Toyota Kenya Opens Hiace Model Assembly Line

Toyota Kenya has set up a Toyota Hiace assembly line of 16-seater vans at the associated vehicle Assembling (AVA), to capitalise on the rising consumer demand for passenger vehicles.

Industrialisation CS Betty Maina at the Associated Vehicle Assemblers Mombasa where Toyota Kenya opened its assembly line for the Hiace CKD model.

Toyota Kenya has set up a Toyota Hiace assembly line at the associated vehicle Assembling (AVA), to capitalise on the rising consumer demand for passenger vehicles.

Toyota Kenya Chief Operating Officer, Joshua Anya, said the local assembly plant in Miritini targets to produce about 500 units annually as it seeks to expand its market share in public transport.

The cost for one unit will range between KSh4 million and KSh4.5 Million significantly addressing the deficit in the local market. Anya noted that the new assembly line will create about 1,500 jobs within Mombasa County.

“This demonstrates our commitment to grow the automotive sector and increase locally assembled units from the current of 7,725 vehicles in 2020 compared to the 1980s, where the industry was producing over 13,000 vehicles per year. This is according to the 2021 Economic Survey,” said Anya.

Kenya’s automotive sector aims to grow its share of the GDP from 9.2 per cent to 15 per cent by 2022, in line with the ”Buy Kenya Build Kenya” policy.

Trade and Industrialisation Cabinet secretary Betty Maina said the sector has the capacity to produce over 34,000 vehicles per annum to meet the local vehicle demand.

The Trade Minister said the government was committed to creating an enabling environment to promote trade for local and international investors.

Currently, the government has introduced several policy measures to ensure that the motor industry in Kenya operates in a favourable environment aimed at expanding the sector.

“We want to see more of the spare parts produced locally so that you don’t have to import everything because we have the capacity and human resources,” added Maina.

“The government decided to buy locally assembled vehicles in order to promote home-grown manufacturing,” said the CS.

Industrialisation CS Betty Maina at the Associated Vehicle Assemblers Mombasa where Toyota Kenya opened its assembly line for the Hiace CKD model.