Russia’s AvtoVAZ Battles for Nigeria’s Market Share

* Plans Local Assembly Plant, Spare Parts CNG Conversion Plant

In a major push to expand its global footprint, Russia’s largest carmaker, AvtoVAZ, has planned to build presence in Nigeria’s automotive market with a view to fight for a market share.

The carmaker, which is known for its Lada brand of cars, SUVs, and commercial vehicles, aims to capitalize on Nigeria’s rapidly rising vehicle demand, driven by urbanization and middle class.

With over 230 million population, Nigeria boasts one of the largest automobile markets in Africa, with over 400,000 cars imported annually.

However, the country’s reliance on imported used vehicles, or “Tokunbo,” has retarded the growth of the local automotive industry.

AvtoVAZ’s entry into the market will turn this around, with the aim of offering locally assembled, low-priced cars that will compete with imported used vehicles as well as other new cars.

Under its expansion strategy, AvtoVAZ will establish a car assembly plant in Nigeria that will be followed by a spare parts hub and repair shop in Lagos, to be opened in 2025.

It aligns with the National Automotive Industry Development Plan to reduce Nigeria’s dependence on imports and encourage local automobile production.

Besides these facilities, AvtoVAZ also plans to establish a plant for converting cars to compressed natural gas (CNG) in collaboration with a Russian engineering firm. This will be to aid Nigeria’s effort towards environmentally friendly and affordable transport modes and enable the fitting of gas engines on Lada cars at the point of manufacture or locally.

Being AvtoVAZ’s representative in Nigeria, Adewole Opeyemi explains that the CNG conversion center will benefit customers immensely because automobiles with gas engines will not incur duties. “If you import CNG automobiles to Nigeria, there is no duty to be paid, and this is the reason we are negotiating with authorities concerned,” Opeyemi further explained. “While certain Lada automobiles will have factory-installed gas engines, others will be converted locally by Russian specialists.”

AvtoVAZ’s foray into Nigeria is a turning point in the nation’s automotive history, providing Nigerians with more options and fueling the government’s industrialization agenda. The firm’s move is set to generate employment, drive economic growth, and reshape the country’s automobile industry. With its inexpensive, locally made vehicles, AvtoVAZ will be a force to reckon with in Nigeria’s booming economy, and its commitment to green technologies will help it to push environmentally friendly transportation policies in the country.