PSA/Peugeot-Citroen will commence vehicle output in Kaduna, Nigeria this year at a site operated by PAN Nigeria Ltd. The move comes after Renault-Nissan started producing cars in the country months ago. As part of the setup, PSA will ship semi-knockdown kits of the Peugeot 301 to Kaduna from its Vigo factory in Spain.
PSA said in a statement that it may add production of other models like the Peugeot 308 compact and 508 later. According to PSA’s operations director for Africa Middle East, Jean-Christophe Quemard, the move will allow the group to take full advantage of growth opportunities in the market.
In October 2013, Renault-Nissan disclosed plans to commence production in Nigeria with local partner Stallion Group and in April, the group built its first Nissan Patrol SUV at a site in Lagos.
Renault-Nissan has since added output of the Almera sedan and NP300 pickup, a Nissan spokesman told Automotive News Europe. He remarked while initial volumes are modest, Nissan is expecting to accelerate output starting August.
Renault-Nissan chief executive Carlos Ghosn remarked that thet Japanese carmaker aims to turn Nigeria into a significant manufacturing hub in Africa. He added that "as the first-mover” in Nigeria, Nissan is positioned for the long-term growth of the market and across the continent.
Takashi Hata, Nissan senior vice president and chairman for the Africa, Middle East and India, said in a statement that Africa is a strategic growth driver for the Japanese carmaker.