Isuzu East Africa is considering setting up a vehicle assembly plant in Tanzania
Posted on : Friday, 6th September 2024
The Japanese heavy commercial vehicle giant Isuzu Motor may soon open an assembly factory in the nation if the current demand is maintained. This would be in addition to the ongoing East African Community initiative to support the automotive sector in the area.
According to Sandra Njagi, Head of Corporate Planning and Strategy at Isuzu East Africa, Tanzania's automotive industry produces roughly 95,000 vehicles a year, including cars, light and medium trucks, buses, pickup trucks, and sport utility vehicles.
"However, the industry is dominated by used vehicle imports from Asia and Europe, accounting for 94% of all vehicle sales in Tanzania," the speaker added, adding that the increased affordability of new automobiles will help counter the impact of locally produced cars.
Sandra believes that the industry has enormous potential because of Tanzania's geographic breadth, the country's growth trajectory, and significant projects aimed at expanding national and regional infrastructure.
Speaking at the recently convened roundtable in Arusha City, she was joined by representatives from the East African Community (EAC) Secretariat and chief executive officers from the East African Business Council.
In light of its population, geographic size, and economic activity, the East African area, according to EAC Secretary General Veronicah Nduva, still has a lot of opportunity for investments in the automotive sector.
SG Nduva noted that the expansion of the automobile industry in the region has been included in the budget for the EAC fiscal year 2024–2025.
Conversely, as of December 2023, Isuzu East Africa holds the top spot in the East Africa automotive assembly sector, having assembled over 6,000 vehicles annually and holding a 45 percent market share.
Through its authorized dealer, Al Mansour Tanzania, which operates a cutting-edge sales, service, and spare parts facility along Nyerere Road in Kipawa, Isuzu conducts business in Tanzania.
Additionally, Al Mansour Tanzania has 15 approved service facilities spread throughout the nation's major towns, ensuring comprehensive touch points and an extensive aftersales footprint.
Isuzu's extensive product line of light and medium commercial trucks, buses, pickup trucks, and sports utility vehicles (Isuzu mu-X) are available in Tanzania.
During the Roundtable meeting in Arusha for the East African Business Council, Chief Executive Officers, and East African Community Secretary General, Isuzu put two of their trucks on display.
According to reports, the vehicles were made to endure East African road conditions, weather, and transportation demand.
