Volkswagen is set to sell more cars in Nigeria as the price of oil recovery. VW announced that they would also start producing more models in Rwanda this coming June including Teramont, Passat and Polo.
Thomas Schaefer, head of Volkswagen South Africa announced that they were expecting increased sales in Nigeria as the country’s economy is recovering. In 2017, the company recorded decreased sales in Nigeria to less than 40 units. Nigeria was among other states hit hard by the crashed prices of crude oil in 2014 which is their primary export commodity. Oil prices have been rebounding, and the economy is finally recovering.
Volkswagen resumed production of cars in Nigeria by assembling in 2015. This was their first auto company outside South Africa. Mr. Schaefer revealed that they would begin by producing at least 2,000 units in 2018, but he would personally be pleased to reach 10,000 units. Volkswagen is also assessing other markets in Africa including Ghana and Ethiopia in their expansion plan.
Volkswagen invested about $20 million in the assembling plant in Rwanda as part of their plan to enter the sub-Saharan African market. Schaefer revealed that the company aimed at attracting East African motorists away from the use of second-hand cars. VW had earlier said that they would start the production of only three models including the Teramont, Hatchback Polo and the Passat. In Rwanda, VW has provided almost 1000 jobs to the Rwandans. The company had also hoped to lessen the number of second-hand cars in the country by producing new affordable units. Volkswagen also set up camp in Kenya and established an assembling plant in the industrial area of Thika where models such as the VW Polo Vivo and Hatchback cars are produced. President Uhuru Kenyatta welcomed this move as part of his Big Four plan for his last term in government.