M a r k e t N e w s

Portugal Auto Firm Eyes Kenyan Base for Cheap Cars Factory

Posted on : Friday , 31st July 2020

Portugal-based auto-dealer is in conversation with a Kenyan assembler to initiate local production of low-cost Hyundai and Renault brands for sale across East Africa.

Salvador Caetano Group said, it is in discussion with unnamed local assembler as it wants to enjoy the tax benefit that comes with assembling cars in Kenya.Kenya Vehicle Manufacturer and Associated Vehicle Assemblers have been assembling locally for top brands like Mitsubishi, Scania, Tata Hino, Volkswagen and Toyota.

Caetano Kenya managing director Ezio Tuniz said the assembly of the two brands would ride on its recently introduced Sh350 million Kenya subsidiary on Mombasa Road in Nairobi that includes a showroom and an aftersales service bay.

“We are alive to the government’s policy that speeds up local assembly and collaborations with small and medium enterprises. We are examining the situation and will disclose our planned assembly plant investments in due course,” he said.

“Kenyans buy used family vehicles in big numbers due to their low pricing and we have done our evaluation that will inform the low-cost vehicles that we will gather locally.”

As a rule, Kenya exempts local vehicle assemblers from the 25 % import duty levied on fully-built imported vehicles. The incentive gives assemblers room to produce cheaper cars locally.

Kenya undermined what was once a thriving local assembly industry in the 1990s with policies that encouraged cheap second-hand imports. It is now looking to attract manufacturers back to help create jobs and support growth.
 

French carmaker Peugeot and Germany’s Volkswagen recently resumed car assembly locally, joining other brands based in Kenya including Toyota, Nissan and Mitsubishi.

Source : www.autoer.com
Featured Companies
  • /
  • African Business Development Association
  • /
  • TITAN Containers A/S
  • Mercury Tube Products
  • SMES Today Magazine
  • DOOREE INTERNATIONAL CO LTD
  • africabusiness.com
  • Your Banner HERE!

Complete List  

Advertisers in previous issue:

  • Our products are widely used in industries of metallurgy, nonferrous metals, machinery, construction materials, petrochemicals, pharmacy, fertilizer and chemistry.
  • Africa Plant & Equipment magazine offers a unique advertising opportunity to both buyers and sellers of earthmoving equipment, trucks, cranes etc.
  • South African incinerator and cremator designer and manufacturer making significant inroads into overseas markets.
  •  We offer small and medium size passenger boats for the water transport industry. Our boats are equally popular among the small water taxi owners and the big corporations.
  • JINGZHOU JINGFU AUTO PARTS CO.,LTD , a Taiwan & Hubei joint venture, is focusing on manufacturing and supplying professional suspension parts.
  • White Horse Ceramic Industries is always the leader in quality, style, pattern and function in order to meet the demand for design and decoration of our customers.
  • SIDC Ceramic Plant is a state of the art blend of European technology and expertise.
  • TradeDirectory.com is a global business-to-business marketplace providing absolutely free of charge B2B directory, trade leads and consultancy services to manufacturers, wholesalers, suppliers, buyers, importers and exporters.
  • Our products are widely used and serviced for passenger car,truck,tractor,agricultural & earthmoving machines,stationary & marine engine.
  • Roadside Products Pty Ltd is the manufacturer and distributor of Dura-Post Guide and Marker Post Systems.
  • MATRADE
Afrotrade International Marketing, Tel: +971-50-6285684
© 1998-2020 Afrotrade