CFAO Motors has stepped up local assembly operations in a move that will see Toyota Fortuners assembled at the Associated Vehicle Assemblers (AVA) in Mombasa.
To support the venture, the motor dealer says it has invested Sh120 million into AVA for technical upgrades and training.
The inauguration of the plant was overseen by President William Ruto, and it is expected to create direct employment for 100 individuals and indirectly support 500 more jobs.
CFAO Motors aims to enhance its local sourcing of parts through technology transfer and technical expertise.
The automakers’ chairman Dennis Awori, said they plan to assemble at least 350 vehicles in the first year, with a gradual increase in production.
“In our first year we target to assemble 350 vehicles, with plans for a progressive increase in line with the National Automotive Policy and rising market demand,” said Awori.
With the addition of the Fortuner assembly line, CFAO Motors Kenya's locally assembled vehicle portfolio expands, following its recent merger with DT Dobie.
They already assemble the Land Cruiser LC79 series, Hino trucks and buses, Hilux single and double cab pickups and the Toyota Hiace (mini-bus), at AVA Mombasa.
Additionally, they assemble Mercedes-Benz trucks & buses, Hyundai trucks and Volkswagen passenger cars at the Kenya Vehicle Manufacturers assembly plant in Thika.
CFAO Motors Kenya managing director Arvinder Reel expressed optimism about the future growth of the automotive industry, with the expected operationalisation of the National Automotive Policy.
Local assembly of vehicles not only generates more job opportunities and enhances local component manufacturing, but also makes new vehicles more affordable for Kenyans.
Investments, Trade and Industry CS Moses Kuria on Saturday said Kenya will start to locally assemble heavy commercial vehicles by the end of the year.
The number of locally assembled vehicles has risen sharply to a record 75.5 per cent of new automotive sales, a record high from the previous peak of 70.6 per cent witnessed in December 2021.
Kenya Motor Vehicle Industry Association data showed that firms, including Isuzu East Africa and Simba Corporation, assembled 4,174 units out of the total of 5,526 new vehicles sold in the five months to May 2022.
