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Nissan and Stallion Group to start assembly in Nigeria

Nissan and West African conglomerate Stallion Group intend to jointly launch vehicle assembly in Nigeria.

The announcement is in expectation of final approval by the Federal Government of the new Automobile Industrial Policy, designed to encourage development of the auto industry in Nigeria, and would see Nissan become the first major international manufacturer to launch vehicle assembly in the country following the new legislation.

The parties have signed a Memorandum of Understanding which will result in Stallion – already Nissan’s exclusive distributor in Nigeria – increasing capacity at its existing plant, VON Automobile Ltd. in Lagos.

Stallion currently produces commercial vehicles at the facility. The plant’s annual capacity will be expanded to 45,000 units to assemble a range of cars, light duty trucks, pickups and vans. Full details of the product lineup will be confirmed at a later date, however it is anticipated the first product to be introduced will be the Nissan Patrol SUV in spring 2014.

Capacity at the plant will also be opened to Nissan’s Alliance partner Renault, to be utilized according to future business needs.

Nissan is positioned for significant future growth in Africa as part of its mid-term business strategy. By fiscal year 2016 the company is aiming to double annual sales on the continent, up from 110,000 units at the end of fiscal year 2012. To help achieve this, a number of new models have already been confirmed including an all-new pickup truck which will be produced locally by Nissan at its plant in Rosslyn, Pretoria and the launch of the Datsun brand in South Africa before the end of FY 2014.