Innoson Vehicles: How Chukwuma Achieved the Impossible with 65% Local Content

In an insightful conversation with Chief Innocent Chukwuma, the Chairman/CEO of Innoson Vehicles Manufacturing Ltd., he shares the remarkable journey of his foray into the auto manufacturing business and the challenges he’s faced along the way. With over 13 years of experience in the industry, Chief Chukwuma’s story is one of determination, innovation, and a commitment to transforming the Nigerian automotive landscape.

Chief Chukwuma’s journey into the auto manufacturing business was preceded by his successful venture in the motorcycle industry. At the time, Nigeria had several companies dealing in motorcycles, each representing different international brands. However, Chief Chukwuma saw an opportunity to do things differently. He recognized that importing fully built motorcycles was costly, and he believed that assembling them locally could lead to cost savings.

A Vision for Component-Based Manufacturing

Chief Chukwuma’s vision was to import motorcycle components rather than fully built units. This approach allowed him to fit a remarkable 150 units of motorcycle components into a single 40-foot container, compared to the 36 units that other companies were importing as fully assembled motorcycles. This efficiency allowed him to offer motorcycles at significantly lower prices, selling them at N80,000, while competitors were charging N150,000.

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By importing motorcycle components and assembling them in Nnewi using local technicians, Chief Chukwuma was able to drastically reduce costs. The price of his motorcycles dropped to N60,000, which disrupted the market dominated by more expensive imported motorcycles. He achieved this by opening a plastic factory in Enugu to produce plastic components, further lowering costs and helping to make new motorcycles more affordable than second-hand options.

Expanding to Automobiles

Chief Chukwuma’s successful experience in the motorcycle industry and his passion for providing affordable and quality vehicles led him to venture into the automobile manufacturing business. His goal was to make new vehicles more accessible to Nigerians and reduce the reliance on second-hand vehicles. However, foreign exchange challenges have affected the pricing of vehicles. Chief Chukwuma had initially planned to sell one of his SUVs for N1 million but, due to forex issues, the price is now N10 million.

Local Content and Challenges

Innoson Vehicles Manufacturing Ltd. places a strong emphasis on local content, with Chief Chukwuma stating that the vehicles produced contain not less than 65 percent locally sourced components. The company’s commitment to utilizing local materials is a testament to its dedication to supporting Nigeria’s manufacturing industry.

Chief Chukwuma’s journey has not been without challenges. Kidnappings of workers and legal battles with financial institutions are among the difficulties he’s faced. Additionally, issues with electricity supply and fluctuations in foreign exchange rates have posed challenges. Despite these hurdles, Innoson has continued to grow and thrive.

In conclusion, Chief Innocent Chukwuma’s journey from the motorcycle industry to auto manufacturing is a testament to his entrepreneurial spirit and commitment to revolutionizing Nigeria’s automotive industry. His focus on local content and providing affordable vehicles is changing the landscape of the Nigerian auto market, and his story is an inspiration to aspiring entrepreneurs in the country.

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