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Toyota Kenya Commissions Hiace Assembly Line Associated Vehicle Assemblers In Mombasa

Toyota Kenya Commissions Hiace Assembly Line Associated Vehicle Assemblers In Mombasa Featured

Leading automotive company Toyota Kenya adds to their assembly lines with the Hiace CKD line at the Associated Vehicle Assemblers Mombasa.

The Automotive sector aims to grow its share of the GDP from 9.2 percent to 15 percent by 2022, in line with the ''Buy Kenya Build Kenya'' policy.

"The Hiace CKD assembly line is very instrumental as it demonstrates our commitment to growing the automotive sector and increasing assembled models from 4-10." Said Mr. Arvinder Reel, Toyota Kenya Managing Director.

Adding " Over time, the local assembly will provide opportunities for the localization of components used in the assembly of vehicles. This will further develop the local content supply chain through the manufacturing of local parts. In addition, it will offer technology transfer and skills upgrade for local technical staff in line with Toyota best practices."

The addition of the Hiace assembly line at AVA further entrenches Toyota Kenya’s commitment to supporting the growth of the manufacturing sector, one of the key pillars under the National Government’s Big Four Agenda.

The auto industry firm already assembles 200 Hino trucks, 1,200 Hilux pick-ups, and 700 Land Cruiser pick-ups (currently used by the National Police Service and the Tour operators) annually.

Apart from assembling locally, Toyota Kenya has a network of over 31 authorized dealers and service centers across the country that ensure consumer vehicles get genuine spare parts and professional aftersales service for their vehicles.

To ensure consumers can drive brand new vehicles with ease the company has partnered with credible financial institutions to offer upto 95% for the Hiace.

By having the National Automotive Policy in place, the cost of brand-new vehicles will significantly go down. This will give many Kenyans an opportunity to own new vehicles. In addition, it will create more jobs through the increased local component manufacturing to support the assembly plants.

Speaking during the event held in Miritini, Industrialazation cabinet secretary Betty Maina lauded the company for coming up with the new assembly line saying the government is ready top support automobile manufacturers in the country.

"We therefore welcome Toyota Kenya’s decision to set up this assembly line, which comes two years after the introduction of the Hilux assembly line. We extend our full support to Toyota Kenya and automobile manufacturers in the country as we work towards driving Kenya into a fully industrialized economy." said CS Betty.

In July 2020, the Ministry issued the “Preferential Procurement Master Roll No. 1 of 2020” comprising 334 products locally made and Preferential Procurement Master Roll No.2 in August 2021 comprising 334 products locally made.

The Master Roll has automotive accessories included in the list of products. The procurement Master list was developed together with the private sector with a view of giving local manufacturers priority by Government Agencies during procurement.

The CS further challenged the industry players to take advantage of the government's goodwill and policies to ensure they fully invest in local manufacturing.

She noted "Besides, the Government is always willing to discuss and prioritize necessary support and incentives to enhance local industry competitiveness. But the industry is expected to reciprocate by investing in full automotive manufacturing; form joint ventures, train, and capacity build local SMEs to promote local content."

 

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