Industrial Vehicles Corporation (Iveco) which is an Italian industrial vehicle manufacturing company based in Turin, Italy, and entirely controlled by CNH Industrial Group is targeting to construct a US$ 22m assembly plant in Kenya in the Coastal city of Mombasa
This initiative will enable the company produce the Italian automaker’s range of commercial vehicle brands and enhance their growth in Africa.
The Chief Executive of Global Motors, Mr. Hussein Abadi confirmed the reports and said that they are the new local distributor of Iveco.
“We are the exclusive franchise holder for Iveco in Kenya and we are about to complete an assembly plant in Mombasa at a cost of US$ 22m.
Global Motors is expected to deal in a wide range of Iveco brands, including pick-ups, vans, buses, trucks and prime movers.
According to data from Kenya Motor Industry Association (KMI); Pick-ups, vans, buses and trucks accounted for more than 75 per cent of total annual new vehicle sales.
The return of Iveco reveals that there is an increased competition among formal dealers who are more and more focusing on the commercial vehicles segment that has emerged as the fastest-selling and most lucrative in the region.
The construction of the new assembly plant will lead to the creation of close to 500 jobs especially for the locals.
The plant will be commissioned in June this year.
Local assemblers benefit from the 25 per cent import duty waiver on imports of completely knocked down (CKD) parts, giving them a price advantage over imports of fully-built vehicles.