Page 22 - ITA Journal 3-2018

Market information
vehicles per year and presently assembles 60 % trucks and 40 % buses from completely knocked down (CKD) kits. Toyota is assem- bled by the company Associated Vehicle Assemblers (AVA) located in Mombasa. The plant assembles buses and trucks in CKD for brands also including Mitsubishi, Scania and Renault.
Kenya vehicle Manufactur- ers (KVM) is the third Kenyan plant. Located near Nairobi, the company assembles commercial and passenger vehicles with both completely knocked down and semi knocked down (SKD) kits for different automotive OEMs. In addition to Moebius Motors, the rst Kenyan vehicle brand, these include MAN, VW, Ashok Leyland and Mercedes Benz. The famous VW polo is the most recent model to join the assembly line. Many of KVMs European partners only recently started or announced their partnership to assemble vehicles locally. Over the medium to long term, this might increase the so far limited exposure of European brands in Kenya.
Overall, there is no doubt the local assembly industry is still in its infancy with a total output of approximately 10,000 units per year – a fraction of some single plants in Europe or Asia. Never- theless, the local plants might well be the rst steps for the region to become a major emerg- ing automotive market. They also show that Kenya – and East Africa – is an attractive market for the automotive industry. Over time, growing assembly volumes will additionally attract invest- ment into the local production of parts and components, which will further push up demand for steel.
ITAtube Journal No3/October 2018
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