Africa Automotive News September-October digital issue 2019

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News Hyundai enters Somaliland car market South Korea car manufacturer Hyundai has entered into the Somaliland market. Hyundai is the latest multinational company to venture into the Horn of Africa via Somaliland. Hyundai has launched a series of models in Somaliland capital Hargeisa after partnering with Dahabshiil Motors to introduce the brand new vehicles in the Horn of Africa country. By venturing into Somaliland, Hyundai joins Coca-Cola in the country that is seeking international recognition but boasts of a huge potential for international investments. HORN OF AFRICA The South Korean car manufacturer has partnered Dahabshiil group of companies to introduce Hyundai model of cars to the horn of Africa region. “Hyundai automotive business is not going to be limited to Somaliland, but aims at Horn region as a whole,” said Dahabshiil Motors Chief Executive Officer Engineer Awil Sharif. “In view of the ongoing developmental projects in Somaliland such as the expansion of Berbera port and the plan to create a free trade zone plus the construction of Berbera corridor highway, we are optimistic that the entry of Hyundai will have great impact in the motoring industry. Our strategic plan includes expanding business to other Somali regions and East Africa,” he affirms. He said they have introduced eight Hyundai models in the country. The models include Grand Santa Fe, Santa Fe, Tuscon, Creta, Elantra, Grand i10, a 14 seater commercial bus, and light track. “Most countries in Africa import four or five models. We started with eight models and will bring more models in future depending on customers’ demand,” Mr Sharif added. SIX MONTHS The entry of Hyundai in Somaliland comes just six months after the company opened a 10,000-a-year vehicle capacity assembly plant in the Ethiopian capital Addis Ababa. The Hyundai company operates the largest integrated automobile manufacturing facility in Ulsan, South Korea with an annual production capacity of 1.6 million units. The company employs about 75,000 people worldwide. Hyundai vehicles are sold in 193 countries through some 5,000 dealerships and showrooms. Dahabshiil Motors, who are the sole distributors of Hyundai vehicles in Somaliland and Somali regions are offering direct purchase and bank financing. “Dahabshiil Motors’ Hyundai can be purchased through Murabaha (the Islamic financing bank system). We are part of the Dahabshiil Group, so, our customers can buy our cars on finance,” stated the CEO SAFETY In terms of the automotive business, the company measured safety-related matters, environmental pollution problems and user comfortability before importing brand new Left Hand Drive quality vehicles to replace Right Hand Drive vehicles,” stated Mr Sharif. The entry of Hyundai in the Somaliland comes at a time when the country’s Ministry of Transportation announced it will ban imported Right-Hand Drive vehicles by 2020. Somaliland is also taking drastic steps to ensure safety on the country’s roads and reduce the effects of vehicle emissions created by unroadworthy cars. 8 Africa Automotive News l 2019 September-October issue l 2019
News Egyptian transport start-up Swvl targets expansion in Africa, Asia Lahore in July. “We aim to reach one million trips a day in Egypt over the next five years,” said Kandil. He and two other young Egyptian cofounders, Mahmoud Nouh and Ahmed Sabbah, own more than 30% of the company, he said. Egyptian transport technology start-up Swvl will expand into two cities in Pakistan in the next two weeks and begin operations in Nigeria’s commercial capital Lagos before the end of the year, its chief executive told Reuters. The firm, which operates buses along fixed routes and allows customers to reserve and pay for them using an app, will also expand into Manila in the first half of next year, its co-founder and CEO Mostafa Kandil told Reuters. “We will enter Lagos before the end of the year, and our eyes are on Dar es Salaam and Abidjan,” he said. The firm is also planning to launch in other South East Asian markets, he added. Kandil said the company is seeking to raise more than $100 million in a financing round in the first half of next year, and is targeting a $1 billion valuation in the next five years. Since its launch in April 2017 Swvl has secured the biggest round of funding for a tech start-up in Egypt. “We were a company worth about $2 million two years ago and our paid-up capital is now $80 million,” he said. Kandil, 25, said the company has been losing money, but expects to turn a profit in two to three years. “This year we have entered about seven new cities and next year we are targeting another 10 to 20 new big cities,” Kandil said. The Cairo-based firm, which is due to move its headquarters to Dubai in November, launched in Nairobi about six months ago and began operations in The rest is held by 17 investment funds, including U.S.-based Autotech Ventures, Sweden’s Vostok New Ventures, Oman’s sovereign wealth fund, the UAE’s BECO Capital and China’s MSA Capital. The Swvl app, which has fixed bus routes, uses the passenger’s location and destination to determine the shortest possible trip time based on the nearest bus stop. Uber and regional competitor Careem began operating their own bus services in Egypt in late 2018, competing directly with Swvl. Kandil said he hoped Swvl would eventually go public, but did not say on which stock exchange. He said he would in the longer term also consider a buyout offer from the likes of ride-hailing giant Uber. September-October issue l 2019 Mostafa Kandil, Chief Executive Officer of Swvl Africa Automotive News l 2019 9
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Page 13 and 14: A-MAP launches new range of ASIMCO
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Page 35 and 36: Review 16,000 to 17,000 euros. Kia
Page 37 and 38: Sam Abuelsamid, an analyst at Navig
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Page 41 and 42: Taiwan exports electric off-road mo
Page 43 and 44: you twist the throttle. Electric bi
Page 45 and 46: 1. Staying calm • Experts agree t

Africa Automotive News September-October digital issue 2019

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