How Innoson Started Manufacturing Gas-operated Vehicles Ahead of Subsidy Removal

• Innoson Vehicle Manufacturing has sustained its momentum in the manufacturing of gas-operated vehicles.
• The company's chairman says the foresight that fuel subsidy will be removed pushed him into expanding into CNG vehicles
• He however, calls on the government to intervene in order for Nigerians to be able to convert their petrol vehicles to CNG at a lower cost

Innocent Chukwuma, the Chairman of Innoson Vehicle Manufacturing (IVM) has revealed how he capitalised on the potential removal of fuel subsidy to manufacturing Compressed Natural Gas (CNG) vehicles.

The Anambra-born businessman discussed this in an interview with Leadership, where he reflected on his entrepreneurial journey and

Chukwuma said that he expanded his business into the production of CNG vehicles after foreseeing an imminent rise in fuel prices. He said he anticipated the government's decision to eliminate fuel subsidy, leading to an eventual surge in fuel pump prices.

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He said:

I knew that if the pump prices of petrol and diesel go so high up, everybody would switch to CNG. That was my own thinking before I started to develop CNG vehicles. I knew it was the way forward. I knew that the government must eventually remove fuel subsidy. So, I started planning by buying the equipment. That was why I was able to produce so many units immediately the fuel subsidy was removed by the government.

He said that in cities like Benin, a remarkable 80% of the vehicles on the road run on CNG because of the positive experience. He added that in in the near future, a significant portion of the Nigerian population will adopt CNG-powered vehicles.

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Conversion from petrol to gas-operated vehicle

He said that many Nigerians and government offices have now started acquiring CNG vehicles, but a significant concern surrounding their adoption is the substantial expense associated with converting petrol and diesel vehicles to run on gas.

The cost of conversion is very high now and before the cost can come down, the government has to intervene. Before the cost will come down, there is a need for an investment which requires government support. With such investment, the cost of conversion to CNG can be reduced to N300,000.

He added that there are also certain components that are supposed to be readily available or produced in Nigeria. If that happens, the conversion will not cost more than N300,000 and not N800,000 which it presently goes for.

Subsidy removal: Innoson rolls out gas-powered trucks, buses, and cars

Meanwhile, Legit.ng earlier reported that Innoson Motors, the indigenous automobile manufacturing company in Nigeria, unveiled its latest innovation.

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The automobile company launched the Innoson LNG/CNG Gas Trucks, buses, and cars, at its production facility located in Nnewi, Anambra State.

This milestone was celebrated on Tuesday, April 20, 2023, under the auspices of Otunba Francis Meshioye, the President of the Manufacturers Association of Nigeria (MAN).

This development aligns with the impending removal of petrol subsidies by the Nigerian government, scheduled for June this year.

Source: Legit.ng