French auto maker PSA Peugeot Citroen has said it will start producing cars in Nigeria in the second quarter of this year, after signing an assembly and sale of cars agreement with PAN Nigeria Limited, according to local media reports here Thursday.
The report quoted a statement from the Paris-based firm as saying it will begin building its 301 sedan in small volumes at a plant operated by PAN Nigeria Ltd in the North-Central city of Kaduna.
The vehicle will be produced from semi-assembled kits of parts shipped from Peugeot’s plant in Vigo, Spain.
PSA Peugeot Citroën (Paris:UG) and PAN Nigeria Limited signed an assembly and sale of cars agreement in Nigeria on 11 July 2014.
“The first vehicle concerned by the agreement will be the Peugeot 301, the assembly of which will begin in the second half of 2014 at the Kaduna plant. Under the terms of the agreement, PAN Nigeria Limited will also be able to assemble the Peugeot 508 and the Peugeot 308,” the statement said.
The agreement between the two firm is in line with the new automotive industry development policy introduced by the Nigerian government to encourage the production of cheap cars for the growing middle class, create employment, transfer technology, skills and encourage local production.