Dangote Strengthens Nigeria's Automotive Sector with Launch of Peugeot 3008 GT Model

Dangote Industries has further solidified its position in Nigeria’s automotive industry with the launch of the latest Peugeot 3008 GT model, marking a significant milestone in the country’s vehicle production capacity.

Dangote Peugeot Automobiles Nigeria Limited (DPAN), the official manufacturer and distributor of Peugeot vehicles in Nigeria, has begun assembling the high-performance Peugeot 3008 GT at its state-of-the-art assembly plant in Kaduna. The GT model of this globally acclaimed, award-winning SUV is powered by a 1.6-liter turbo engine, elevating the company’s existing lineup and enhancing its manufacturing capabilities in the country.

This development underscores Dangote’s commitment to boosting local vehicle production, aligning with broader efforts to stimulate growth in Nigeria’s automotive sector.

The Peugeot 3008 GT is a globally successful model, having achieved remarkable success and recognition in various international markets. The first assembly of the Peugeot 3008 SUV in Africa took place in Ghana in 2022 at the Silver Star Auto-owned Tema Assembly Plant. This initiative was part of a larger expansion by Peugeot, facilitated by a partnership with Citroën, Peugeot, and Silver Star Auto, established in 2019.

Dangote Peugeot Automobiles Nigeria Limited began its operations with the re-launch of the Peugeot brand in Nigeria, starting with the assembly of the Peugeot 301 at its Kaduna facility. The company has since expanded its offerings to include the Landtrek pickup, as well as the 3008, 5008, and 508 models, further reinforcing its presence in the local automotive market.

Dangote’s foray into Nigeria’s automobile sector began in 2016 when his group, alongside the Kaduna State Government and the Bank of Industry, acquired a majority stake in Peugeot Automobile. By 2017, Dangote secured a license to build a Peugeot assembly plant in Nigeria, and in 2022, Dangote Peugeot Automobiles Nigeria Limited (DPAN) began full operations.

DPAN, a joint venture with Stellantis Group, the Kano and Kaduna state governments, and Dangote Industries, operates from the Greenfield Ultima Assembly Plant in Kaduna. The plant has a daily production capacity of 120 vehicles. Additionally, Dangote expanded into the commercial vehicle sector with the launch of the Dangote Sinotruk West Africa Ltd (DSWAL) CKD plant in Lagos, which assembles medium, heavy-duty, and light trucks with an annual production capacity of 10,000 units, creating around 3,000 jobs.

Nigeria is making notable progress in boosting its local vehicle production capacity, with the aim of reducing its reliance on imported vehicles and fostering industrial growth. Prominent companies like Innoson Vehicle Manufacturing (IVM), Stallion Group, Nord, and Dangote Group are playing key roles in this effort, significantly increasing the domestic production of vehicles.

The Nigerian government’s ambitious goal, outlined in the Nigerian Automotive Industry Development Programme (NAIDP) 2024-2034, is to encourage local manufacturing of vehicle spare parts and reduce imports, which currently cost the country around US$1 billion annually. A crucial part of this initiative is the development of local automotive components, such as batteries, tyres, and exhaust systems, which will strengthen the local industry.

By advancing local manufacturing efforts, Nigeria can reduce its dependence on imported vehicles and components, ultimately contributing to the country’s broader economic development objectives and creating more job opportunities for its citizens.

Main Image: MSN