Mahindra starts local pick-ups assembly line

Simba Corporation has begun assembling the Mahindra pick-ups locally as it takes advantage of tax incentives that will see it reduce buyer price in the increasingly competitive segment.

The recently started assembly at Associated Vehicle Assembly (AVA) marks a new chapter for the Indian automaker, coming at a time when the government is working on implementing its National Automotive Policy.

It is expected to boost local assembly of motor vehicles, discourage importation of used cars and fully built new vehicles.

The first dozen of the single and double cabin pick-ups are in the final stages of assembly at the AVA plant in Mombasa and is expected to be officially unveiled soon.

Simba Corporation Group Chief Executive Officer Dinesh Kotecha said the firm aims at using the high value product to the market to increase consumer access and gain market share in the increasingly competitive commercial pick-up vehicle segment.

“We are confident that Mahindra will solidify its presence in the Kenyan market with the local assembly of pick-ups,” he said.

“The locally assembled pick-up will enable small and medium sizex enterprise owners to access an affordable, high quality vehicle that provides real value for money,” Mr Kotecha said.

Mahindra has been selling commercial pick-ups and passenger cars in Kenya since 2012 through Simba Corporation.

Local assembly is expected to grow with the government effort in creating favourable conditions for assemblers with jobs and skills expected to be the resulting benefits.

Dealers assembling vehicles locally are exempted from the 25 percent import duty levied on fully-built imported vehicles, an incentive that gives room for assemblers to produce cheaper vehicles and at the same time create a local value chain benefiting economic growth in the country.

Mahindra pick-up now adds to Simba’s list of locally assembled vehicles including various models of trucks and buses at its AVA plant in Mombasa.