Volkswagen (VW) launched its operations in Rwanda last month at the Kigali Special Economic Zone where the first assembly plant will be located.
The VW Rwandan operations will offer the country’s market an integrated mobility solution, the first of its kind in the automotive industry. The mobility solution will include a retail outlet, an on-site assembly facility, a complete suite of mobility services accessible from a locally designed app, and a training centre.
Opportunities for VW in the Rwandan Market
According to the Rwanda Revenue Authority, Rwandese import between 7,000 and 9,000 used cars annually as of 2017. These cars usually lack guarantees and dealership servicing
Therefore, VW hopes to tap into this market opportunity by producing new cars with provisions such as servicing and guarantees and eventually replace used car imports completely.
VW will also provide affordable cars through the sale of used cars under the mobility solution for nearly two years.
The VW operations
The VW operations will create up to 1,000 jobs and assemble a maximum of 5,000 cars annually. Additionally, Rwandese will have access to three models namely Hatchback Polo, Passat, and utility sports vehicle the Teramont.
Officials from Volkswagen Group South Africa earlier said they would make a first investment of $20 million in the Rwanda operations.
VW Rwanda will be headed by Michaella Rugwizangoga who was appointed in March. The chief executive has a background in chemical engineering.