Ade-Ojo: Why We Oppose Execution of National Auto Policy

The National Automotive Policy was introduced and executed in a way that favoured a particular dealer, the Chairman of Toyota Nigeria Limited, Chief Michael Ade-Ojo, has said.

“We are not opposed to the auto policy but what we oppose is the way it has been introduced and executed. It is like our brand and some other brands have been targeted and some people have been undeservedly favoured,” he said.

He stated this at the 2015 Awards and Customer Night held in Victoria Island at the weekend.

According to him, “The government announced this policy on October 2 and on October 3 (2014), we were told that if you did not open Form M by that date then you will have to pay what they termed levy of 35 per cent. We discovered that as at the date, on October3 or 4, a particular company had opened duty for 15,000plus vehicles and this company only sold about 100plus not up to 2000 the previous year. We shouted, we complained but unfortunately the government turned deaf ears to our complain. This particular company brought in these vehicles early last year when others were still groping as to what to do.”

He said his company was able to manage last year because of the usual way they do business at Toyota, explaining that they always ordered vehicles monthly. “We ordered, not expecting this bombshell; we order vehicles every month but when we order, for example, this month, it takes five months to get those vehicles delivered to us here in Nigeria. We cannot do anything about this because Toyota does not produce vehicles which it has not sold. So, because we had orders in expectation of our business, we able to bring in those vehicles you were able to buy at the old price. Of course there is an end to this because after five months this policy kicked and therefore our prices had to go up and the situation has remained.”

He noted that there was a three-month grace period because the time was extended from April 1 to June and that they could only manage to bring in vehicles for about seven months that did not incur the levy.

He also recalled the devaluation of the naira, saying it also affected the cost of Toyota vehicles. “That policy was not fair to all concerned but there was no response and this particular dealer brought in over 15,000 vehicles at the old price, and they are still selling these vehicles.”

He said because of their plan to maintain a sizable portion of their customers, they had taken measures to make Toyota vehicles available to those who desired them.

He said Toyota Nigeria has started an assembly plant regardless of the fact that “from all business parameters, it is not the wisest way to go. But since we must sustain our various capacities, we have embarked on this. By the Grace of God, our assembly will be completed by July/August this year.”

Hinting at a review of the National Automotive Policy, he said: “You might have been denied your love, which is Toyota, but by the grace of God, things will go back whereby situations will be general; it will not be sectional and therefore you will again enjoy the best from Toyota.”

He promised that: “We are in this market to stay. There is a very temporary posture. “By the Grace of God, things will change just as there will be a change in less than two weeks, there will also be a change in the vehicles that you are forced to ride. I’m very happy to say that very soon we will all be back to very good business.”

He thanked the dealers and customers for their loyalty and patronage.

“We are having a common problem with the introduction of what the government termed Auto Policy. This problem has brought concerns to both our customers and us. The government has increased duties from around 30 per cent to as high as 70 per cent, if you add 35 per cent as duty and then 35 per cent as levy. This will mean there is now 70 per cent duty on the vehicles that we bring into the country. This is pain to us as your suppliers and to you as users because there is no doubt that in this kind of painful addition to the cost definitely less people will be able to afford these vehicles.”

He said last year, TNL introduced some new generation cars like the Yaris, Corona, Hilux Pickup, with manual and automatic transmission. They also introduced the 10-seater Hiace Luxury, adding that it is the best vehicle to move business executives around.

“There is also the Hiace automatic, even for commercial use.”