Automobile Industry In Nigeria Essay

ULYANOVSK AUTOMOBILE ZAVOD: EXPANSION INTO THE NIGERIAN MARKET
Introduction

ULYANOVSK Automobile Zavod was founded in 1941 as a subsidiary of Sollers JSC and as part of the Soviet war strategy against Germany. The company gradually evolved and experienced its Golden Age in 1972 with the replacement of GAZ 69 by UAZ 469 which entitled the brand to a superior status as the car was exported to 80 countries. The vehicles consisting of buses, trucks and SUV’s were initially designed for the military, police and agricultural purposes until the 1980’s. Along with manufacturing, the company is involved in offering car manufacturing services and functions locally and internationally through various affiliated companies and subsidiaries. The company’s

Grey imports are however on a rise and can be categorized into “unintended”, “licensed” or “distressed” goods. The grey vehicles in Nigeria however fall in all the categories as they are intended to be purchased by other countries. There are moreover two categories of Nigerian Automobiles namely “new” and “used”, the used category forms a great proportion of the local imports. There is therefore a great potential for the Nigerian Automobile Industry with a ratio of 16 vehicles per 1000 passengers compared to South Africa’s ratio of 159 vehicles per 1000 passengers therefore creating a gap which serves as a unique opportunity for other players in the automobile industry. UAZ should therefore focus on exporting to the Nigerian industry due to the growing demand of vehicles and limitation of local brands in the region. The Nigerian Automotive Plan believes that Nigeria can become an important global producer of vehicles, accessories and components. Various multinational companies especially those of South Africa are focused on the development of the Nigerian