M a r k e t N e w s

Automobile Companies paving way to big business in East Africa

Posted on : Saturday , 7th November 2015

 Muscling its way into the market is China’s Beiqi Foton Motor, which last year delivered over 10,000 vehicles to Africa and in March established a sales division in Kenya. It is busy finishing construction of a US$50-million assembly plant in Nairobi that it claims will have capacity for delivering 10,000 vehicles a year to the region.

Foton designs and manufactures trucks, buses, tippers, prime movers, and pick-ups. It has started customising its vehicles for the African market, installing bigger engines and oil tanks knowing that the majority of its buyers need to travel long distances.
By assembling vehicles in Foton will avoid a 25 percent import duty. India’s Tata Motors is said to also be investigating a local assembly plant with an eye to avoiding this tax.
Demand for heavy commercial vehicles and pickups is on the increase in EA, fuelled by steady growth in agriculture, transportation, construction and telecoms as well as the fact that entrepreneurs and small businesses are increasingly eschewing used vehicles in favour of buying new. Caroline Wamai, a DT Dobie Kenya manager, says “Cargo transport business has been booming partly due to a railway system that is inefficient and clogged.”
Toyota, Simba Colt Motors and General Motors (GM) East Africa are the three giants fighting for dominance in the pickup truck market. The Kenya Motor Industry Association (KMI) reports that 2,873 one-ton pickups were sold in December 2013 versus 2,729 in December 2012, which makes for a 5.3 percent increase in sales.
In terms of most popular models, Joseph Njenga, MD of Nairobi-based Vas Auto Garages, says, “We are seeing Toyota models as the most popular in the market, followed by the Nissan pickups. Other models such as the Ford Ranger have been struggling to gain a foothold in this fiercely competitive segment.” Toyota has long been a top player in East Africa (EA), and last year announced the building of a Kenya-based assembly plant to increase its role in the regional market.
A new entrant into the Kenyan market, and one that is setting tongues wagging, is Scania East Africa Ltd, a subsidiary of Scania CV Sweden. Scania sells primarily cargo trucks and standard and luxury buses.
Also fighting for a portion of the bus market is GM, which last year injected over US$2 million into a plant renovation, a project that included the construction of a new bus technology centre.

Source : www.blog.kpmgafrica.com
Featured Companies
  • Bajaj Auto
  • Nissens A/S
  • Bajaj Auto
  • Tire Group International, LLC.
  • dubaiexporters.com
  • Steelmate - Think safety think Steelmate

Complete List  

Advertisers in previous issue:

  • Our products are widely used and serviced for passenger car,truck,tractor,agricultural & earthmoving machines,stationary & marine engine.
  • Cylinder heads
  • Wheel bearing / Hub units,Water pump bearings,Deep grove ball bearings;Strut bearings;Heavy duty truck tapers;Tensioner bearings
  • Global Auto Parts is an Automotive Aftermarket spare parts wholesaler offering genuine quality aftermarket replacement parts for all makes and models of passenger cars, light commercials vehicles, trucks and trailers.
  • Range,Service,Quality.
  • Lanfeng machine Co., LTD is a collection of R&D, production and sales of Fuel dispenser and LPG dispenser, gas station equipment of large enterprises in China.
  • Rolman World is one of the largest and most established distributors of bearings and related technical services in the Middle East and Africa.
  • Dealers of Honda,Yamaha,Suzuki.
  • Zhenjiang Huixiang Light&Electrical Co.,Ltd.), which located in Zhenjiang, Jiangsu Province of China, specialize in producing auto&motorcycle bulbs.
  • GUANGZHOU YIFENG AUTO PARTS MANUFACTURING CO., LTD. is a professional manufacturer and distributor of automotive filters, mainly specializing in all kinds of oil filters, fuel filters and air filters.
  • Yellow stone diesel-One of the leading manufacturers of engine parts.
  • Fowlers Parts supply genuine original spare parts
  • FM Filter Monza can respond to this need with a wide range of ready or customized filters, manufactured using different technological solutions.
  • It is the largest manufacturer of Premium Quality Lipe brand clutches for the commercial vehicles in India.
  • JNBK Corporation is a trusted leading manufacturer for top quality brakes with a widest range of products covering main applications for Japan, Europe & Americas.
  • Pro Media is established by a group of advertising sales people who have had over 25 years of experience in Taiwan’s two-wheeled industry.
  • Gear Gremlin is a completely new collection of indispensable accessories for motorcyclists, covering everything from a valve dust cap to a chain breaker and riveting kit.
  • Kenya
  • Tyre makers.
  • Our corporation is an important motorcycle production base in southern China.
  • Best Choice International Trade is one of the leading tyre exporter in China, and a major supplier of tyres and engines in Beijing Municipality.
  • Steelmate - The world leading manufacturer in mobile electronics industry
  • Boston Garage Equipment Ltd is a leading suppliers of a superb range of vehicle workshop equipment.
  • Al Maroof Trading Company is one of the leading Auto Parts Dealers based in UAE and Pakistan.
  • Trade Exhibition
Afrotrade International Marketing, Tel: +971-50-6285684
© 1998-2020 Afrotrade