This association was formed as a platform for the provision of components and parts of global standards for the Nigerian automotive sector.
The Nigerian automotive sector is dominated by imports of components and parts that largely fall short of acceptable standards. The consequence has been economic waste in terms of expense on substandard parts and consequently loss of lives. The automobile is a safety item and there should be minimum tolerance for less than optimal performance of all components and parts. RACDAN is therefore established to ensure that this gap is closed.
RACDAN will invest in common facilities for backward integration by its members. This means that its members will invest in manufacturing products that they import eventually by for instance jointly setting up a Central Press Shop, or a Mold and Die Facility etc; invest in automotive supplier parks for the replacement market and eventually for the Assembly plants; Provide access to trade finance.