Peugeot starts assembly of its cars at Thika Factory

spear

Village Sponsor
#1
Peugeot starts assembly of cars at Thika factory
TUESDAY SEPTEMBER 26 2017

Urysia’s managing director Claude Mwende. PHOTO | FILE

In Summary
  • Peugeot, which has partnered with its local franchise holder Urysia in the assembly of the 508 and 3008 passenger car models, had announced the plan earlier but did not say which of the local assemblers it would use.
  • KVM and Mombasa-based Associated Vehicle Assemblers (AVA) are the only facilities that offer contract production, with Isuzu East Africa running a facility exclusively for its brand of commercial vehicles.
  • Peugeot’s move to start local assembly signals the multinational’s increased confidence.

By VICTOR JUMA
More by this Author
French automaker Peugeot S.A. has started local assembly of its brands at Thika-based Kenya Vehicle Manufacturers (KVM), becoming the latest multinational to produce vehicles at the plant. Peugeot, which has partnered with its local franchise holder Urysia in the assembly of the 508 and 3008 passenger car models, had announced the plan earlier but did not say which of the local assemblers it would use. Urysia’s managing director Claude Mwende did not respond to our request for comment on this story by the time of going to press.

“KVM started assembling Peugeot cars last week,” said a source familiar with the multinational’s activities in Kenya.

The 508 is a sedan while the 3008 is a small SUV that was named Car of the Year 2017 in March in Geneva by a judging panel comprising 58 European journalists. Both models are expected to be priced above Sh4 million. KVM and Mombasa-based Associated Vehicle Assemblers (AVA) are the only facilities that offer contract production, with Isuzu East Africa running a facility exclusively for its brand of commercial vehicles. President Uhuru Kenyatta was scheduled to launch Peugeot’s assembly at KVM but his diary has been busy with campaigns for the repeat presidential election, our source said. Mr Kenyatta last year launched the assembly of the Volkswagen Polo Vivo car at the same facility by DT Dobie — the local partner of Wolfsburg-based Volkswagen Group.

Urysia has been importing fully-built models including ambulances, utility and passenger cars but this is expected to change with the commencement of local assembly. Peugeot’s move to start local assembly signals the multinational’s increased confidence, with demand for its range of vehicles rising in the local and regional market.
Increased interest by global automakers in Kenyan assembly is set to benefit the economy through creation of new jobs, transfer of skills and technology besides lowering the price of new vehicles. Completely knocked down (CKD) vehicles headed for assembly plants are exempt from import duty (at 25 per cent) and excise tax (20 per cent of a vehicle’s value) that are levied on fully-built imports.

http://www.nation.co.ke/business/Pe...t-Thika-factory/996-4112296-ulcnuk/index.html

Peugeot 508
images.jpg
Peugeot 3008
images (6).jpg
 
Last edited:

spear

Village Sponsor
#9
@Meria Mata Fanya upekuzi utuletee jibu
I maybe wrong but it has been sold to Simba corp


Simba Corp to acquire full control of vehicle assembler
MONDAY, SEPTEMBER 4, 2017 9:39
BY MUTHOKI MUMOBY VICTOR JUMA


Simba Corporation is set to take full ownership of Mombasa-based Associated Vehicle Assemblers (AVA) after it received regulatory approval to acquire the stake held by Marshalls East Africa.

The AVA is currently owned on a 50/50 basis by Simba and Marshalls. In a press statement, Competition Authority of Kenya (CAK) said it had granted Simba conditional approval to “acquire control” of the vehicle assembly firm.

“We are buying the 50 per cent stake we don’t already own from Marshalls East Africa… They (Marshalls) are currently not active in the automotive business so we decided to take over the whole thing,” Simba’s chief executive Adil Popat told the Business Daily.

The AVA is one of two firms that offer motor vehicle assembly services on a contract basis. Current clients include Toyota Kenya and dealers of Scania and Tata brands.

Volvo Trucks has also indicated plans to set up a Sh2.5 billion production line at AVA next year.

Existing contracts

The approval from the regulator has come with conditions with the regulator ordering Simba to keep AVA open to other companies and to honour all existing contracts.

“The conditional approval was informed by the fact that the transaction would likely raise competition concerns in market for the assembly of commercial motor vehicles… based on this the authority cushioned the third party brands and any other competing brand from being locked out of the plant as long as capacity exists,” said the CAK.

Mr Popat said that although Simba has not finalised a strategic plan for AVA, the intention is to bring in more clients to assemble their vehicles at the plant.

Deep trouble

Simba intends to make additional investments to improve the facility. Ceding control of AVA to Simba may come as a relief for Marshalls, a company that has sunk into deep trouble over the last few years culminating in its delisting from the Nairobi Securities Exchange (NSE). Local vehicle manufacturing is becoming increasingly vibrant as more international firms seek to take advantage of government incentives, including tax exemptions, encouraging local assembly.
 
Last edited:

Top