Elizade JAC Motors Partners SMEDAN, Targets SMEs, Small Businesses With New Truck Financing Offer
Elizade JAC Motors has unveiled a mobility and finacing solution targeted at small and medium-sized businesses, offering access to light-duty trucks as part of efforts to help SMEs reduce logistics costs and build sustainable business assets.
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 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 ₦8.7 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.
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.
“The initiative aligns with the government’s broader SME development agenda, particularly improving access to finance and productive assets. For many small businesses, transportation is a significant operating cost, and solutions that enable SMEs to own productive assets can help reduce operating constraints, improve productivity and support sustainable business growth,” said Olukayode Shode.
Beyond vehicle acquisition, Elizade JAC Motors said customers would have access to after-sales support, including a three-year warranty, three years of basic servicing and a service network of about 39 centres. As part of the engagement, attendees were also offered a two per cent discount on the vehicles.
The company said the initiative is open to business owners generally, although SMEs remain a key focus of the partnership. The broader objective is to help businesses convert the money they repeatedly spend on transportation into ownership of productive assets that can support their operations over time.
With logistics remaining a major operating expense for many businesses, the company said access to newer and more efficient trucks, combined with structured financing and after-sales support, could give SMEs greater control over their distribution operations.
