Caetano, the local franchise holder for Hyundai and Renault automobiles, intends to begin assembling the vehicles in the nation in May, becoming the most recent dealer to take advantage of tax breaks in the automotive industry.
The corporation stated that it is in discussions with a local assembly factory but did not name the partner. Kenya Vehicle Manufacturers in Thika and Associated Vehicle Assemblers in Mombasa are the two local multi-brand vehicle assemblers.
"We want to hold a local assembly to comply with the government's directive. We're waiting for an official licence from the Ministry of Industrialisation, which should arrive in May, and then we'll start assembly in two to three weeks," said Pedro Campos, managing director of Caetano's Kenya company.
Passenger car assemblers are now free from the 25% import charge and might soon be exempt from the 16% VAT and 20% excise duty if the Treasury's plans become law.
Cars made in other countries are subject to import duty, excise duty, and VAT, which must be paid in that order.
Ghabbour Auto (GB Auto), Egypt's publicly traded auto dealer, has also announced plans to establish a joint venture in Kenya to assemble and distribute passenger vehicles.
The firm produces, assembles, imports, and sells automobiles for Hyundai, Bajaj, Mitsubishi, and Volvo.
Caetano is considering local assembly to shorten delivery times and lower brand pricing in order to grow its market share.
Mr Campos stated that prices for Hyundai and Renault brands, which have stayed steady in the country, are anticipated to grow by more than 15% in the second half.
"The price of the imported automobiles will be determined by logistics, but our main focus has been client delivery time," he added.
According to Kenya Motor Industry Association data, the business sold 26 Hyundai cars in the quarter ending March 2022. (KMI).
The tax breaks are intended to broaden the range of passenger vehicles produced domestically. Proton and Volkswagen are two of the vehicle manufacturers assembled at Kenyan factories.
Posted on : 03 Oct,2023 | News Source : adqz.co
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