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China-Nigeria EV Deal Signals Major Push for Local Car Manufacturing

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By Joycelyn Ellakeche Adah

Nigeria’s ambition to become a major player in Africa’s electric vehicle market has received a significant boost, as Chinese automotive engineering firm, Launch Design Shanghai and Hybrid Motors Nigeria signed a strategic agreement to establish electric vehicle manufacturing plants in Lagos and Abuja.

The partnership unveiled at a ceremony in Shanghai on May 8, is expected to accelerate local vehicle production, deepen technology transfer, and expand Nigeria’s clean transportation and industrial manufacturing capacity.

At the centre of the collaboration is “Acely,” Hybrid Motors, Nigeria’s indigenous electric vehicle brand, which the companies said is specifically designed for Nigerian roads, climate conditions, and consumer needs.

Under the agreement, the Lagos and Abuja facilities will serve as dual manufacturing hubs with a projected combined production capacity of 70,000 vehicles annually at full maturity.

The companies described the initiative as a transformative step toward building a sustainable automotive ecosystem in Nigeria while reducing dependence on imported vehicles.

Speaking at the ceremony, Chief Executive Officer of Hybrid Motors Nigeria, Mr. Jubril Arogundade, said the partnership represents a defining moment for Nigeria’s automotive industry and proof that globally competitive vehicles can be developed and assembled locally.

“This partnership is more than a business agreement; it is a commitment to building Nigeria’s automotive future,” Arogundade said.

“With Acely, we are proving that world-class vehicles can be conceived, designed, and assembled right here in Nigeria, by Nigerians, for Nigerians.”

He added that the collaboration with “Launch Design Shanghai” will provide access to advanced engineering expertise capable of ensuring international production standards while maintaining local relevance.

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On his part, Chief Executive Officer of Launch Design, Mr. Wang Xun, described the partnership as a major industrial opportunity that combines global automotive engineering with local market understanding.

“Together, we are not just building vehicles, we are building an industry,” he said.

Launch Design is expected to provide engineering support covering vehicle architecture, manufacturing process systems, design optimisation, and quality assurance operations.

According to details of the agreement, the Lagos plant, situated along the Lekki-Epe corridor, will function as the primary assembly and production centre with an annual capacity of 50,000 units.

Its proximity to the Lekki Deep Sea Port is expected to support exports to regional markets including Ghana, Benin, Togo, and Côte d’Ivoire.

The Abuja facility, located within the Free Zone Business Area of Centenary Economic City, will serve as a secondary manufacturing and technology hub with a projected annual capacity of 20,000 units.

The companies said the location would provide strategic access to Northern Nigeria and regional trade routes across the Sahel.

Industry observers say the dual facility structure could significantly reduce logistics costs, improve operational efficiency, and create jobs across multiple regions of the country.

The companies also projected broader economic benefits from the initiative, including the development of local supply chains, industrial diversification, skills transfer, and increased participation in Africa’s growing automotive value chain.

Acely vehicles are expected to focus on energy-efficient systems, electric and hybrid propulsion technologies, and locally tailored vehicle designs suited to Nigeria’s terrain and transportation realities.

The partnership aligns with Nigeria’s National Automotive Industry Development Plan and the country’s broader push toward cleaner and more sustainable mobility solutions.

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