In a recent statement aired on Channels Television, Innocent Chukwuma, the founder of Innoson Vehicle Manufacturing (IVM), Nigeria’s pioneering indigenous automaker, revealed that the cheapest car in their lineup is priced at N22 million. This announcement has sparked widespread discussion among car enthusiasts, industry analysts, and everyday Nigerians, raising questions about affordability, local manufacturing, and the economic factors shaping the automotive landscape in Nigeria.
Who is Innoson Motors?
Founded in 2007 by Innocent Chukwuma, Innoson Vehicle Manufacturing (IVM) is Nigeria’s first indigenous car manufacturing company, headquartered in Nnewi, Anambra State. IVM has become a symbol of Nigerian innovation, producing a range of vehicles including SUVs, sedans, buses, and commercial vans designed to meet the needs of the local market. The company’s mission is to provide affordable, durable vehicles while promoting local content, reducing dependence on imported cars, and creating jobs. Over the years, Innoson has gained recognition for its contributions to Nigeria’s economy, with vehicles used by government agencies, private companies, and individuals across the country.
The N22 Million Price Tag
The claim that Innoson’s cheapest car costs N22 million, as stated by Chukwuma on Channels Television, has raised eyebrows, especially given IVM’s reputation for affordability. To understand this, we need to examine the broader context of Nigeria’s automotive market and the economic realities affecting production costs.
Economic Factors Driving Car Prices
Nigeria’s economy has faced significant challenges in recent years, including inflation, currency devaluation, and rising import costs for raw materials and components. While Innoson prides itself on local manufacturing, many auto parts, such as engines and electronics, are still imported, subject to fluctuating exchange rates. As of May 2025, the naira’s value continues to impact manufacturing costs, pushing up prices for locally assembled vehicles. Additionally, energy costs, logistics, and labor expenses contribute to the final price of a car.
Why the Price Matters
The reported N22 million price for Innoson’s cheapest car has significant implications for Nigerian consumers and the auto industry:
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Affordability Concerns: Innoson has built its brand on providing vehicles that are more affordable than imported brands like Toyota or Honda. A N22 million entry-level price puts Innoson’s cars out of reach for many middle-class Nigerians, whose purchasing power has been eroded by inflation. For comparison, a used Toyota Corolla, a popular choice in Nigeria, can be purchased for N5–N10 million in the second-hand market.
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Local Manufacturing vs. Imports: One of Innoson’s goals is to reduce Nigeria’s reliance on imported vehicles, which are subject to high customs duties. However, if local cars approach the price of imported ones, consumers may opt for foreign brands perceived to have better resale value or brand prestige.
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Economic Impact: Higher car prices reflect broader economic challenges, including the cost of doing business in Nigeria. For Innoson to remain competitive, it may need to innovate in cost-cutting measures or secure government support, such as subsidies for local manufacturers.
What Does This Mean for Consumers?
For Nigerians looking to buy an Innoson vehicle, the N22 million price tag for the cheapest model—if accurate—suggests a need to carefully evaluate options. Here are some practical steps:
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Verify Pricing: Visit Innoson’s official website (innosonvehicles.com) or contact their sales team for the latest price list. Dealerships in Lagos, Abuja, or Nnewi can provide accurate quotes.
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Explore Models: If N22 million refers to a premium model like the G5, more affordable options like the Carrier or Fox may still be available at lower prices.
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Consider Financing: Innoson partners with banks and financing institutions to offer installment plans, which could make their vehicles more accessible.
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Compare Alternatives: Weigh Innoson’s offerings against imported used cars or other local brands like Nord Automobiles to find the best value.
The Bigger Picture: Nigeria’s Auto Industry
Innoson’s pricing reflects the challenges and opportunities in Nigeria’s nascent auto industry. While IVM has made strides in local manufacturing, the sector faces hurdles like limited infrastructure, high production costs, and competition from imported vehicles. Government policies, such as the 2013 National Automotive Industry Development Plan (NAIDP), aim to support local manufacturers through tax incentives and import restrictions, but implementation has been inconsistent.
The N22 million price point underscores the need for stronger government intervention to make local cars more affordable. Subsidies for raw materials, investment in local component production, and improved access to credit for consumers could help Innoson and other manufacturers thrive.
Conclusion
Innocent Chukwuma’s statement on Channels Television about Innoson’s cheapest car costing N22 million highlights the complex dynamics of Nigeria’s automotive industry. Whether this figure reflects a specific model like the G5 or a broader price adjustment due to economic pressures, it underscores the challenges of balancing affordability with quality in a tough economic climate. Innoson Motors remains a trailblazer, and its plans to list on the NGX signal a bright future. For now, consumers should stay informed, verify pricing, and explore financing options to make the most of Innoson’s offerings.
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