Business

Honda Move to Suspend Vehicle Production At Thai Auto Plant

Published

7 months ago

July 9, 2024

Honda Motor will halt vehicle production at its factory in Ayutthaya province in Thailand by 2025 as it plans to consolidate its output under the plant it runs in Prachinburi province, the Japanese automaker said on Tuesday.

The move highlights the tougher conditions Japan’s second-biggest automaker faces in the Southeast Asian nation as Chinese brands aggressively seek to gain market share in Thailand and consumer demand for electric vehicles grows.

Honda plans to produce car parts at the Ayutthaya plant that was first opened in 1996 when it stops making vehicles there next year, a company spokesperson said.

It will consolidate vehicle production at the Prachinburi plant, which was opened in 2016, according to the spokesperson. The factories are the only two plants the automaker has in Thailand.

Honda has seen the combined production at the plants fall from 228,000 vehicles in 2019 to under 150,000 a year for each of the four years through 2023.

The company’s sales in Thailand have been under 100,000 for each of the four years through last year.

The company hopes to get rid of the gap between vehicle production and sales it has seen in Thailand, according to the spokesperson.

But the automaker has already been exporting from Thailand, mainly to other Southeast Asian markets such as Indonesia and the Philippines, the spokesperson said. Honda has no current plans to make new investments in Thailand, he added.

In China, Honda and rival Japanese automaker Nissan Motor have been hit especially hard by competition from rising Chinese brands, which have attracted consumers with low-priced, software-loaded EVs and plug-in hybrids.

Japanese automakers now face a risk of losing customers in markets outside of China, such as those in Southeast Asia, to upstart Chinese brands that are increasingly looking to step up car exports and setting up factories overseas.

Last week, China’s BYD opened a plant for battery-powered cars in Thailand that is part of a wave of investment worth more than $1.44 billion from Chinese EV makers that are establishing factories in the country.

Business

Telecom Operators Reject NLC’s Demand for Tariff Reduction, Justify 50% Hike

Published

5 days ago

February 4, 2025

Samson Adeyanju

By Emmanuel Ogbodo

Nigeria’s Mobile Network Operators (MNOs) have rejected calls from the Nigeria Labour Congress (NLC) to negotiate a reduction in the recent 50% tariff increase, insisting the hike is necessary for the industry’s sustainability amid rising operational costs.

The NLC, opposing the adjustment, has demanded a rollback to 5% and threatened a nationwide protest on Tuesday, February 4, if its demands are not met.

The union described the increase as “insensitive and unjustifiable,” warning it would further strain Nigerian consumers.

At a weekend forum in Lagos, representatives from the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and major telecom firms, including MTN Nigeria, Airtel Nigeria, and 9mobile, defended the hike.

ALTON Chairman Gbenga Adebayo likened the increase to a “lifeline” for the industry, arguing that anything lower would cripple operations.

MTN Nigeria’s Chief Corporate Services & Sustainability Officer, Tobechukwu Okigbo, clarified that operators do not engage directly with the NLC, as ALTON manages industry-wide negotiations.

Airtel Nigeria’s Director of Corporate Communications and CSR, Femi Adeniran, added that discussions with labour unions fall under the purview of government agencies and ALTON.

The Nigerian Communications Commission (NCC), which approved the tariff adjustment on January 20, 2025, defended the move, citing inflation, foreign exchange volatility, and rising energy costs.

The commission emphasized that the decision aligns with its mandate under the Nigerian Communications Act, 2003, to ensure telecom sector viability.

Despite these justifications, the NLC remains firm in its opposition. Union President Joe Ajaero reiterated the demand for a significant reduction, warning of nationwide protests if the hike is not reversed.

Business

Dangote Refinery Reduces Petrol Price to N890 Per Litre

Published

1 week ago

February 1, 2025

Samson Adeyanju

By Alexis Uchendu

Dangote Petroleum Refinery has announced a reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N950 to N890 per litre, effective February 1, 2025.

The company attributed the price adjustment to a favorable shift in global energy markets and a decline in international crude oil prices.

This follows a previous price hike on January 19, driven by rising crude costs.

Dangote Refinery expressed optimism that the price cut will lower fuel costs nationwide, ease the cost of living, and positively impact key economic sectors.

The company also urged fuel marketers to reflect the reduction at retail stations, ensuring consumers benefit from the adjustment as part of broader economic recovery efforts led by President Bola Ahmed Tinubu.

Reaffirming its commitment to Nigeria’s self-sufficiency in refined petroleum products, the refinery pledged to strengthen the country’s position as a leading oil export hub in Africa.

Business

Naira Gains Against Dollar Amid CBN Reforms

Published

1 week ago

January 30, 2025

Samson Adeyanju

By Adenike Lawal

The Naira appreciated by 0.78% at the official market on Wednesday, trading at N1,510.72 per dollar, an N11.96 gain from the previous day’s rate of N1,522.68, according to FMDQ Securities Exchange data.

Since December 2024, the Naira has remained relatively stable, largely due to ongoing reforms by the Central Bank of Nigeria (CBN).

On Tuesday, the apex bank introduced additional measures, including a waiver on the 2025 annual license renewal fee for Bureau De Change (BDC), operators and the launch of the Nigeria Foreign Exchange (FX), Code to enhance transparency in forex transactions.

Dr. Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria (ABCON), praised the CBN’s initiatives, urging continued support for policies that strengthen the local currency.