Simba Corporation is set to assemble Malaysian car brand Proton in Kenya starting November, aiming to attract price-sensitive middle-class buyers with prices as low as Sh1 million inclusive of taxes.
This will expand the list of passenger cars assembled in the local market, joining Volkswagen Polo Vivo (by DT Dobie) and Peugeot (Urysia).
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Assemblers are increasingly taking advantage of tax incentives offered to firms producing locally.
Imports of fully-built vehicles are charged an import duty of 25 percent while completely knocked down (CKD) parts headed to assembly plants are exempt from this tax.
Simba’s chief executive Dinesh Kotecha told Business Daily that the company has signed an agreement with Proton Holdings and the first shipment of the car parts has already departed for Kenya.
“We will start assembling the Proton cars at our plant AVA (Associated Vehicle Assemblers) in November,” Mr Kotecha said.
“We are targeting people who would have bought used cars. The prices will start from Sh1 million inclusive of taxes,” he said.
Simba plans to sell about 5,000 units of the cars each year.
Proton manufactures several car models including sedans, hatchbacks and SUVs.
Source: BD Africa
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