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A quick look at the motor vehicle industry in Kenya

04 Jul

mobiusThinking of buying a new or newish car? Thinking of sending money home from abroad to help a loved on purchase a car or one on your behalf? The motor vehicle industry in Kenya is primarily involved in the retail and distribution of motor vehicles. There are a number of motor vehicle dealers operating in the country, with the most established being Toyota (East Africa), Cooper Motor Corporation, General Motors, Simba Colt and DT Dobie. There are also three vehicle assembly plants in the country, which concentrate on the assembly of pick-ups and heavy commercial vehicles. This means that in the sedan and saloon divisions rely heavily on car imports. One can import the vehicle new through a dealership or import second hand vehicles mainly from Japan and Dubai. These imports make up 70% of the market. Why do people choose these “ex Japs”? Firstly while the economy in East Africa is on the boom, the GDP still remains low for the majority and buying locally assembled or new imports is just out of the question for many. A quick browse on these second hand Japanese traders websites one can see that the prices there are affordable to people, you can even get a Toyota corrolla for the price of one locally assembled one. It makes sense to buy two instead of one vehicle and be the proud owner of multiple vehicles. Its not only in Eastern Africa that these second hand Japanese vehicles are proving to be popular, Southern Africa and New Zealand have been noted as other top destinations.

However efforts by car manufacturing firms like Mobius should be supported. Mobius Motor designs and manufactures vehicles for the African market utilising at least 35% of locally produced components to make up the vehicle. The vehicle is an essentially local production which is affordable and those who want to purchase vehicles may try have a look at this vehicle. There are many benefits, the more uptake of their vehicles the more funds they will have to develop further their products and a general boost for the Kenyan Economy. Remittances coming to Kenya through remittance companies like mukuru.com should partner local firms like Mobius to promote their services as well as promote Mobius into an African motoring giant. A concerted effort to buy Kenyan in particular and African in general will go a long way to sustain our economies.

 
 

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