Kenyans should grace for cheaper Iveco vehicle brands come July 2017
Iveco, the Italian based industrial vehicle manufacturing company, is set to re-enter the Kenyan commercial vehicle market through a partnership with Global Motors Centre (GMC). Global Motors will deal in a wide range of Iveco brands including pick-ups, vans, buses, trucks and prime movers.
The Italian company is also planning to establish a Ksh.2.3 billion manufacturing plant in the coastal city of Mombasa. The company targets to commission the plant by July this year. The plant will ensure that local customers purchase vehicles at cheaper rates than they otherwise would have.
The new assembly plant for Iveco marks increased interest by global automakers in the Kenyan market. This is also good news for the country as an average of 500 individuals will secure employment opportunities once the new plant is operational.
“We are the exclusive franchise holder for Iveco in Kenya and we are about to complete an assembly plant in Mombasa at a cost of Ksh2.3 billion.
The plant will create employment for about 500 to 600 people. This will include technicians and painters among others.”
-Mr Hussein Abadi, Chief Executive, Global Motors
Global Motors Centre (GMC) will be responsible for the assembly and distribution of the brand’s full product range in the region. Some of the brands that GMC will be dealing with include:
- IVECO Eurocargo range
- IVECO Daily Van and Pick up range
- IVECO Trakker Tipper
- IVECO Trakker Prime Mover
Assembly of the Iveco brands locally will lead to relatively lower prices of these car models. For one, they will be exempted from import and excise duty. Import duty currently stands at 25 percent while excise duty is levied at 20 percent of a car’s value. Since Iveco vehicles will be completely knocked down (CKD) vehicle headed for assembly, they stand to benefit from these tax exemptions imposed on fully-built imports.
This is the same approach that Peugeot took when it announced its return into the Kenyan market after close to thirteen years of absence. Peugeot is partnering with Urysia Group to assemble the cars locally. PSA Group is investing Ksh.1.2 billion towards this project and 200 individuals will be offered job opportunities in the firm. The Peugeot 508 model will be the first vehicle to be assembled with a projected roll out date of June 2017.
We should not forget that back in January this year, Indian vehicle manufacture, Ashok Leyland, declared its intention to set up a vehicle assembly plant in Kenya. This revelations were made by the Industrialisation Cabinet Secretary, Adan Mohamed, via his official Twitter handle.
Ashok Leyland is planning to establish an assembly plant in Kenya following engagement with their leaders in India. pic.twitter.com/65UNxxhre1
— CS Adan Mohamed (@AdanMohamedCS) January 16, 2017