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French automakers partner Dangote to reboot Nigeria’s vehicle production with 44,000-unit goal

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French automobile manufacturers are making a renewed push into Nigeria, partnering with local companies to revive vehicle production in one of Africa’s largest car markets.

Two collaborations are already underway, targeting the production and sale of 44,000 vehicles annually.

The announcement came from Marc Fonbaustier, the French Ambassador to Nigeria, who told PREMIUM TIMES that French carmakers are working with Nigerian partners to gradually restore their presence.

The first partnership involves Peugeot and Nigerian stakeholders through Dangote Peugeot Automobiles Nigeria (DPAN), while the second pairs Renault with Coscharis Group to co-produce vehicles under the Logan brand.

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According to Mr. Fonbaustier, DPAN initially relaunched with the Peugeot 301 but is now exploring the production of several other models, including the 308, 3008, 5008 and 508. The venture is targeting the production and sale of 44,000 vehicles annually, a goal the ambassador described as “ambitious but achievable.”

The second initiative involves Renault and Coscharis Group, which are collaborating to co-produce vehicles under the Logan brand for the Nigerian market.

Marc Fonbaustier, the French Ambassador to Nigeria said French carmakers are working with Nigerian partners to gradually restore their presence. [PHOTO CREDIT: @FMINONigeria]

French automakers were once dominant in Nigeria’s automotive sector, particularly through Peugeot Automobile Nigeria (PAN), which operated a major assembly plant in Kaduna.

Established in the 1970s, PAN assembled several Peugeot models locally and became synonymous with official and private transport across the country.

Vehicles such as the Peugeot 504 and later models were widely used by government agencies, businesses, and private owners, cementing the French brand’s influence in Nigeria’s automobile landscape for decades.

However, economic challenges, policy shifts, and the influx of cheaper imported vehicles gradually weakened local assembly operations, leading to a significant decline in production and market share for French brands.

In response, Dangote Group acquired controlling stakes in the company, consolidating local production under the newly formed Dangote Peugeot Automobiles Nigeria (DPAN).

Under Dangote’s stewardship, DPAN modernized its assembly lines and expanded capacity, creating a platform for the current relaunch that includes multiple Peugeot models, including the 301, 308, 3008, 5008, and 508.

Today, French companies face a far more competitive environment. Automakers from China and India have rapidly expanded their presence in Nigeria, offering relatively affordable vehicles and increasingly establishing local assembly operations.

Despite the competition, French investors remain confident about Nigeria’s long-term market potential. Marc Fonbaustier noted that around 100 French companies still operate in Nigeria, directly employing about 16,000 Nigerians, and that French investments in the country were once estimated at $10 billion before the depreciation of the naira.

While Fonbaustier acknowledged that rebuilding France’s automotive presence will take time, he said the new partnerships with Dangote and other Nigerian companies represent the beginning of a gradual return for French carmakers in Nigeria’s evolving vehicle market.(Business Insider)

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