South Korean motor vehicle manufacturer Hyundai has set up an assembly plant in neighboring Ethiopia. It is Hyundai’s first plant in the East African region.
Mr. Haile Gebraselassie, one of the business partners in the assembling venture said that the plant will produce passenger hatchbacks and trucks. The company expects to roll out 10,000 vehicles annually.
Hyundai hopes to attract car buyers by offering affordable alternatives to the highly priced imported vehicles. The company plans to sell its cars in Ethiopia and in neighboring Kenya, Sudan, Somalia, Eritrea, and Djibouti.
Kenya recently revised the age limit for second hand car imports to five years from the earlier limit of eight year. The move aims to reduce the purchase of second hand cars in Kenya.
The assembly plant in Ethiopia will boost the number of affordable cars available to Kenyan buyers as the assembly plants in Kenya are not able to meet demand for vehicles in the country.