Simba Corp is assembling the Mahindra single and double cabin pick-ups in Kenya for the first time in its history.
The assembly, at Associated Vehicle Assembly (AVA) comes at a strategic time when the government is working on implementing its National Automotive Policy, which is expected to boost local assembly and discourage importation of used cars.
The first dozen of the locally assembled pick-ups are in the final stages of assembly at the AVA plant in Mombasa.
Mahindra’s local franchise holder Simba Corporation is keen on delivering the product to the market to increase consumer access in a bid to defend and gain market share in the increasingly competitive commercial pick-up vehicle segment. Mahindra has been selling commercial pick-ups and passenger cars in Kenya since 2012 via Simba Corporation Ltd.
Dinesh Kotecha, the Group Chief Executive Officer of Simba Corp said: “We are confident that Mahindra will solidify its presence in the Kenyan market with the local assembly of pick-ups.
“With the government increasingly creating favourable conditions for assemblers, motor vehicle dealers’ preference for local assembly is expected to grow leading to job creation, growth of skills and ultimately spur economic growth.
Dealers assembling vehicles locally are exempted from the 25 per cent import duty levied on fully-built imported vehicles, an incentive that gives room for assemblers to produce cheaper vehicles.