Truck Demand Increases in East Africa Owing to Construction Boost
Published On Apr 08, 2016
On the back of increasing construction and infrastructure projects in Kenya, leading truck maker General Motors (GM) is planning to pump up its production capacity for trucks. The company is said to invest a whooping sum of US $7.9 million in 2016 on revamping its Narobi manufacturing plant. The company produces trucks with GVW range of 3.5 to 15 tonnes at the plant and holds a big share of the market under its belt.
Talking about the developments, Rita Kavashe, Managing Director, GM East Africa, said, “20,000 new vehicles were sold in Kenya last year, the highest on record, and 98 percent of those were trucks and buses. This reflected both the strong commercial sector as infrastructure projects take off, as well as the prevalence of second-hand passenger cars which dominate the clogged roads of the capital Nairobi.”
She further added in her interview with Reuters, “Three years ago we were producing about 10 vehicles and following upgrades and improvements, creating efficiencies has moved our production to about 22 vehicles a day. We continue to improve our processes, so we should be able to comfortably get 25 vehicles a day by mid of next year.”
Kenya is one of the three major hubs for GM in East Africa with the other two being South Africa and Egypt. The company also exports trucks to nearby countries including Uganda, Rwanda, Tanzania and Burundi Kenya. However, the trucks makers demand more support from local governing bodies and in due time the American conglomerate is hoping for better policies for its business.