufacturing. I’m also looking at the proximity with my other companies because, the way our companies were set up, factory A can produce something for factory B and vice versa. Another reason is for easy communications and management. I’m not interested in any particular region, be it South-East, South-West or North.” He said.
Besides, he also reacted to the fact that he does not have interest in politics and has no ambition to become a politician with a view to holding a political office in the foreseeable future.
“I am not a politician and I’m not interested in politics. I am a manufacturer. I will be an industrialist until I become weak. When I grow old I go home and retire. I don’t have time for politics. There are people who are politicians, let them continue with their politics. And as for the 2023 presidential election, I’m not interested in who is coming out. When the time comes, I’ll make a choice among those contesting. And I don’t know who I will vote for; it depends on who comes out.” He said.
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