Here's a thread highlighting the automotive industry in Kenya. From new dealerships to kenyan manufactured cars.
Local car distributor Simba Corporation in partnership with Portugal’s Salvador Caetano have announced a comeback for Renault which has been off the Kenyan market for a decade. Under the Simba Caetano Formula, the two partners have launched three new Renault models that are expected to cause ripples in the car market heavily dominated by Toyota.
Simba Corporation bagged the Renault deal last year ending DT Dobie’s marriage with Renault. Renault had exited the Kenyan market following poor sales brought about by lack of ready spare parts for their cars and “Having not been assertive in the Kenyan market over the last decade, we are confident to conquer the market with our new models; Renault Koleos, Duster and Fluence,” said Simba Caetano Formula GM Nashir Kassam.
Speaking at the launch, African Salvado Caetano CEO Andre Pinheiro said: “We are optimistic that our presence will play a larger role in this market not only in our strategic growth, but also in enabling us to be a relevant contributor in the region’s growing automotive industry.”
Renault is set to introduce their full brand range of vehicles in seven African countries having invested heavily in their after sale service and technical expertise.
Japan's Nissan Motor Company, which is aiming to bolster fallen market share in Kenya, would be open to building a local assembly plant if the government took action including changes to import duties on new and used cars, a senior executive said.
East Africa's biggest economy has attracted dealerships such as Porsche in recent years to serve growing wealthy and middle classes.
Nissan has a dealership in Kenya, and could add an assembly plant to go along with manufacturing operations it has in South Africa, Nigeria and Egypt, said Takashi Hata, Nissan's senior vice president for Africa, Middle East and India.
"We are ready to discuss and we are ready to seriously consider to go for the investment," Hata told Reuters during a visit to Nairobi over the weekend, provided the government took action such as setting different tariff levels for importing new and used cars.
The government would also need to boost electricity supplies and cut red tape for new businesses, he said.
Mike Whitfield, a Nissan executive based in South Africa, said Kenya's import duties were currently not favourable.
"Generally, to justify local assembly you need to have a gap of approximately 35 percent," Whitfield said, referring to the difference in tariffs on importing used and new cars.
He said with the tariffs currently at parity, the ratio of used cars sold in Kenya versus new ones was 10 to one.
Nissan aims to raise its market share in Kenya above 10 percent a year from now after sales fell to single digits from about 15 percent in 2012, the company officials said.
The automaker made changes to the distributorship, marketing and advertising of its cars in Kenya in August. It appointed two South African firms and a Kenyan company to jointly run its dealer network for service and sales, replacing long-time franchisee DT Dobie.
The Honda Motors Co. Ltd established a new motorcycle production plant worth Kes. 450 million (US$4.9 million). The plant's operations began in 12 Nov, 2013 with an initial capacity of 25,000 units per year. The company is keen on establishing a system and capability for global parts sourcing a well as efficient production to deliver high quality products at affordable prices.
The new company's plant in Kenya will be the third Honda establishment in Sub-Sahara Africa following similar projects in South Africa and Nigeria. In terms of production, the establishment will be the second biggest Honda motorcycle production base after the Nigeria plant. The combined production from the Kenya and Nigeria plants will bring the annual production capacity for Honda motorcycles in Africa to 175 000 units.
Toyota Kenya has invested Kes. 500 million (US$5.5 million) in a truck and bus assembly plant complete with a new showroom to improve marketing.
The Japanese auto maker Tuesday launched the assembly with the first Hino truck and bus rolling off the plant in Changamwe.
Speaking at the Associated Vehicles Assemblers (AVA) Mombasa where the vehicles are being assembled, Hino Motors general manager Kazuhiko Wanabe said it expects to produce 40 trucks and buses each month but will increase production to 200 units within a few months of operation. Toyota hopes to sell 1,200 Hino units by 2015.
“Being the largest vehicle assemblers in Kenya, AVA was a natural Hino production partner. Our engineers are especially impressed by the level of expertise of the Kenyan workforce and we hope to continue growing local skills and indigenous industry capacity as our business grows,” said the general manager of the firm owned by Toyota Group.
The Japanese car manufacturer has announced plans to expand its vehicle assembly plant in Kenya.
Toyota Tsusho, in a statement from Tokyo, said a company team would look into the prospects of the multi-million shilling investment billed to significantly transform Kenya’s motor vehicle industry.
“We are keen to build on our investment portfolio in Kenya because of the country’s strategic position as a gateway to the East and Central African regions,” Toyota CEO Jun Karube said.
He spoke yesterday at the Kenya–Japan business forum in Tokyo attended by President Uhuru Kenyatta.
In 2013, Toyota Kenya opened a Sh500 million bus assembly plant in Changamwe, Mombasa, with a capacity to produce up to 200 units a month. This was the first plant of its kind set up by the Toyota subsidiary in Africa.
Speaking at the forum, Japan’s Economy, Trade and Industry Vice-Minister Shigeki Iwai lauded the “robust economic partnership” between Kenya and Japan....
CMC Holdings is set to launch the Ford Mustang sports car in the Kenyan market early next year, targeting the growing demand for high performance cars among rich and middle class motor enthusiasts.
CMC to launch Ford Mustang brand in Kenya
This will be the first time the sports car will be available in a Kenya showroom as a new vehicle.
The brand is expected to step up competition for German car manufacturer Porsche, which reported strong sales of its sporty models since launching operations last year.
“The Mustang will be available at CMC in the first quarter of 2016,” said the regional head of marketing at Ford Motor Company Mark Kaufman in Nairobi on Tuesday.
The Mustang is among five new Ford models that CMC will be launching starting this year, with the dealer racing to boost its product range in the competitive new vehicles market.
The firm, which is now private after it was acquired by Dubai-based Al-Futtaim Group, will also ship in Ford Focus, Fusion and updated versions of Ford Everest and Ranger.
They are part of the 17 new models that Ford has announced it will introduce across Africa in the near term.
Mr Kaufman did not disclose the expected price tag of the Mustang. The manufacturer’s suggested global retail price as per, which excludes local taxes, finance costs and dealer margins, is between Sh2 million and Sh3.8 million.
Late reply on my part but, in Kenya cars are overly priced, until they are manufactured locally or the 74-76% taxes/duties etc are removed 4-5m is relatively good for this car.^^
If 4-5 Mio for a car is "very affordable" or "not that much" man i live in a different world :hmm:
*reconfirming the forum URL
:lol::lol: I could only get 7k buks for my 10 year audi a6. someone paying over 30grand for a 13 year old vehicle is isane!lol.Late reply on my part but, in Kenya cars are overly priced, until they are manufactured locally or the 74-76% taxes/duties etc are removed 4-5m is relatively good for this car.
A new landcruiser goes for 15m, and just managed to sell my 13 year old landcruiser for 3.8 million.