Automotive industry in Kenya

The Automotive industry in Kenya is primarily involved in the assembly, retail and distribution of motor vehicles. There are a number of motor vehicle dealers operating in the country.[1]

Major retailers

Major assemblers

  • Kenya Vehicle Manufacturers (KVM) - Also Assembles for Hyundai Motor Corp
  • General Motors East Africa (GMEA)
  • Honda Motorcycle Kenya Ltd[2][3]
  • Associated Vehicle Assemblers Ltd (AVA). (Largest Assembler in Kenya[4]) Also Assembles for Toyota (East Africa)/ Toyota Kenya Ltd (TKL)[5]
  • TVS Motors Kenya[6][7]
  • DT Dobie for Volkswagen
  • Associated Motors (AM)

Future assemblers

Local car companies

Mobius Motors Logo

Kenya is currently attempting to completely build its own cars. After building its first car in the late 80's (the Nyayo Car), Kenya has a shot at the industry with Mobius Motors, which was founded in 2009.

Challenges

The established dealers face intense competition from imported second-hand vehicles, mainly from Japan and United Arab Emirates. Another issue is that there is more demand for second-hand vehicles rather than new ones because Kenya is generally a low-income country. Thus, Mobius Motors was established to provide low cost cars at about KES. 523,000 (US$6000).

Timeline of the Kenyan car industry

Nyayo Pioneer (1990)
  • 1960s - Volkswagen is assembling the Beetle in Kenya[10]
  • 1976 - First Kenyan Assembled car by Kenya Vehicle Manufacturers
  • 1977 - First Assembled car by Associated Vehicle Assemblers Ltd.
  • 1986 - Nyayo Car, Kenya's first car is built. The car achieves 120 km/h (75 mph)
  • 2009 - Mobius Motors is established by Joel Jackson
  • 2013 - 52.3% of new cars sold in Kenya are assembled in Kenya[11]
  • 2016 - Volkswagen starts assembly of Polo Vivo in Kenya in Cooperation with DT Dobie[12]

References

  1. ↑ PricewaterhouseCoopers. "PwC Kenya: Industries: Automotive". PwC.
  2. ↑ "Honda Worldwide - March 27, 2013 "Honda Establishes New Motorcycle Subsidiary in Kenya"". honda.com. Archived from the original on February 22, 2015.
  3. ↑ Honda sets up factory to make motorcycles. YouTube. 1 August 2013.
  4. ↑ "Toyota drops bid to buy AVA". businessdailyafrica.com.
  5. ↑ "Ventures Africa - Toyota Launches $4.9m Assembly Plant In Kenya". ventures-africa.com.
  6. ↑ "TVS Makes A Foray Into Kenya - Overdrive". overdrive.in.
  7. ↑ TVS to begin motorcycle assembling plant in Kenya. YouTube. 30 July 2013.
  8. ↑ Nyabiage, Jevans (2008-05-15). "Kenya: Tata to Set Up Local Bus Plant". The Nation (Nairobi). Retrieved 2017-08-23.
  9. ↑ http://www.the-star.co.ke/news/article-113038/tata-draws-plans-kenyan-vehicle-market%5Bpermanent+dead+link%5D
  10. ↑ "Volkswagen inaugurates vehicle production facility in Kenya". Retrieved 2017-01-10.
  11. ↑ "More than half of new cars assembled in Kenya on lower taxes". businessdailyafrica.com.
  12. ↑ "First Kenyan made Volkswagen Polo Vivo unveiled". Retrieved 2017-01-10.
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