Vehicle assemblers increase production by 50% in the first quarter

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Vehicle assemblers increase production by 50% in the first quarter


Workers at the Isuzu East Africa vehicle assembly plant on the road to Mombasa during a media tour in December 2018. PHOTO | DIANA NGILA | NMG

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summary

  • Data from the Kenya Motor Industry Association (KMI) shows that formal dealers, including Isuzu East Africa, Toyota Kenya and DT Dobie, assembled a total of 1,979 units during the reporting period, up from 1,319 units a year earlier. early.
  • Overall, sales of new vehicles amounted to 2 867 during the period considered, with an increasing share of these being produced locally, mainly by trucks.

The number of locally assembled motor vehicles jumped 50% in the first quarter ended March to account for 69% of all new auto sales.

Data from the Kenya Motor Industry Association (KMI) shows that formal dealers including Isuzu East Africa, Toyota Kenya and DT Dobie assembled a total of 1,979 units during the reporting period, up from 1,319 units a year earlier. early.

Overall, new vehicle sales amounted to 2 867 vehicles during the period considered, with an increasing share of these being manufactured locally, driven by trucks.

Most of the vehicles are assembled at factories such as Isuzu, Kenya Vehicle Manufacturers (KVM) and Associated Vehicle Assemblers (AVA) and are sold in the local market.

A small part of the production is exported to neighboring markets such as Uganda.

Assemblers benefit from a 25 percent import duty exemption on completely disassembled parts (CKD) destined for assembly lines.

The policy aims to stimulate jobs in the manufacturing sector in addition to improving the transfer of skills.

The incentive mainly benefited the utility vehicle segment – pick-ups, buses and trucks purchased by government and businesses.

Most passenger cars are imported completely new or used from overseas due to the lack of local assembly of many models in addition to a preference for cheaper used units.

Local assemblers now produce nearly 20 models including buses, trucks, pick-ups and passenger cars like the Peugeot 3008 (SUV) and 508 (sedan).

Peugeot production and sales figures, however, are not communicated by local franchisee Urysia Limited.

Isuzu, the largest assembler, produced 1,144 of its namesake vehicles during the reporting period, which represents an increase of 49.7% compared to 764 the previous year.

It was followed by Simba Corporation which assembled 377 Mitsubishi, Mahindra and Proton passenger cars and utility vehicles, an increase of 37.5% from 274 a year earlier.

The dealership has assembled seven units of the Malaysian Proton car which it introduced to the market in February this year at prices starting at 1 million shillings.

Proton cars are being assembled at the dealer’s AVA plant in Mombasa.

Toyota Kenya’s assembly production for its namesake and Hino models stood at 313, an increase of 86.3% from 168.

Commercial vehicle assemblers received a boost in 2019 when the government banned imports of used trucks with a load capacity of 3.5 tonnes and above.



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