Small and medium-sized enterprises (SMEs), regarded as the engine of the economy, are set to gain improved access to affordable business mobility. This is on account of Elizade JAC Motors, which has partnered with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to unveil a mobility and financing solution tailored to the needs of the sector.
The initiative provides SMEs with access to trucks to boost their operations, enabling them to strengthen their logistics operations.
Under the partnership, the company, through its SME-focused offering, is targeting businesses that rely heavily on hired vehicles, transporters or used trucks to move goods and supplies. ‘The initiative provides access to JAC trucks ranging from 1.6-tonne to 10-tonne capacities, with options including petrol, hybrid, CNG and diesel models.’
Speaking at the engagement, Arvind Bhardwaj, Chief Operating Officer, Elizade JAC Motors, said that the initiative was designed to address the recurring transportation expenses faced by SMEs and help businesses transition from depending on third-party transporters to owning their logistics assets.
According to Bhardwaj, the company’s assessment of the total cost of ownership also showed that purchasing used vehicles could become significantly more expensive over time because of maintenance, repairs, tyres, batteries and other running costs.
He said the assessment found that an SME could spend about N8.7 million more over a five-year period with a used vehicle compared with a new JAC truck, when the associated ownership and maintenance costs are considered.
Olumide Olaokun, Senior Brand Manager, Elizade JAC Motors, said the company’s entry-level 1.6-tonne truck is available in petrol and hybrid CNG variants, while the larger 3-tonne, 5-tonne and 10-tonne trucks are diesel-powered.
The hybrid CNG option, according to the company, can travel about 120 kilometres on a tank and could significantly reduce operating costs in areas where CNG infrastructure is available.
For SMEs considering acquisition, the financing structure allows customers to make an initial contribution and finance the balance through partner banks. One financing illustration presented at the engagement involved a 20 per cent initial contribution, an annual interest rate of 25 per cent and a four-year repayment period, with the monthly repayment for the 1.6-tonne truck projected at less than ?800,000, the statement said.
Another option allows customers to make a 10 per cent payment to reserve a vehicle while the bank processes the financing for the balance. The company also said customers who can make a higher initial contribution may be able to speed up the acquisition process.
Olukayode Shode, Zonal Coordinator, South-West Zonal Office of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), encouraged business owners to take advantage of the initiative, particularly as access to affordable business assets remains an important consideration for SMEs.