Business Plans

Hyundai opens an Assembly Plant in Ethiopia

The South Korea-based Hyundai Motor Co. has set up a 10,000 vehicle-per-year assembly plant in Addis Ababa, Ethiopia. The plant was officially opened on Thursday, making it the company’s first plant in the East African market.

The popularity of Second-Hand vehicles in East Africa

Though as a country, Ethiopia has one of the lowest car ownership rates in the world; two cars per every 1,000 people according to a Deloitte 2014 report. The country sits in a region where second-hand cars are popular.

Ethiopia’s neighbors like Kenya, Uganda, and Tanzania have mostly second-hand vehicles on their roads. Hyundai is betting on locally assembled cars being affordable than imported fully-assembled vehicles, and that will attract users from the second-hand market. Since the locally assembled cars would be affordable.

Importing fully assembled cars typically attract high taxes making it a privilege of the affluent in the society. The rest have to make do with imported second-hand cars, Hyundai is targetting this market by giving them a new first-hand car at affordable prices.

Hyundai has partnered with former Olympian winner turned businessman Haile Gebrselassie. The former athlete during a press briefing said the plant will be assembling passenger hatchback cars and trucks. Though there will be a certain percentage of cars rolling out of the plant that will be imported.

This plant is big enough (to assemble) for Kenya, Ethiopia, Somalia, Djibouti, Eritrea, and Sudan,” said Gebrselassie.

Volkswagen announces plans to set up Assembly Plant in Ethiopia

Already, Ethiopia produces about 10,000 vehicles, which also includes commercial cars. Stats show that in 2017, the country imported 40,000 cars. There are already some Chinese brands like FAW, Geely, and BYD in the country.

According to Hyundai CEO Won Hee Lee, the company was drawn to Ethiopia because of the country’s growth. Ethiopia is among the fastest growing economy in Africa for about a decade now.

We have good opportunities in Ethiopia. We believe the economic growth in Ethiopia will be faster than any other country in middle Africa,”

said Hee Lee during the Hyundai assembly plant inauguration ceremony.

Foton To Start Assembling Vehicles At Its $11.4M Assembly Plant Set Up In Kenya

France Carmaker Peugeot to start Assembling Cars in Kenya

Volvo is setting up a $24.2 million Truck Assembly Plant in the Kenya port city Mombasa

Milicent Atieno

Proud Kenyan Citizen, loving everything Tech related.

Recent Posts

6 Steps That Will Take You Closer to Your Dream Job

If you know what your dream job is, you’re already closer to it than most…

4 hours ago

Tips for Managing a Contact Center Efficiently

Image: The management of a contact center is by no means easy. In reality,…

4 hours ago

Top 7 Crypto Robots and Why They’re The Best

The crypto market has gotten transformed by the best technological solutions that emerged at the…

12 hours ago

An Analysis of CCIE-EI LAB Exam Topology

The overall architecture of CCIE-EI LAB exam topology. Data centre section of CCIE-EI LAB exam…

12 hours ago

UFOD in Drug Addiction Treatment

Ultra-fast opioid detoxification has been successfully used in narcology and toxicology for over 60 years.…

12 hours ago

7 Tips for Choosing a Small Business Loan worth Their Weight in Gold

Starting a small business takes startup money and working capital. Keeping a small business in…

23 hours ago