Vehicle assemblers want policies to ensure drop in production cost

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Commercial vehicle assemblers are calling for adoption of policies that will ensure a drop in production cost to effectively compete with the second hand imports.

Automotive Manufacturers chairman Ashit Shah says they have initiated talks with Trade Ministry in an effort to increase commercial vehicle production in the country.

With the age limit for imported second-hand cars set to drop from eight to five years starting July, this year local vehicle assemblers have welcomed the move proposing a total ban of second hand commercial vehicles into the country.

The automotive manufacturers chairman Ashit Shah says local assemblers have the required capacity to produce commercial vehicles to meet the local demand.

Commercial vehicles sales rose 17.46 % between 2016 and 2017 to stand at 9,632 units.

Shah adds that the assemblers have agreed to increase production of the commercial vehicles in a bid to lower the costs of the vehicles with the assemblers holding talks with the government to come up with policies that will guide and streamline the automotive industry.

Speaking during the unveiling of a start of the art show room by Chinese  stated owned FAW and Transafrica motors limited in Nairobi, local assemblers were urged to form partnerships with international brands to produce quality vehicles for both local market and regional markets.

The art room is part of the Transafrica motors expansion plan as it seeks to produce 2000 units of heavy commercial tracks every year.

SOURCE: kbc.co.ke

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