Africa Automotive July-August digital issue 2023

Africa Automotive prides itself to be the ONLY Africa’s leading and MOST authoritative magazine for the automotive industry in Africa with printed copies for the automotive industry decision makers in both government, NGO’s and private sector. The Bi-monthly magazine offers cost effective advertising services that get results and improves growth in the auto B2C and B2B sector, keeping an eye on latest technologies in Africa and across the world, the magazine predominately covers the developments in the Africa auto industry.

Africa Automotive prides itself to be the ONLY Africa’s leading and MOST authoritative magazine for the automotive industry in Africa with printed copies for the automotive industry decision makers in both government, NGO’s and private sector. The Bi-monthly magazine offers cost effective advertising services that get results and improves growth in the auto B2C and B2B sector, keeping an eye on latest technologies in Africa and across the world, the magazine predominately covers the developments in the Africa auto industry.


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<strong>Africa</strong> <strong>Automotive</strong><br />

<strong>July</strong>-<strong>August</strong> <strong>2023</strong> Volume 5 <strong>issue</strong> no. 28<br />

Bus tyre inflation<br />

Importance of proper inflation and its impact on the vehicle performance<br />

In this <strong>issue</strong>......<br />

How can I tell if the Insurance<br />

Company is treating me fairly<br />

after a car accident?...<br />

Smart Manufacturing Is<br />

the Future of <strong>Automotive</strong><br />

Manufacturing...<br />

Automakers chart path for<br />

electric vehicles adoption,<br />

development...<br />

Pg 27 Pg 18<br />

Pg 32

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

Current Issue<br />

In this <strong>issue</strong>, we look<br />

at the importance of<br />

proper inflation and its<br />

impact on the vehicle<br />

performance & much<br />

more...enjoy the <strong>issue</strong>!<br />

Contents<br />

Contents<br />


News Briefs 4<br />

Events 10<br />

Innovation 12<br />

Opinion 18<br />

Safety Tips 36<br />

20<br />

16<br />

18<br />

Director<br />

<strong>August</strong>ine M. Rang’ondi<br />

Senior Editor &<br />

Marketing Lead<br />

Dorcas Kang’ereha<br />

Writers<br />

Harriet Mkhaye<br />

Irene Joseph<br />

Innocent Momanyi<br />

Sales Executives<br />

East <strong>Africa</strong><br />

Lydia Kamonya<br />

Caiser Momanyi<br />

Vincent Murono<br />

Sheila Ing’ayitsa<br />

South <strong>Africa</strong><br />

Paul Nyakeri<br />

Sean Masangwanyi<br />

Lisa Brown<br />

Thembisa Ndlovu<br />

Nigeria<br />

Emelda Njomboro<br />

Uche Maxwel<br />


Tyre inflation: The importance of proper inflation and its<br />

impact on the vehicle performance<br />

Features<br />

<strong>Automotive</strong> Refinish 4CR: Offering holistic refinishing<br />

solutions that empower to achieve exceptional results<br />

Manufacturing: How Kenya can fast-track its automotive<br />

manufacturing growth<br />

Car accident personal injuries: How can I tell if the Insurance<br />

Company is treating me fairly after a car accident?<br />

Electric vehicle: Automakers chart path for electric vehicles<br />

adoption, development<br />

Maintenance tips: The Benefits of Regular Bus Maintenance<br />

26<br />

10<br />

Designed and<br />

Published by:<br />

Josem Trust Place,<br />

3rd Floor, Bunyala Road,<br />

Upper Hill.<br />

P.O. Box 52248-00100,<br />

Nairobi, Kenya.<br />


Eumatch.....................................................................................IFC<br />

Thomas Hardie Commercials Ltd.........................................IBC<br />

Speedy.......................................................................................OBC<br />

Ceramic i3..................................................................................pg 10<br />

<strong>Africa</strong> <strong>Automotive</strong>....................................................................pg 11<br />

4CR-car refinish.......................................................................pg 16<br />

AJ <strong>Automotive</strong>..........................................................................pg 24<br />

Mars Exim...................................................................................pg 25<br />

Henkel......................... ................................................................pg 29<br />

Birla Tyres....................................................................................pg 30<br />

Everchen Filters..........................................................................pg30<br />

<strong>Africa</strong> <strong>Automotive</strong>......................................................................pg 30<br />

34<br />

Contact us<br />

Tel: +254 113 194 740<br />

Emaii: info@africaautomotivenews.com<br />

Web: https://africaautomotivenews.com<br />

The Editor accepts letter and manuscripts for publication from readers all over the world. Include your name and address as a sign of good faith although you may<br />

request your name to be withheld from publication. We can reserve the right to edit any material submitted. Send your letters to: info@africaautomotivenews.com<br />

Disclaimer:<br />

Nailex <strong>Africa</strong> Publishing Ltd makes every effort to ensure the accuracy of the contents of its publications, but no warranty is made to such accuracy<br />

and no responsibility will be borne by the publisher for the consequences of actions based on information so published. Further, opinions expressed<br />

on interviews are not necessarily shared by Nailex <strong>Africa</strong> Publishing Ltd.<br />

<strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong> 3

News<br />

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

Tanzania plans subsidy for Compressed Natural Gas vehicles<br />

The government of Tanzania<br />

is considering a possible<br />

subsidy for Compressed<br />

Natural Gas (CNG) vehicles<br />

to encourage uptake of the<br />

alternative to fuel consumption, this<br />

is according to Works and Transport<br />

minister, Prof. Makame Mbarawa.<br />

“The public authority is thinking<br />

about acquainting a subsidy program<br />

program with draw in additional<br />

individuals to change their vehicles<br />

over completely to CNG,” said the<br />

minister during an occasion to<br />

celebrate 50 years of Scania in<br />

Tanzania held in Dar es Salaam.<br />

The auto organization which starts<br />

from Sweden, bargains in the<br />

creation of transport vehicles. Prof.<br />

Mbarawa said the collaboration<br />

among Tanzania and Sweden has<br />

empowered advancement and<br />

critical improvement for a long time.<br />

Image: tpdctz<br />

“I salute Scania for their<br />

extraordinary work in reinforcing the<br />

relations between our nations. I’m<br />

especially intrigued by these natural<br />

gas-powered vehicles, which will<br />

decrease working expenses and air<br />

contamination,” he said.<br />

The Swedish Envoy to Tanzania,<br />

Charlotta Ozaki Macias, said it was<br />

extraordinary for an organization<br />

to keep going for 50 years in the<br />

Tanzanian market.<br />

“I accept that Scania plays a<br />

significant part in guaranteeing that<br />

Tanzania moves towards a green<br />

economy,” she said.<br />

Overseeing Head of Scania Tanzania,<br />

Lars Eklund, focused on that they<br />

keep on searching for venture open<br />

doors in the country to advance<br />

Tanzania’s turn of events.<br />

VON Automobile and Ashok Leyland assembler lauds Nigeria’s<br />

investment mission in India<br />

Dr. Harpreet Singh, the<br />

Managing Director of VON<br />

Automobile Nigeria, has<br />

commended Bola Tinubu’s<br />

efforts, highlighting the prospective<br />

investment in Nigeria’s automotive<br />

industry that resulted from his<br />

visit to India. The company which<br />

is a subsidiary of Stallion Group<br />

and maker of Ashok Leyland buses<br />

is currently modifying its locally<br />

assembled mass transit buses to run<br />

on compressed natural gas (CNG)<br />

and electric power.<br />

The President ‘s meeting with Mr.<br />

Gopichand Hinduja, Chairman<br />

and CEO of the Hinduja Group of<br />

Companies, led to the signing of<br />

a Memorandum of Understanding<br />

(MOU) for further investment in<br />

Nigeria’s automobile industry. Mr.<br />

Hinduja pledged a multi-billion<br />

dollar investment and expressed his<br />

commitment to bus and automobile<br />

manufacturing in Nigeria.<br />

Dr. Singh welcomed the<br />

news, expressing confidence<br />

that President Tinubu’s<br />

administration would prioritize<br />

the nation’s automobile<br />

industry. He stated that VON<br />

Automobile, as a pioneer and<br />

leading automobile assembler<br />

since 2013, remains dedicated<br />

to supporting the government’s<br />

push for a clean and eco-friendly<br />

environment with mass transit<br />

buses running on clean and<br />

affordable energy sources.<br />

The locally assembled Ashok<br />

Leyland buses, including the<br />

Falcon and Hawk models, have<br />

been available in Nigeria since<br />

2014. These buses are specifically<br />

designed for the Nigerian<br />

environment, offering durability,<br />

power, safety, and a longer<br />

lifespan.<br />

President Bola Tinubu during the Nigeria-India Presidential<br />

Roundtable and Conference in New Delhi, India [PHOTO<br />

CREDIT: @NTANewsNow]<br />

Additionally, Dr. Singh emphasized<br />

that the CNG and electric-powered<br />

Falcon and Hawk buses will help<br />

reduce running costs for Nigerians,<br />

particularly in light of recent fuel<br />

subsidy removal measures. VON<br />

Automobile’s state-of-the-art service<br />

centers and certified technical<br />

specialists are also ready to provide<br />

world-class after-sales support to<br />

extend the lifespan of the buses.<br />

4 <strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong>

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

Iran to set up motor vehicle assembly plant in Mombasa<br />

News<br />

The Iranian government is<br />

planning to set up a motor<br />

vehicle assembly plant<br />

in Mombasa to produce<br />

indigenous Iranian motor vehicles,<br />

this is according to President Dr.<br />

William Ruto after talks with his<br />

visiting Iran President Sayyid<br />

Ebrahim Raisi. President Ruto has<br />

expressed optimism about the<br />

project, dubbing it as ‘good news’ for<br />

stakeholders in Kenya’s mechanical<br />

and automotive sectors.<br />

"His Excellency Raisi conveyed to me<br />

information that will be good news<br />

for stakeholders in our mechanical<br />

and automotive sectors including<br />

dealers, engineers technicians and<br />

other workers. Iran's intention is to<br />

set up a motor vehicle assembly<br />

plant in Mombasa to manufacture<br />

an indigenous Iranian vehicle that<br />

has been given the Kiswahili name<br />

Kifaru. I am confident the project is<br />

President William Ruto when he hosted Iran President Sayyid Ebrahim Raisi at State House, Nairobi on <strong>July</strong> 12,<br />

<strong>2023</strong>. Image: courtesy<br />

unstoppable as this name suggests,"<br />

said Ruto.<br />

He added that the partnership with<br />

Iran is an affirmation of the strong<br />

bond the people and government of<br />

Kenya share with the people and the<br />

government of Iran.<br />

"This highly productive visit has<br />

been an excellent opportunity for<br />

us to renew and reaffirm the strong<br />

bonds of friendship and solidarity<br />

between the governments and<br />

peoples of Kenya and Iran," affirm<br />

Ruto.<br />

Morocco to host <strong>Africa</strong>’s first electric car battery Gigafactory<br />

generate an estimated 25,000 job<br />

opportunities over a period of 10<br />

years, stimulating economic growth<br />

and prosperity in Morocco and the<br />

region.<br />

The signing ceremony of the MoU. Image: courtesy<br />

The Moroccan government<br />

and Chinese-European<br />

electric mobility company<br />

GOTION High-Tech have<br />

come to an agreement through<br />

signing of a Memorandum of<br />

Understanding (MoU) to establish a<br />

gigafactory which will be entitled<br />

with the production of electric<br />

car batteries and energy storage<br />

systems, the first of its kind in <strong>Africa</strong>.<br />

According to a release statement,<br />

the US$6.4 billion project aims to<br />

strengthen Morocco’s position as a<br />

leader in the automotive industry<br />

in <strong>Africa</strong>. The project will also<br />

Additionally, the state-of-the-art<br />

facility holds the potential to create<br />

a comprehensive battery production<br />

solution with a capacity of 100<br />

gigawatts per year. The statement<br />

indicated that GOTION High-Tech<br />

chose Morocco as an investment<br />

destination due to the country’s<br />

expertise in the sector, as well as<br />

its commitment to sustainable<br />

development.<br />

The agreement was signed on the<br />

sidelines of the first edition of<br />

GITEX <strong>Africa</strong> by Morocco’s Minister<br />

Delegate in charge of Investment,<br />

Convergence, and Evaluation of<br />

Public Policies, Mohcine Jazouli, and<br />

the President of GOTION High-Tech<br />

Li Zhen.<br />

<strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong> 5

News<br />

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

Antolin Unveils Plans to expand presence in Morocco<br />

With the aim of expanding<br />

its footprint in Morocco,<br />

Antolin, a Spanish<br />

automobile component<br />

manufacturer has announced plans<br />

to boost its investments where it<br />

already operates a factory in the city<br />

of Tangier.<br />

According to Antolin’s Vice President<br />

Maria Helena Antolin, Morocco<br />

is undoubtedly one of the most<br />

attractive countries in <strong>Africa</strong> and<br />

the Maghreb. She expressed her<br />

confidence in the North <strong>Africa</strong>n<br />

country’s economic stability, robust<br />

infrastructure, “significant economic<br />

incentives for investment,” as well<br />

as favorable geopolitical positioning<br />

for trade between Europe and <strong>Africa</strong>.<br />

She also highlighted Morocco’s<br />

remarkable GDP growth.<br />

The company recognized Morocco’s<br />

“abundant and increasingly<br />

skilled workforce,” noting its cost-<br />

Image: Courtesy<br />

effectiveness compared to Spain and<br />

other European nations. Antolin sees<br />

great potential in utilizing Morocco<br />

as a production platform for both<br />

local manufacturers and customers<br />

from across the world.<br />

The company’s Vice President<br />

participated last month in a Spanish-<br />

Moroccan forum, during which<br />

she praised the existing free trade<br />

agreement between Spain and<br />

Morocco, which facilitates tariff-free<br />

commerce in components between<br />

the two countries.<br />

Motorcare is the new official distributor of Ford in Uganda<br />

Motorcare Uganda is the<br />

newly authorized official<br />

distributor and sole<br />

official importer-dealer<br />

for Ford and Caetano in Uganda; this<br />

appointment comes after the end of<br />

the prior contract with CMC Motors.<br />

Motorcare Uganda has a cumulative<br />

experience, strong market<br />

knowledge, and commitment to<br />

service excellence and will provide<br />

Ford customers in Uganda with the<br />

highest standards of Ford products,<br />

services, and support.<br />

“We are delighted to welcome<br />

Salvador Caetano Group to the Ford<br />

family again,” said Achraf El Boustani,<br />

Managing Director of Northern<br />

and Sub-Saharan <strong>Africa</strong> at Ford<br />

Motor Company. “We are confident<br />

that this new step with Salvador<br />

Caetano offers the Ford brand a vital<br />

opportunity to gain market share in<br />

Kenya and Uganda.”<br />

Image: Courtesy<br />

El Boustani further explains that<br />

“The Ford and Caetano partnership<br />

will continue to serve loyal<br />

customers through a range of<br />

products and services, offering both<br />

professionalism and satisfaction, as<br />

customer satisfaction is always our<br />

priority. We will stand close to our<br />

partners to face this exciting new<br />

opportunity. Our main objective is<br />

to give our Ugandan customers the<br />

best-in-class experience and service,<br />

meeting Ford’s standards.”<br />

Gabriel Almeida, COO of Salvador<br />

Caetano said the company was<br />

thrilled to be appointed as Ford’s<br />

new distributor-partner in Kenya<br />

and Uganda. “Salvador Caetano is<br />

looking forward to strengthening our<br />

long-term partnership with Ford on<br />

the <strong>Africa</strong>n continent and remains<br />

committed to delivering some of the<br />

best vehicle ownership experiences<br />

to Ford customers,” he said. Adding<br />

that “Our appointment of Motorcare<br />

in Uganda, as our national dealerpartner,<br />

secures the customers and<br />

markets a professional and personal<br />

service in sales and after-sales.”<br />

Mads Kjaer, Chairman of Motorcare<br />

Uganda in his remarks said “It’s our<br />

priority to service all the existing<br />

Ford customers and welcome them<br />

to Motorcare as the new Ford dealer<br />

for Uganda.”<br />

6 <strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong>

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

Ethiopia suspends Chinese assembled Volkswagen<br />

EVs at firm’s request<br />

News<br />

The Ministry of Transport<br />

and Logistics has imposed<br />

a temporary suspension<br />

on imports of Chineseassembled<br />

Volkswagen cars after a<br />

request from the German automobile<br />

maker.<br />

The Ministry said the ban was<br />

placed after Volkswagen wrote to<br />

authorities through the German<br />

Embassy stating that the Chineseassembled<br />

vehicles were not legally<br />

authorized by Volkswagen.<br />

The Chinese-made electric<br />

Volkswagen models have been<br />

Volkswagen ID.3 electric automobilesPhotographer: Krisztian Bocsi/Bloomberg<br />

available in the local market for<br />

over a year, gaining market share<br />

in the automobile vehicle market<br />

dominated by Toyota.<br />

The popularity of the Chineseassembled<br />

EVs surged after the<br />

Ethiopian government exempted all<br />

electric cars from VAT, excise tax and<br />

surtax as part of efforts to promote<br />

electric mobility. Only the customs<br />

tax, which is below 15 percent,<br />

remains for imported electric<br />

vehicles.<br />

However, Volkswagen has now<br />

disowned the Chinese-made<br />

cars, claiming that they were not<br />

legally authorized by the company,<br />

according to the Ministry. The<br />

temporary suspension will remain<br />

in place until the matter is properly<br />

investigated and resolved.<br />

South <strong>Africa</strong> to produce BMW plug-in hybrid car<br />

Image: Courtesy<br />

German car manufacturer<br />

BMW to invest about<br />

US$218 million into its<br />

factory in South <strong>Africa</strong> where<br />

X3 models will be produced and<br />

exported to countries all over the<br />

world. The production will start next<br />

year at Plant Rosslyn, in Pretoria, and<br />

will make South <strong>Africa</strong> the second<br />

country in the world, after the United<br />

States, to produce and export its X3<br />

plug-in hybrid model.<br />

“We will manufacture the BMW X3<br />

as a plug-in hybrid for global export<br />

in South <strong>Africa</strong>,” Milan Nedeljkovic,<br />

board member for production, BMW<br />

said in a statement.<br />

South <strong>Africa</strong> began manufacturing<br />

the X3, the firm’s best-selling<br />

model, in 2018 and the country<br />

boasts a booming automotive<br />

industry which according to news<br />

site VOA contributed 4.3% of the<br />

gross domestic product in 2021<br />

according to the International Trade<br />

Administration.<br />

BMW said its Pretoria plant has<br />

produced over 1.6 million vehicles,<br />

exporting to more than 40 countries<br />

globally including 14 across the<br />

<strong>Africa</strong>n continent.<br />

<strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong> 7

News<br />

Kenya Keen on Hosting More <strong>Automotive</strong> Players<br />

Kenya is committed to hosting<br />

more automotive players to<br />

increase local production of<br />

vehicles.<br />

President William Ruto said the<br />

National <strong>Automotive</strong> Policy has<br />

created a conducive environment for<br />

firms to set up in Kenya.<br />

He noted that the policy has tamed<br />

instability in the sector, especially<br />

regarding tax laws.<br />

“Our plan is for more assemblers to<br />

set up and operate at full capacity<br />

so that we can supply <strong>Africa</strong> with<br />

competitive units,” he noted.<br />

The President said this will<br />

create more jobs, enhance skills<br />

development and reliable mobility.<br />

He maintained that it was time for<br />

Kenya to claim its rightful place<br />

among <strong>Africa</strong>’s leading vehicle<br />

manufacturers.<br />

The Head of State spoke on<br />

Wednesday when he launched the<br />

first ever electro-deposition paint<br />

plant at the Isuzu East <strong>Africa</strong><br />

It is expected that the KSh500<br />

Million will deepen the firm’s<br />

manufacturing, improve local<br />

production and make it globally<br />

competitive.<br />

Present were Isuzu East <strong>Africa</strong><br />

Managing Director Rita Kavashe,<br />

Trade Principal Secretary Alfred<br />

K’Ombudo, Isuzu East <strong>Africa</strong><br />

Chairman Hiroshi Hisatomi, Deputy<br />

Chief of Mission Counsellor in<br />

the Embassy of Japan Kitagawa<br />

Yasuhisha, among others.<br />

“With investments like Isuzu’s, we<br />

can propel Kenya back to its original<br />

vision of leading <strong>Africa</strong>’s automotive<br />

competitiveness.”<br />

The President urged investors to<br />

image: Courtesy<br />

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

advance their investment in Kenya<br />

by moving into Tier One component<br />

of manufacturing.<br />

He said Kenya intends to fully<br />

exploit the immense opportunities<br />

presented in the automotive<br />

industry’s untapped potential.<br />

Mr Yasuhisha noted that Isuzu’s<br />

investment will stimulate the<br />

transfer of technology, knowledge<br />

and expertise.<br />

Deezer launches new automotive app<br />

Music streaming platform<br />

Deezer has launched<br />

a new automotive app,<br />

now accessible in cars<br />

equipped with Google built-in and<br />

those featuring the automotive app<br />

store Faurecia Aptoide.<br />

Deezer, which boasts a catalogue<br />

of more than 120 million songs,<br />

says the decision was driven by the<br />

increasing demand for dedicated car<br />

apps that replicate the smartphone<br />

experience, and aligns with the<br />

company’s ambition to foster<br />

innovation and establish successful<br />

partnerships across various<br />

industries.<br />

“Music has the power to enhance<br />

any situation, and listening to your<br />

top songs in the car is essential<br />

to people all over the world. It’s<br />

our pleasure to introduce our new<br />

Image: courtesy<br />

automotive app, giving drivers<br />

seamless access to their favourite<br />

music on Deezer,” the company’s VP<br />

for product and engineering, Nicolas<br />

Pinoteau, said. “With this launch,<br />

we’re excited to get on the road<br />

with some of the world’s finest car<br />

manufacturers.”<br />

“We are thrilled that our customers<br />

can enjoy the popular music<br />

streaming application Deezer now,”<br />

Renault Group <strong>digital</strong> partnership<br />

head Jean-François Labal added.<br />

8 <strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong>

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

BENTELER expansion a boost for automotive<br />

manufacturing industry<br />

News<br />

Patel said this development reaffirms<br />

the nation's growth trajectory and<br />

its status as a hub for automotive<br />

production, notably in the Eastern<br />

Cape province.<br />

During the construction phase, this<br />

expansion generated employment<br />

opportunities for 236 individuals<br />

and provided business opportunities<br />

to 42 different companies.<br />

image: courtesy<br />

Trade, Industry and<br />

Competition Minister,<br />

Ebrahim Patel, says the<br />

expansion of the BENTELER<br />

South <strong>Africa</strong> plant in Gqeberha<br />

represents a significant milestone in<br />

South <strong>Africa</strong>'s thriving automotive<br />

manufacturing industry.<br />

The Minister has welcomed the<br />

investment made by BENTELER,<br />

which has resulted in the expansion<br />

of the Gqeberha plant by over 9<br />

000m2, positioning it as the third<br />

hot forming plant in South <strong>Africa</strong>.<br />

The company started operating in<br />

Gqeberha in 2011.<br />

Furthermore, it is anticipated that<br />

an additional 50 skilled jobs will<br />

be created, increasing BENTELER's<br />

workforce from 697 to 743.<br />

“The investment is also a testament<br />

to the efficacy of the Department of<br />

Trade, Industry and Competition's<br />

<strong>Automotive</strong> Production and<br />

Development Programme (APDP)<br />

and the <strong>Automotive</strong> Investment<br />

Scheme (AIS), operating within the<br />

framework of the South <strong>Africa</strong>n<br />

<strong>Automotive</strong> Masterplan (SAAM).<br />

<strong>Africa</strong>n mobility startup Moove secures $8m for Ghana expansion<br />

<strong>Africa</strong>n mobility startup,<br />

Moove, renowned for<br />

providing revenue-based<br />

vehicle financing to mobility<br />

entrepreneurs and democratising<br />

vehicle ownership across <strong>Africa</strong>, has<br />

procured a funding of $8m from<br />

Absa Corporate and Investment<br />

Banking.<br />

This move is a stride towards<br />

expanding its vehicle fleet in Ghana,<br />

according to a report from Tekedia.<br />

The latest investment propels<br />

Moove’s total funding from Absa to<br />

$28m, marking a significant increase<br />

from the previous $20m raised in<br />

<strong>July</strong> 2022.<br />

Moove’s business model revolves<br />

around supporting mobility<br />

entrepreneurs by offering accessible<br />

vehicle ownership. This is achieved<br />

through revenue-based financing<br />

Image courtesy<br />

which breaks down the economic<br />

barriers to employment and<br />

encourages a rising class of mobility<br />

entrepreneurs. The startup also<br />

prides itself in offering fuel-efficient<br />

Suzuki vehicles which are assembled<br />

in Ghana.<br />

According to the company, it has<br />

recorded over 2.7 million trips<br />

through Moove-financed vehicles<br />

and covered more than 3,000 lives<br />

through its health and life insurance<br />

policies for its users and their<br />

dependents.<br />

<strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong> 9

10 <strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong><br />

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong>

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

Autoshow<br />

AAPEX <strong>2023</strong><br />

For three days this fall, Las Vegas<br />

is where aftermarket challenges<br />

meet solutions. AAPEX <strong>2023</strong> is back<br />

in town, bringing the automotive<br />

industry together at the Venetian Expo.<br />

Reconnect with a global community<br />

of auto parts & technology suppliers,<br />

distributors, and retailers. Advance your<br />

expertise through hands-on training. And<br />

take in live demos and product exhibits<br />

to stay up to date with the constantly<br />

changing technology in today’s vehicles.<br />

AAPEX isn’t some flashy Las Vegas car<br />

show. It’s where the aftermarket industry<br />

rolls up its sleeves to take on challenges,<br />

build relationships, and keep businesses<br />

running at full speed.<br />

AAPEX is dedicated to bringing the best<br />

talent to the automotive aftermarket<br />

industry, and as part of this initiative<br />

is offering two options for students to<br />

attend this year’s event, as well as, an<br />

opportunity for aftermarket companies to get involved in the program.<br />

The first option is, the Student Sponsorship Program that invites<br />

students to apply to attend AAPEX for first-hand industry experience<br />

and networking opportunities. Students selected for participation will<br />

receive two days of learning, including access to all AAPEX training and<br />

general education sessions, as well as hosted functions. Participants will<br />

receive complimentary AAPEX registration, reception tickets, a threenight<br />

hotel stay in Las Vegas, and a food and transportation stipend.<br />

Follow us on:<br />

@Autonews_<strong>Africa</strong><br />

@<strong>Africa</strong> <strong>Automotive</strong><br />

BE BOLD or Italic<br />

but NEVER regular<br />

LET US<br />

BOLD YOU<br />


<strong>Africa</strong> <strong>Automotive</strong> prides itself to be the ONLY <strong>Africa</strong>’s leading and MOST<br />

authoritative magazine for the automotive industry in <strong>Africa</strong> with<br />

printed copies for the automotive industry decision makers in both<br />

government, NGO’s and private sector. The Bi-monthly magazine offers<br />

cost effective advertising services that get results and improves growth<br />

in the auto B2C and B2B sector, keeping an eye on latest technologies in<br />

<strong>Africa</strong> and across the world, the magazine predominately covers the<br />

developments in the <strong>Africa</strong> auto industry.<br />

Contact us on:<br />

+254 113 194 740<br />

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<strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong> 11

New Model<br />

New Omoda C9 launches<br />

in South <strong>Africa</strong><br />

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

12 <strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong>

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

New Model<br />

The new Omoda C9 model, a luxury wing of<br />

Chery launches in South <strong>Africa</strong>. The sleeker<br />

Omoda, derived from Oxygen and Moda<br />

(meaning modern), made a debut during the<br />

Festival of Motoring at Kyalami as the brand’s new<br />

flagship.<br />

The C9 raises the luxury flagship boasting coupeinspired<br />

styling and a luxurious interior of a floating<br />

bridge design dash, heated/cooled ventilation and<br />

massage-enabled front and rear seats with a diamondpattern<br />

leather upholstery, and a panoramic sunroof<br />

among other features. The front passenger seat has a<br />

fold-out leg rest of the kind you’d expect in a 7 Series<br />

or S-Class and as you’d expect from a modern Chinese<br />

offering, there is plenty of screen real estate and flashy<br />

mood lighting.<br />

Typical of Chinese brands, <strong>digital</strong> wizardry available in<br />

the model includes a curved screen, augmented-reality<br />

(AR) navigation, facial recognition, a 50W wireless<br />

ultra-fast charger and a nine-speaker Sony sound<br />

system. The safety includes an ABS brakes, stability<br />

control, airbags and a host of driving assistance systems<br />

including automatic headlights, rain-sensing wipers,<br />

adaptive cruise control (ACC), forward-collision warning,<br />

emergency braking, blind spot detection (BSD), lane<br />

keeping and rear cross-traffic alert.<br />

The C9 is powered by a 2.0l petrol engine with outputs<br />

of 193kW and 400Nm, with all-wheel drive (AWD) via an<br />

eight-speed automatic transmission. Local buyers will<br />

also get to choose between front-wheel drive and allwheel<br />

drive variants.<br />

At this stage, not much information has been revealed<br />

that is indicative of pricing, however, Omoda SA confirms<br />

the C9 will be in local dealerships before the end of the<br />

year.<br />

Images courtesy<br />

<strong>Africa</strong> <strong>Automotive</strong> News l l <strong>2023</strong> 13

Cover Story<br />

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

Bus tyre inflation<br />

The importance of proper inflation and<br />

its impact on the vehicle performance<br />

White Bus on the Road<br />

By Dorcas Kang'ereha<br />

Following manufacturer’s indication on tyre<br />

pressure levels is a very critical and vital task to<br />

keep up with. The air pressure in tyres supports<br />

the entire weight of the bus, and this calls for a<br />

regular monitoring of the vehicle’s tyre pressure levels.<br />

This will help in maintaining the correct<br />

tyre pressure that will help in keeping<br />

you, persons on board and other road<br />

users safe. Correct tyre inflation improves<br />

the vehicle performance; cuts fuel costs<br />

and ensures that you are receiving the<br />

most lifespan out of your bus tyres.<br />

consumption is greatly reduced. An incorrect inflation<br />

pressure level intensifies the fuel consumption, escalates<br />

the rolling resistance of tyres that could lead to an<br />

unfortunate incident.<br />

“Proper tyre inflation pressure is critically important for<br />

safe operation of buses. Just recently, a bus crash in the<br />

United States injured 12 people when a tire blew out.<br />

The driver lost control of the vehicle, and the bus landed<br />

on its side,” says Demis. “Thankfully, everyone survived<br />

“The air inside a tyre carries the load<br />

of the vehicle. Underinflation causes<br />

damage to the side-wall of the tyre,<br />

increases heat build-up, and eventually<br />

a tyre failure,” says Lee Demis, Vice<br />

President of Business Development at<br />

Doran Manufacturing.<br />

Proper bus tyre pressure has a significant<br />

and proven impact on the vehicle<br />

handling, passenger comfort and safety,<br />

enhanced braking conditions and fuel<br />

Tyre inflation. Image: courtesy<br />

14 <strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong>

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l l <strong>2023</strong><br />

Auto mechanic inspecting tyres and wheels. Image: courtesy<br />

Tyre Inflation Equipment<br />

Conferring to Paul Webber, the<br />

General Manager of Mavtech, under<br />

inflation becomes an especially<br />

serious problem when the inside<br />

tyre of a set of duals begins losing<br />

pressure. In some cases, both<br />

tyres fail with very dangerous<br />

consequences. Webber further<br />

elaborates on the importance of<br />

proper bus tyre inflation and its<br />

impact on the vehicle safety and<br />

handling performance.<br />

i. Better tyre mileage<br />

Improper inflation accounts for 80%<br />

of re-tread separations, cuts, bruises,<br />

flats and blowouts. Under inflation<br />

of only 5 PSI reduces tyre life by a<br />

shocking 25%.<br />

Demonstration of different types of tyre inflation. Image: for illustration purposes<br />

this incident,” he clarifies.<br />

Additionally, according to Andre Gerken, General<br />

Manager at Celerity DRS GmbH, the correct tyre inflation<br />

has a huge impact on the road safety and operating<br />

costs of a vehicle. “Consider that the tyres are the only<br />

connection between the vehicle and the road. Therefore,<br />

a wrong tyre pressure can directly influence the handling<br />

and the brake performance of the vehicle. With a low<br />

tyre pressure more of the tyre surface contacts the road,<br />

which increase the drag and the result is a higher tyre<br />

wear and fuel consumption,” articulates Gerken.<br />

The Tyre Pressure Monitoring Systems (TPMS)<br />

Tyres are often overlooked by drivers, and the effect<br />

to this delicate negligence is a result to a fatal road<br />

accident, property damage and loss of lives. However,<br />

with the help of tyre pressure monitoring systems<br />

(TPMS), loss of vehicle, lives and property damages can<br />

be reduced to the lowest.<br />

“Tyre pressure monitoring systems can monitor<br />

both pressure and temperature, and alert drivers to<br />

underinflation and critical high temperatures before<br />

catastrophic tyre failures occur. Bus operators can<br />

improve the safety of their vehicles and improve the<br />

efficiency of their fleet by properly utilizing TPMS,”<br />

counsels Demis.<br />

“With the help of a tyre inflation system, the correct<br />

pressure can be always ensured, while stationary or in<br />

transit,” adds Gerken.<br />

ii. Less down time<br />

Tyre Pressure System virtually<br />

eliminates the need for costly road<br />

service calls and expensive down<br />

time. If a tyre has been punctured, Tyre Pressure systems<br />

will continue to inflate that tyre and, at the same time,<br />

let the driver know what is happening. He’s then aware<br />

of the situation and can continue on to his destination or<br />

plan to stop for service.<br />

iii. Better fuel economy<br />

For every PSI of under inflation, your vehicle consumes<br />

0.8% more fuel. Talk about giving your budget a boost!<br />

iv. Increased safety<br />

Under inflated tyres is a major cause of truck and bus<br />

accidents on highways. Proper inflation is the most<br />

important requirement for maximum tyre safety. Correct<br />

tyre pressure provides proper sidewall flexing and safe<br />

operating temperature of the tyres.<br />

Commercial vehicles, such as trailers, trucks, buses and<br />

coaches are faced with all kind manner of challenges<br />

due to the different work done by the vehicle and the<br />

different load change in a typical operating day. Tyres are<br />

a critical component for a smooth operation of a bus and<br />

clearly no tyre will work as expected if it is used with<br />

incorrect air pressure. Under or over inflated bus tyres<br />

are un-safe and increase costs to the operator.<br />

You could agree that, being a key component, bus tyres<br />

must be kept with the correct air pressure at all times,<br />

weather parked or on the move. This is to uphold the<br />

smooth operation of the vehicle, weather full or empty,<br />

heavy or light, from low speed to maximum speed and<br />

on different road conditions. Proper bus tyre inflation<br />

also promotes the safety of those onboard, pedestrians<br />

and other road users. Keep safe, maintain correct tyre<br />

pressure at all times!<br />

<strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong> 15

Interview<br />

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

4CR: A premier brand in the<br />

refinishing market<br />

Offering holistic refinishing solutions that<br />

empower to achieve exceptional results<br />

By Dorcas Kang'ereha<br />

4CR is a distinguished name in the automotive<br />

industry, serving as a strong system supplier for<br />

car refinish products. With a deep commitment<br />

to innovation, quality, and customer<br />

satisfaction, 4CR has established itself as a reliable<br />

partner for businesses involved in vehicle refinishing.<br />

Their comprehensive product range and unwavering<br />

dedication to excellence have positioned them as a<br />

preferred choice in the market.<br />

<strong>Africa</strong> <strong>Automotive</strong> News conducted an exclusive<br />

interview with Marc Drews, Key Account – Marketing<br />

Manager at 4CR and he reveals their unwavering<br />

commitment to manufacturing quality product solutions<br />

and their dedication to continuous improvement.<br />

Marc Drews, Key Account<br />

– Marketing Manager, 4CR -<br />

Germany<br />

‘<br />

<strong>Africa</strong>'s refinishing<br />

market holds immense<br />

potential. As economic<br />

and infrastructural<br />

developments continue,<br />

the need for efficient,<br />

cost-effective, and<br />

durable refinishing<br />

solutions becomes more<br />

pronounced.<br />

~ Marc Drews<br />

AA: What are your major product solutions?<br />

MD: At 4CR, we offer a complete suite of product<br />

solutions tailored to every step of the car refinish<br />

process. Our portfolio includes advanced sanding<br />

solutions, specialized putties, fillers and clearcoats,<br />

efficient application tools, and comprehensive support<br />

materials. From abrasives to polishing products and<br />

everything in between, we provide the tools necessary to<br />

achieve exceptional finishes while maximizing efficiency.<br />

AA: Recently, you participated in an auto exhibition in<br />

Kenya, was it your first exhibition in <strong>Africa</strong>? How was<br />

your experience in the Kenyan market?<br />

MD: Yes, our recent participation at the AutoExpo in<br />

Kenya marked our entry into the <strong>Africa</strong>n market. The<br />

experience was incredibly positive, allowing us to<br />

engage with industry professionals, understand market<br />

dynamics, and showcase our product excellence. The<br />

response from the Kenyan market was enthusiastic,<br />

which reaffirmed our belief in the potential of the<br />

<strong>Africa</strong>n automotive refinish market.<br />

4CR exhibiting at a recent autoexpo in Kenya. Image courtesy 4CR<br />

AA: How would you describe <strong>Africa</strong>’s refinishing market<br />

potential?<br />

16 <strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong>

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

Auto Refinishing<br />

our products remain at the forefront of innovation and<br />

performance.<br />

AA: How do you stay up-to-date with the latest<br />

advancements in auto refinishing technology?<br />

MD: We stay up-to-date with the latest advancements in<br />

auto refinishing technology through active engagement<br />

with industry research, attending global automotive<br />

expos, collaborating with research institutions, and<br />

maintaining a robust network of partnerships with other<br />

leaders in the field.<br />

AA: Are there market challenges that you face? If yes,<br />

what is your approach?<br />

4CR products display during a recent autoexpo exhibition in Kenya. Image<br />

courtesy 4CR<br />

MD: <strong>Africa</strong>'s refinishing market holds immense potential.<br />

The continent's growing automotive industry, coupled<br />

with an increasing demand for high-quality vehicle<br />

finishes, presents numerous opportunities. As economic<br />

and infrastructural developments continue, the need for<br />

efficient, cost-effective, and durable refinishing solutions<br />

becomes more pronounced.<br />

AA: When working on a vehicle refinishing task, what is<br />

the most important thing to remember?<br />

MD: In vehicle refinishing, attention to detail is<br />

paramount. Each step, from surface preparation to<br />

the final clearcoat, must be executed meticulously. A<br />

thorough understanding of the specific requirements<br />

of each vehicle and the environment in which the<br />

refinishing is taking place is essential to achieve a<br />

flawless, long-lasting finish.<br />

AA: How do you ensure that you maintain a high quality<br />

refinishing products for your customers?<br />

MD: Maintaining high-quality refinishing products is<br />

central to our mission. We achieve this through rigorous<br />

quality control processes at every stage of production.<br />

Our research and development team continuously<br />

explores new materials and technologies, ensuring that<br />

MD: Market challenges are opportunities for growth.<br />

We approach challenges as chances to innovate and<br />

better serve our customers. By actively seeking feedback,<br />

adapting to changing market needs, and investing in<br />

research and development, we turn challenges into<br />

catalysts for progress.<br />

AA: What makes you the best manufacturer in the<br />

refinishing market?<br />

MD: What distinguishes 4CR as a premier brand in<br />

the refinishing market is our unwavering commitment<br />

to quality, our comprehensive range of products,<br />

our dedication to continuous improvement, and our<br />

personalized customer support. We offer not just<br />

products, but holistic solutions that empower our<br />

customers to achieve exceptional results.<br />

AA: What training programs do you have in place?<br />

MD: 4CR takes pride in supporting our partners beyond<br />

just product supply. We offer comprehensive training<br />

programs that cover the correct usage of our products,<br />

application techniques, safety protocols, and emerging<br />

trends in the automotive refinishing industry. These<br />

programs are designed to enhance the skills and<br />

knowledge of technicians and contribute to the overall<br />

success of our clients.<br />

<strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong> 17

Opinion<br />

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

Smart<br />

Manufacturing<br />

Is the Future<br />

of <strong>Automotive</strong><br />

Manufacturing<br />

Author: Peter Loh, partner at Foley & Lardner LLP<br />

The latest phase of digitization in manufacturing<br />

or “smart manufacturing” has transformed the<br />

automotive industry. Through the growing use of<br />

artificial intelligence (AI), machine learning, and<br />

automation, auto manufacturers are now more than<br />

ever able to overcome operational difficulties and solve<br />

maintenance <strong>issue</strong>s before they occur. Here are some of<br />

the key aspects and technologies auto manufacturers are<br />

using:<br />

1. Digital twins: A <strong>digital</strong> twin, also known as a surrogate<br />

model, is a virtual representation used to reflect a<br />

real-world product. This <strong>digital</strong> counterpart simulates<br />

the real product’s performance. An automobile’s <strong>digital</strong><br />

twin is made up of the entire automobile: its software,<br />

mechanics, and behavior. The use of a <strong>digital</strong> twin allows<br />

automotive manufacturers to replicate the production<br />

process and identify potential complications or failures.<br />

Examples include:<br />

Product testing. A <strong>digital</strong> twin allows automotive<br />

manufacturers to experiment with different designs to<br />

optimize product performance. A <strong>digital</strong> twin of a car<br />

tire allows manufacturers to virtually simulate the tire<br />

performance in different weather conditions.<br />

Predictive maintenance. Predictive maintenance forecasts<br />

when automotive components will break down and to<br />

fix them preemptively. Digital twins allow automotive<br />

18 <strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong>

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

Opinion<br />

companies to identify potential <strong>issue</strong>s and schedule<br />

maintenance before the problem occurs.<br />

Performance monitoring. Digital twins constantly collect<br />

and analyze data on the vehicles they replicate. Tesla,<br />

for example, creates a <strong>digital</strong> twin of all its vehicles.<br />

These virtual replicas are used to determine whether a<br />

car is working as intended. Tesla uses this information to<br />

update vehicle performance.<br />

North America accounted for around 38% of the <strong>digital</strong><br />

twin market in 2021. The global <strong>digital</strong> twin market<br />

size is projected to reach US $155.83 billion by 2030,<br />

with a Compound Annual Growth Rate (CAGR) of 37.5%<br />

in the next seven years. The automotive and transport<br />

sector is expected to account for the fastest growth rate<br />

percentage as developments in electric vehicles drive<br />

the adoption of <strong>digital</strong> twin technology.<br />

2. Internet of Things: <strong>Automotive</strong> Internet of Things<br />

(IoT) is a system of devices that exchange data through<br />

an internet connection. This allows automotive devices<br />

to share information with other vehicles connected<br />

to the internet. Vehicles manufactured with IoT<br />

collect performance data and share it with the cloud.<br />

Manufacturers can then process this data and assess<br />

potential risks and necessary steps for moving forward.<br />

IoT allows manufacturers to communicate maintenance<br />

system updates to consumers so manufacturers may<br />

address <strong>issue</strong>s before a car breaks down.<br />

3. AI in supply chain: AI has made the transition from<br />

raw material to the manufacturing of the vehicle to<br />

customer delivery significantly easier. For years, one<br />

of the biggest challenges in the automotive industry<br />

has been the risk of a single, small mistake affecting<br />

the entire manufacturing process. A problem with one<br />

supplier tier, for example, can stop the entire vehicle<br />

manufacturing process. AI-powered supply chains can<br />

adapt and respond to any unforeseen <strong>issue</strong>s in the<br />

manufacturing process. AI-based approaches have<br />

the potential to reduce forecasting errors by 30 to 50<br />

percent. “Smart factories” are becoming increasingly<br />

prevalent, as manufacturers are replacing the error risk<br />

of manual labor with self-improving systems. Several<br />

renowned automotive manufacturing companies<br />

are working towards fully automated AI systems<br />

that can make supply-chain management decisions<br />

autonomously.<br />

4. Machine learning: The use of machine learning and AI<br />

systems are powerful tools for precision manufacturing<br />

in the automotive industry. Machine learning systems<br />

assist manufacturers in detecting anomalies and<br />

improving designs. In the automotive industry, an<br />

appealing design can increase sales by over 30%.<br />

Machine learning can predict the popular aesthetic<br />

appeal and generate alluring and innovative designs.<br />

5. AI customer experiences: <strong>Automotive</strong> manufacturers<br />

have recently been relying on artificial intelligence<br />

to improve customer experiences. AI can provide<br />

customers with virtual sales assistants. AI learns from<br />

past purchases and customer interactions to provide<br />

tailored insight to each customer based on their needs.<br />

The increased adoption of AI among manufacturing<br />

companies allows companies to use data from prior<br />

interactions to predict market forecasts.<br />

As the automotive industry continues to expand,<br />

manufacturers should be aware of the increasing use<br />

of AI, machine learning, and automation leaders in the<br />

automotive industry are using. “Smart” manufacturing is<br />

prevalent throughout the manufacturing lifecycle, from<br />

supply chain to customer services. Manufacturers looking<br />

to remain competitive should remain up to date on the<br />

rapidly progressing uses of digitization and AI in the<br />

sector.<br />

<strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong> 19

Opinion<br />

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

How Kenya can fast-track its<br />

automotive manufacturing<br />

growth<br />

Aurthor: JOHN YATOR - the National Chairman - of the Kenya Auto Bazaar Association.<br />

Vehicle manufacturing in Kenya faces numerous challenges that have<br />

significant implications for its growth and long-term viability. By<br />

addressing these challenges, which span various facets of the industry,<br />

and their interplay, Kenya can pave the way for a more robust and<br />

sustainable automotive manufacturing.<br />

Infrastructure<br />

The infrastructure challenges are diverse and multifaceted. First, the distances<br />

between manufacturing centres and assembly points are considerably posing<br />

logistical challenges. These distances not only lead to increased transportation<br />

costs but also result in delays in the supply chain due to longer transit times.<br />

Secondly, the sector faces location challenges due to the lack of a manufacturer<br />

database. This is a significant hurdle that arises from the absence of a<br />

comprehensive database for manufacturers in the country.<br />

Assemblers lack access to crucial information about who is producing what and<br />

at what capacity. This complication further muddles the process for potential<br />

investors who need to estimate the local capacity in relation to tax incentives<br />

and to assess suitable assembly points. The absence of accurate and up-to-date<br />

information creates obstacles in efficient decision-making and optimal site<br />

selection.<br />

Supply chain<br />

The challenges within the supply chain of the vehicle manufacturing industry<br />

in Kenya are substantial and complex. Dependence on imported raw materials<br />

and components exposes the industry to an array of vulnerabilities, which can<br />

result in significant supply chain disruptions.<br />

These disruptions may arise from fluctuations in currency exchange rates,<br />

customs delays, and global shocks, such as geopolitical conflicts or trade<br />

disputes.<br />

Furthermore, the high transportation costs associated with importing these<br />

materials contribute significantly to the overall manufacturing expenses.<br />

A potential solution involves the development and utilisation of local raw<br />

materials for the production of parts and components. By shifting toward a<br />

strategy of sourcing materials domestically or regionally, the industry can<br />

insulate itself from the risks associated with international currency fluctuations<br />

and customs delays.<br />

This transition would not only decrease the industry's reliance on imported<br />

materials but also promote the use of local manpower, creating a positive<br />

impact on employment opportunities.<br />

20 <strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong>

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

<strong>Automotive</strong> Industry<br />

An automobile manufacturer's assembly line. PHOTO | SHUTTERSTOCK<br />

Economic factors<br />

Currency instability and fluctuations significantly impact<br />

the cost of imported materials, leading to unpredictable<br />

manufacturing costs. High inflation rates further<br />

strain production costs, making it difficult to maintain<br />

competitive pricing.<br />

Moreover, the economic landscape is complicated by the<br />

dynamic preferences of the main franchise holders in<br />

Kenya. These entities often favour importing components<br />

manufactured by their source suppliers, arguing that<br />

locally produced parts do not meet their stringent<br />

standards.<br />

This situation emphasises the need for more<br />

comprehensive solutions such as advocating for Kenya's<br />

accession to the UN 1958 Agreement which promotes<br />

standardisation and harmonisation in the industry. Kenya<br />

should additionally become a contracting party.<br />

Such changes can potentially enhance the<br />

competitiveness of locally manufactured vehicle parts<br />

and components and in turn, support the in-use fleet<br />

and enable the surplus to be exported to the region and<br />

globally to other manufacturers, thereby contributing to<br />

economic growth and self-reliance.<br />

Simultaneously, this approach would help reduce the<br />

industry's reliance on imported parts and foster a more<br />

sustainable and resilient vehicle manufacturing sector.<br />

This shift toward local content not only bolsters the<br />

industry but also contributes to the overall economic<br />

well-being of the nation.<br />

Regulatory challenges<br />

Navigating the regulatory landscape within Kenya's<br />

vehicle manufacturing sector presents various<br />

challenges. The presence of a complex regulatory<br />

environment characterised by bureaucratic hurdles<br />

and ambiguous policies poses significant obstacles for<br />

potential investors looking to enter the sector.<br />

The lack of clear guidelines and predictable procedures<br />

can deter investment and hinder the growth of the<br />

industry. Ensuring compliance with safety and emission<br />

standards further exacerbates these challenges,<br />

especially in the absence of robust enforcement<br />

mechanisms.<br />

Further, the absence of a streamlined approach to<br />

standards enforcement can lead to lapses in vehicle<br />

safety and emissions controls. In some instances, the<br />

development of policies may favour specific players<br />

within the motor industry, potentially creating an uneven<br />

playing field that is not conducive to the overall well-<br />

<strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong> 21

Opinion<br />

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

being of the nation's transportation ecosystem.<br />

To address these challenges and promote a more<br />

efficient and effective regulatory framework, the<br />

establishment of a central regulatory authority is crucial.<br />

This entity would oversee, maintain records, and regulate<br />

the entire spectrum of the motor industry, spanning<br />

from parts and equipment manufacturing, vehicle<br />

assembly to vehicle imports, sales, all aspects of training,<br />

roadworthiness assessments, accident investigation, and<br />

finally, prosecution.<br />

The current fragmentation among multiple agencies,<br />

such as the Kenya Bureau of Standards, the National<br />

Environmental Authority, the National Transport and<br />

Safety Authority, the Anti-Counterfeit Authority, and<br />

the Kenya Police Service, contributes to a disjointed<br />

approach to managing a vehicle's lifecycle. This<br />

complicates efforts to enhance road safety and overall<br />

industry quality.<br />

The accession of the UN 1958 agreement, 1978<br />

agreement, and the creation of a unified authority<br />

would streamline and consolidate the various laws and<br />

regulations into a coherent framework.<br />

This approach not only reduces redundancy and<br />

inefficiency but also enables a more focused effort<br />

to mitigate road accidents, environmental pollution,<br />

consumer safety, and ensure the industry's sustainable<br />

growth.<br />

Skilled labour and training<br />

The shortage of skilled labour, engineers, technicians,<br />

and artisans proficient in vehicle manufacturing and<br />

technology remains a pressing challenge that impacts<br />

the growth trajectory of Kenya's vehicle manufacturing<br />

sector.<br />

The industry's progress is impeded by the scarcity of<br />

individuals possessing the necessary skills and expertise<br />

in vehicle manufacturing and cutting-edge technology.<br />

The absence of a sufficient number of skilled<br />

professionals hampers production efficiency and stifles<br />

innovation. Compounding this challenge is the lack of<br />

comprehensive training programmes that can address<br />

the industry's specific needs.<br />

The absence of structured training opportunities<br />

limits the potential for cultivating a highly skilled<br />

workforce that can effectively drive the sector forward.<br />

Encouragingly, the current shift in the government's<br />

education system to emphasise skill training and the<br />

increased allocation of slots in the Competence-Based<br />

Curriculum system represent significant steps toward<br />

enhancing the skills of students at tertiary colleges and<br />

polytechnics.<br />

This transition equips students with practical skills<br />

that align with the demands of various industries,<br />

including vehicle manufacturing. However, to fully<br />

capitalise on these initiatives, it's essential to establish<br />

clear and well-defined industrial attachment periods.<br />

Providing students with ample opportunities for handson<br />

experience within industrial settings is crucial<br />

for fostering an understanding of how machines are<br />

integrated with human skills.<br />

This practical exposure bridges the gap between<br />

theoretical knowledge and real-world applications,<br />

thereby producing graduates who are better prepared<br />

to contribute effectively to the vehicle manufacturing<br />

industry.<br />

Furthermore, while the presence of skilled labour is<br />

a vital component, it's important to note that merely<br />

having a profusion of skilled labour might not be<br />

sufficient to sustain industrial growth. Equipping<br />

these skilled individuals with modern tooling, project<br />

layouts, and estimated cost structures can significantly<br />

enhance their capabilities and understanding of the<br />

manufacturing process.<br />

This practical exposure allows engineers to gain handson<br />

experience and a tangible feel for the intricacies<br />

of the production process. To further support skill<br />

development and industry growth, the promotion of<br />

cottage industries could be a valuable strategy.<br />

By fostering collaboration between established<br />

industries and the informal jua kali sector, Kenya can<br />

tap into the creativity and innovation that these smaller<br />

enterprises offer.<br />

This collaboration would not only enhance local<br />

content and expertise but also empower small-scale<br />

manufacturers to contribute effectively to the broader<br />

industry ecosystem.<br />

By integrating comprehensive training programmes with<br />

practical exposure to modern tools and processes, and<br />

by fostering synergies between established industries<br />

and smaller players, Kenya can effectively address the<br />

challenge of skilled labour scarcity and cultivate a<br />

workforce that propels the vehicle manufacturing sector<br />

toward sustainable growth.<br />

Developing local supply chains and fostering domestic<br />

manufacturing of parts and components contribute to<br />

economic growth and self-reliance.<br />

Energy supply<br />

Inconsistent and unreliable power supply disrupts<br />

manufacturing processes and increases operational<br />

costs, potentially requiring the utilisation of alternative<br />

22 <strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong>

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

<strong>Automotive</strong> Industry<br />

energy sources.<br />

Remarkably, Kenya's energy mix is composed of<br />

approximately 90 percent green energy sources.<br />

This green energy dominance presents a promising<br />

opportunity for manufacturers seeking to align their<br />

production processes with sustainable practices.<br />

Kenya's potential to emerge as an ideal destination for<br />

producing vehicles with minimal carbon footprints is<br />

substantial.<br />

The prospect of manufacturing zero-emission vehicles<br />

utilising green energy sources becomes attainable,<br />

provided that challenges related to power tariffs and<br />

energy supply stability are fully addressed.<br />

This dominance can be attributed to their affordability<br />

and availability, which often overshadow locally<br />

assembled units. At present, the local assembly line's<br />

annual production capacity stands at 14,000 units.<br />

However, this pales in comparison to the annual<br />

consumption rate of 120,000 units.<br />

To address this imbalance, a systematic approach<br />

to capacity building is essential. Starting with parts<br />

manufacturing to enhance local content, there should<br />

be a strategic plan to incrementally shift the focus to<br />

assembling, thereby gradually reducing the dependence<br />

on fully built imported new and used units.<br />

Market size, competition, and demand<br />

The size of the domestic market might not be large<br />

enough to support sustained vehicle manufacturing<br />

operations, leading to <strong>issue</strong>s with economies of scale.<br />

Consumer preferences and demand for vehicles can be<br />

unpredictable, affecting production planning.<br />

Competition from imported vehicles can pose a threat to<br />

the local manufacturing industry, especially if tariffs and<br />

regulations are not conducive to protecting domestic<br />

producers. Imported second-hand vehicles have a<br />

significant market share, accounting for approximately<br />

85 percent of the market.<br />

Image: courtesy<br />

Image: courtesy<br />

<strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong> 23

Feature<br />

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

Car Accident<br />

Personal injuries<br />

How can I tell if the Insurance Company is<br />

treating me fairly after a car accident?<br />

By Donna Hicks and Dorcas Kang'ereha<br />

Car accidents can be traumatic experiences, and<br />

dealing with insurance companies afterward<br />

can add to the stress. The insurance company’s<br />

main goal is to minimize its financial liability,<br />

which may not always align with your best interests<br />

as the policyholder. “Car accident victims require<br />

empathy besides compensation. In most cases, victims<br />

are left with devastating injuries and loss that may<br />

alter their lives permanently. A little kindness to<br />

such a person might make so much a big difference<br />

besides the compensation, which in most cases are<br />

not commensurate to the injury/loss suffered,” says Mr.<br />

Sospeter Opondo Aming’a, the Managing Partner at<br />

SOKLAW Advocates. As such, it’s essential to understand<br />

your rights and responsibilities as a policyholder<br />

and know how to tell if the insurance company is<br />

treating you fairly. Here’s what you need to know about<br />

determining whether your insurance company is acting<br />

fairly toward you and your claim.<br />

Understanding your insurance coverage after<br />

an accident<br />

Automobile insurance is mandatory in most countries<br />

and is designed to provide coverage for damages and<br />

cars involved in a Fatal accident<br />

26 <strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong>

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

Personal injury claim form<br />

injuries resulting from car accidents. “In a world filled<br />

with unpredictable twists and turns, the necessity of<br />

insurance cannot be overstated,” remarks Ms. Lauretta<br />

Oyile, a Lawyer at Simba & Simba Advocates.<br />

“In the context of a car accident, it may only qualify<br />

for settlement under an insurance policy if three<br />

prerequisites are satisfied. One, the insurance policy<br />

should be valid and active. Two, the accident must have<br />

been an event contemplated under the policy. Three, the<br />

accident must not fall within an exception or have arisen<br />

due to the negligence, carelessness or recklessness of<br />

the insured,” she clarifies.<br />

She further explicates the prerequisites, notwithstanding,<br />

the insured is also required to give notice of the accident<br />

to the insured, furnish particulars in sufficient detail<br />

using the prescribed format and within reasonable<br />

timelines, and substantiate the claim. The law imposes a<br />

duty upon a party who seeks reliance of their statements<br />

as true to give evidence of their truth. Different<br />

insurance companies have formulated claim forms to<br />

enable them reconcile and settle claims. The insured,<br />

is expected to give full particulars of their claim using<br />

those forms. The claim should equally be made within<br />

set timelines provided under the policy or customarily<br />

within twenty-four (24) hours.<br />

"Once the insurer has been supplied with the requisite<br />

information, they may opt to settle the claim out<br />

of court. In the event they do not, the claim may be<br />

subjected to legal proceeding before a court or tribunal<br />

for the determination of their liability. Once liability is<br />

proven, the insurer has an obligation to pay the insured,<br />

the assignees of the insured or Third Party. It is only<br />

upon such payment that the insurer is deemed to have<br />

discharged their obligation and the claim settled," she<br />

compliments.<br />

Your insurance policy will outline the types of coverage<br />

you have, including liability, collision, and comprehensive<br />

coverage. Your insurance policy will also specify your<br />

financial responsibility in the event of an accident,<br />

including your deductible and policy limits. Your<br />

deductible is the amount you pay out-of-pocket before<br />

Car Accident Injuries<br />

your insurance kicks in. Policy limits are the maximum<br />

amount that your insurance company will pay out<br />

for a claim. It’s also important to note that insurance<br />

companies are businesses and their primary goal is to<br />

make a profit. This means that they may try to minimize<br />

payouts or deny claims altogether if they believe it will<br />

benefit their bottom line. If you feel like your insurance<br />

company is not treating you fairly after an accident, there<br />

are steps you can take to protect yourself. “Insurance<br />

policies create certain rights and obligations for the<br />

parties involved. Key among the obligations include the<br />

duty of the insured to disclose all material facts within<br />

their actual and perceived knowledge to the insurer.<br />

Material information is any circumstance that would<br />

influence the judgment of a prudent insurer in fixing the<br />

premium or determining whether they would take up the<br />

risk,” elaborates Ms. Oyile.<br />

Insurance companies are working for their<br />

interests<br />

During the investigation process, it is important to<br />

remember that insurance company partners such<br />

as adjusters and investigators are working for their<br />

interests rather than yours. While they may seem<br />

friendly and helpful on the surface, their ultimate goal<br />

is to minimize payouts on claims. “A fair insurer will<br />

guide an accident victim on the documentation they<br />

require and the process they have to undergo in order<br />

to have their claim settled. A shorter claim settlement<br />

turn- around time will also account for fairness. Many<br />

insurers take accident victims in circles with the excuse<br />

of investigations, even where the facts are straight. Last<br />

but not least, the amount of settlement should also be<br />

reasonable and commensurate with the injuries suffered.<br />

An insurer should not take advantage of the victim’s<br />

desperation to meagerly compensate them,” highlights<br />

Mr. Aming’a. This means that they may use tactics such<br />

as downplaying injuries or damages sustained in an<br />

accident in order to reduce payouts. “The perception is<br />

that insurance companies do not usually want to pay<br />

out their claims. They are believed to utilize loopholes<br />

to latch onto evade liability,” adds Ms. Oyile. They may<br />

also try to pressure you into accepting a settlement<br />

offer that does not fully compensate you for your losses.<br />

Accusations of bad faith can arise when an insurance<br />

company fails to act fairly and honestly toward its<br />

policyholders. Some examples of bad faith accusations<br />

include:<br />

• – Failing to investigate a claim properly.<br />

• – Refusing to pay a valid claim without justification.<br />

• – Delaying payment on a valid claim without<br />

justification.<br />

• – Offering an unreasonably low settlement amount.<br />

• – Misrepresenting policy provisions or coverage<br />

limits.<br />

Recognizing when an insurance settlement<br />

offer is too low<br />

<strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong> 27

Car Accident Injuries<br />

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

Lauretta Oyile, Lawyer at Simba & Simba<br />

Advocates<br />

Gillian Ombogo, Legal Practitioner at Ombogo and<br />

Company Advocates<br />

Sospeter Opondo Aming’a, Managing Partner at<br />

SOKLAW Advocates<br />

When you’re involved in a car accident, one of the most<br />

important things to consider is whether or not the<br />

insurance company is offering you a fair settlement.<br />

But how do you know what a fair settlement offer<br />

looks like? According to Gillian Ombogo, a legal<br />

practitioner at Ombogo and Company Advocates, the<br />

relationship between an insurance company (insurer)<br />

and the policy holder (insured) is in form of a legally<br />

binding contractual agreement, which is the insurance<br />

policy document. Before signing, you ought to read and<br />

understand the fine print of the document and seek<br />

clarification from the insurer on any terms, conditions,<br />

restrictions or limitations that may seem unclear. “This<br />

may sound simple, but is a very important step that<br />

could prevent anguish and loss, in the unfortunate event<br />

of an accident. Having said this, the best way to detect<br />

unprofessionalism from either party to the contract is<br />

when they fail to act in utmost good faith and contrary<br />

to the terms of the policy document,” affirmed Ms.<br />

Ombogo.<br />

Every case is different and there are many factors that<br />

can impact the amount of money you receive. However,<br />

there are some general guidelines that can help you<br />

determine if an offer is too low. Firstly, consider the<br />

extent of your injuries, lost wages, and other damages.<br />

If your needs aren’t met by the settlement offered,<br />

you may need to seek a better offer. It’s important not<br />

to rush into accepting a settlement offer without first<br />

reviewing all the details and ensuring it covers all your<br />

losses. Insurance companies may try to pressure you<br />

into accepting an offer quickly before you have had time<br />

to fully assess your damages and expenses. Insurance<br />

companies are businesses, which means they’re always<br />

looking for ways to save money. One way they do this is<br />

by offering low settlements in hopes that policyholders<br />

will accept them without question.<br />

Seek out a car accident attorney for your case<br />

In conclusion, being involved in a car accident can<br />

be a traumatic experience that can leave you feeling<br />

vulnerable and helpless. It is important to understand<br />

your rights as a policyholder and to know how to<br />

determine if the insurance company is treating you<br />

fairly after an accident. “Even with precautions taken,<br />

there may still be instances where an insurance<br />

settlement offer is too low or unfair. This is where<br />

hiring an experienced car accident attorney becomes<br />

crucial. In this case, you will have the options to seek<br />

out compensation even if the insurance company is<br />

unwilling to settle with you fairly.<br />

Medic applying bandage on the head of victim with serious damages sitting on the driver seat after the<br />

road accident. Providing emergency medical assistance<br />

Woman on a wheelchair with body injuries<br />

28 <strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong>

<strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong> 29

Buses<br />

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

BasiGo has commenced<br />

Manufacturing High-Capacity<br />

Electric Buses<br />

BasiGo bus. PHOTO: COURTESY<br />

E-mobility company BasiGo has announced<br />

the introduction of the E9 Kubwa, a 36-seater<br />

electric bus designed for the Kenyan market,<br />

with plans to have the models manufactured in<br />

Kenya starting later this year. The first two E9 Kubwa<br />

buses have begun pilot testing with existing BasiGo<br />

customers, who include Super Metro, OMA Services,<br />

Embassava, Citi Hoppa, Metro Trans and East Shuttle<br />

plying the Dandora route.<br />

The E9 Kubwa seats 36 passengers with the option of<br />

18 standing passengers. BasiGo has designed the E9 for<br />

urban bus operations where buses typically hold 33 to<br />

41 passengers. The bus can be recharged in two hours<br />

at BasiGo’s DC fast charging depots and can drive up to<br />

400km per day with a mid-day charge.<br />

Like the K6 Electric Bus introduced by BasiGo last<br />

year, the E9 Kubwa features an upgraded passenger<br />

experience with leather seats, WiFi, CCTV cameras, and<br />

USB phone charging at every seat.<br />

“We are proud to deliver the E9 Kubwa, an electric bus<br />

designed specifically for Nairobi’s PSV sector,” said Mr<br />

Jit Bhattacharya, BasiGo CEO. “This is a state-of-the-art<br />

electric bus that is cleaner for Nairobi, safer and more<br />

comfortable for passengers, and better value for PSV<br />

Operators.”<br />

Mr Bhattacharya through BasiGo’s Pay-As-You-Drive<br />

financing model, they have made this bus accessible<br />

to all bus operators in the capital city. “And most<br />

importantly, every E9 Kubwa delivered by BasiGo will be<br />

manufactured here in Kenya starting later this year,” he<br />

added.<br />

Through its Pay-As-You-Drive financing model, BasiGo<br />

is offering the E9 Kubwa for a purchase price of Ksh7.5<br />

Million and a mileage-based subscription of Ksh40 per<br />

kilometre for charging and maintenance provided by<br />

BasiGo.<br />

BasiGo has also announced a new lease option, enabling<br />

owners to adopt the electric bus for a much lower<br />

upfront cost. Each E9 Kubwa electric bus is expected to<br />

help Kenya reduce diesel consumption by 20,000 litres<br />

per year while also reducing CO2 emissions by 50 tonnes<br />

per year.<br />

30 <strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong>

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

Buses<br />

Finnish firm unveils bus booking<br />

service in Kenya<br />

AfriKonekta , an online bus booking platform<br />

has unveiled its services in the Kenyan market,<br />

setting the stage for intensified competition<br />

with the local players, that includes Buupass<br />

and Quickbus. The Helsinki-based mobility platform<br />

targets long-distance bus operators in Nairobi by<br />

enabling travellers to reserve seats online.<br />

The platform has integrated parcel delivery services<br />

targeting small and medium enterprises, online<br />

merchants and individuals.<br />

“Our commitment is to deliver a revolutionary means of<br />

travel that makes long-distance travel in <strong>Africa</strong> a techpowered<br />

and attractive option. We have studied the best<br />

practices of global platforms, added our comprehensive<br />

expertise of the long-distance bus industry, and adapted<br />

the service to the <strong>Africa</strong>n market needs,” said Tichaona<br />

Dande, chief executive at Afrikonekta.<br />

“We are looking to sign up more players and launch<br />

Image: AfriKonekta<br />

operations in Tanzania, Uganda, Zambia, and Rwanda by<br />

early next year,” he said.<br />

During its six months pilot phase, in Kenya, the company<br />

sold 45,000 tickets as it sought to understand the<br />

specific needs of Kenyan operators as well as local<br />

passengers. The startup says the move aims to expand<br />

its presence in <strong>Africa</strong> and strengthen its inventory of<br />

partner operators.<br />

GABS plans to procure 60 electric<br />

buses per year for Cape Town<br />

The public transport operator Golden Arrow Bus<br />

Services (GABS) in the South <strong>Africa</strong>n city of Cape<br />

Town is planning to gradually electrify its fleet of<br />

1,100 diesel buses. From 2024, it will replace 60<br />

buses per year with electric buses.<br />

The decision was preceded by tests with two electric<br />

buses from Chinese manufacturer BYD. Therefore,<br />

GABS is now planning to convert its entire bus fleet to<br />

electric vehicles. The bodies of the electric buses will<br />

be assembled locally on the basis of imported chassis.<br />

Whether the chassis will come from BYD is not explicitly<br />

mentioned, but it is likely.<br />

With an integration rate of 60 electric buses per year, the<br />

conversion of the fleet would take about 18 years. The<br />

aforementioned case study by Green Cape estimates the<br />

annual investment volume at about 324 million to 486<br />

million rand (about 15.4 to 23.2 million euros).<br />

GABS plans to fuel the buses with electricity from<br />

renewable sources – either locally produced or from the<br />

Image: Courtesy<br />

grid. Currently, the operator has installed grid-connected<br />

PV systems with an installed peak power of 1.7 MWp on<br />

six of its bus depots in Cape Town. However, if all 1,100<br />

buses were theoretically to be charged with solar power<br />

in the future, 80 to 100 MW would be required.<br />

According to media reports, the City of Cape Town,<br />

which wants to use GABS’ project for guidance, is also<br />

considering the procurement of electric buses for its<br />

MyCiti fleet, which consists of 374 buses.<br />

<strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong> 31

Electric Vehicle<br />

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

Automakers chart path for electric<br />

vehicles adoption, development<br />

By Benjamin Alade and Tobi Awodipe<br />

Stakeholders and local automakers are<br />

championing the adoption of Electric Vehicles<br />

(EVs) usage in Nigeria as an alternative to<br />

petrol-driven vehicles to cushion the effects<br />

of fuel subsidy removal on citizens as well as promote<br />

clean energy. They said that despite the challenges<br />

surrounding the operations of EVs in the country,<br />

Nigeria has the potential to tackle them if collaboration<br />

and long-term planning with relevant stakeholders is<br />

followed.<br />

Coming together to brainstorm at an EV Hackathon,<br />

organised by Microsoft Garage, several ideas were<br />

proffered by stakeholders on how to bring the idea to<br />

fruition and successfully transition from petrol-driven<br />

vehicles to EVs.<br />

At the event, U.S. Undersecretary of Commerce for<br />

International Trade, Marisa Lago said not only are they<br />

committed to combating the climate crisis and view EVs<br />

as critical technologies to facilitate the clean energy<br />

transition, she said more importantly, new jobs will be<br />

created. Revealing that U.S. companies are eager to find<br />

opportunities to expand business relationships with<br />

Nigerian counterparts, she added that transitioning<br />

to EVs present a tremendous opportunity to drive<br />

innovation in the automotive sector and provide<br />

good-paying jobs for Nigerians, while simultaneously<br />

addressing climate change and reducing dependence on<br />

fossil fuels.<br />

She went on to reveal that supportive infrastructure is<br />

crucial for widespread adoption of EVs. “The availability<br />

of charging stations is a fundamental aspect of the<br />

enabling environment for an EV industry to thrive. But,<br />

there is a chicken-and-egg conundrum since companies<br />

are not likely to invest in charging infrastructure until<br />

there’s a critical mass of EV drivers. Also, individuals<br />

will be reluctant to buy EVs until there is a reasonable<br />

recharging infrastructure.”<br />

Also pointing out that the cost of EVs, which is still<br />

relatively high compared to conventional vehicles,<br />

remains a barrier, and wondered if the costs could<br />

be reduced through local manufacturing, targeted<br />

investment in R&D or collaborations with industry<br />

leaders from around the world to achieve economies of<br />

scale.<br />

“Also, to attract both domestic and foreign players<br />

in the sector, it will be critical to have a supportive<br />

regulatory framework of consistent policies, standards<br />

and regulations that are aligned with international best<br />

practices that encourage investment and innovation.<br />

In addition to advancing EV technology, we must equip<br />

the workforce with the education and skills necessary to<br />

support the growth of the industry. A skilled workforce<br />

can fill the employment opportunities generated by the<br />

growth of the sector, positioning Nigeria as a regional<br />

hub for manufacturing, maintenance and technology<br />

development.”<br />

Principal Program Manager, Microsoft Garage, Soromfe<br />

Uzomah, said they are looking to drive innovation<br />

and there is no reason why EVs are not in Nigeria<br />

yet, adding that if the country wanted EVs as at five<br />

years ago, it would have happened. Head of Corporate<br />

Communications, Innoson Group, Cornel Osigwe, said<br />

they paused producing EVs because of the unavailability<br />

of batteries, which he said remain very expensive.<br />

He, however, said companies could come together to<br />

produce batteries locally since all the raw materials are<br />

available in Nigeria. Osigwe said the government needs<br />

to get involved in battery production and provide an<br />

enabling environment for the market to thrive.<br />

Scania Representative, Abimbola Adekoya, said a lot is<br />

happening in the various segments of the EV value chain<br />

in Nigeria. “We need to be deliberate in recognising and<br />

relying on strengths, collaborating and position as a<br />

block to strongly influence policy shaping in a manner<br />

that will positively impact the EV space in Nigeria.<br />

An attendee present stated that some people have<br />

argued that the country suffers from poor power but<br />

wondered how many times EV users need a high-power<br />

charge. “I have been using an EV for a decade and I’ve<br />

only had a high-power charge 12 times in that period.<br />

The solutions are there. A four-hour charge will take you<br />

over 300 km.”<br />

Senior Vice President of Corporate Services, Oando Clean<br />

Energy, Alero Balogun, said the cost of financing EVs<br />

would be a challenge but investor finance is available.<br />

Chairman, Codes and Standards Committee, Nigerian<br />

Institution of Mechanical Engineers (NIMech), Seun<br />

Faluyi, said it is more practical to expect that mass<br />

32 <strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong>

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

<strong>Automotive</strong> Camera<br />

adoption of EVs will be more driven by cost avoidance<br />

rather than policies in Nigeria and lowering the cost<br />

of development and deployment of EV production and<br />

infrastructure will be a key success factor. He said the<br />

most likely starting point where impact and progress<br />

can be made will be the first mile-last mile segment of<br />

the transport industry in urban centres, which includes<br />

motorcycles, tricycles and mini-buses.<br />

Faluyi stated that acceptance and adoption of EV<br />

passenger cars will lag if the cost of transition to<br />

EVs is high and make it uncompetitive with Internal<br />

Combustion Engine (ICE) cars and standards for the<br />

manufacturing and production of EVs still need focused<br />

development.<br />

The EV market is at the intersection of the<br />

transportation, automobile and power industries.<br />

Standardisation for charging, regardless of geographical<br />

location or electricity distribution company connected,<br />

will need to be talked about in terms of rates, measuring<br />

and monitoring charging activity, among others.<br />

Chief Executive Officer/Founder, SWAP, Seyi Ògúntunde<br />

said though the major <strong>issue</strong> is cost, as drivers don’t have<br />

the capital to purchase brand new vehicles, possibilities<br />

abound and people have started embracing it. “We set<br />

up a mini charging station around Berger where we have<br />

most of the drivers. They pick up the charged batteries<br />

in the morning and return it at night. The adoption rate<br />

has increased, because it’s easier for them to drive and<br />

more cost-effective. Now, most of them are coming to us,<br />

asking to convert their vehicles because they’re saving<br />

money on fuel and maintenance.”<br />

Head Mobility, Renewable Energy and Mobility, Sterling<br />

Bank Plc, Akin Akingbogun, said EVs are driven by three<br />

separate sectors of the economy: automobile, road<br />

infrastructure and energy/power. He said they would<br />

focus on partnerships that would convert ICE vehicles<br />

to EVs and stressed the need for the availability of<br />

charging stations across the country. He added that<br />

a major concern with EVs is standards. “How do we<br />

ensure standards are met and kept across the board?<br />

Standardisation is very important because users should<br />

be able to move across the country and region and be<br />

able to charge anywhere.”<br />

President of the Renewable Energy Association of<br />

Nigeria, Ayo Ademilua, said they intend to partner with<br />

stakeholders to roll out charging stations across the<br />

country, especially standalone charging stations. “We<br />

know affordability is a major <strong>issue</strong> so we are proposing<br />

pay-as-you-go platforms. We want the vehicles to be<br />

given out on leases while users pay monthly.<br />

It will also have an app that shows charging stations<br />

in real-time so that users know where next they can<br />

charge.” He revealed that many players are launching<br />

two and three wheelers later this year and need to<br />

partner.<br />

Chairman/Chief Executive Officer, SAGLEV Inc., Dr Sam<br />

Faleye, said the gathering was critical in pushing the<br />

growth of EV adoption in Nigeria.<br />

Faleye, whose company does business in Nigeria as<br />

SAGLEV Electromobility Nigeria Limited, stated that they<br />

are accelerating the adoption of zero-emission vehicles<br />

from ICE Vehicles by collaborating with fleet, rideshares<br />

and personal vehicle operators leveraging its experience<br />

in the entire eMobility value chain.<br />

At the end, the ideas put forward for the hackathon<br />

include a pay-as-you-go platform for EV cars, charging<br />

station location apps, capacity building platform, battery<br />

design, fintech financing solution for the full purchase of<br />

EVs, database for the EV space, tech solution to manage<br />

driver behaviour and market education.<br />

Others include IOT on devices for ‘state of charge’,<br />

rideshare, charger stations, curriculum development for<br />

schools to support ecosystem, tracking energy assets,<br />

combining on-grid and off-grid solutions, a pricing<br />

model that works, leveraging already existing energy<br />

distribution networks as electricity charging stations and<br />

standard regulation framework development.<br />

<strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong> 33

Market report<br />

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />




The transport sector is one of the most significant<br />

contributors to GHG emissions globally, owing<br />

to which many countries worldwide are focusing<br />

on converting the existing fleet of commercial<br />

vehicles to zero-emission electric vehicles. Introducing<br />

electric buses is expected to change global mass transit<br />

in the coming years by improving air quality, reducing<br />

noise levels, and increasing fuel efficiency. However,<br />

the industry would face challenges such as high costs<br />

for developing charging infrastructures. Unlike many<br />

developed countries, the lack of charging infrastructure<br />

is one of the major challenges in developing countries’<br />

electric bus market growth. Also, battery technology/<br />

range and cost are the other restraining factors limiting<br />

the demand for electric buses.<br />

In 2022, the global bus market crossed 220,000 units,<br />

where electric buses share was slightly more than<br />

25%. The electric bus share in the global bus market<br />

was ~20% in 2019. The growth in electric bus demand<br />

is due to two reasons – growing support from the<br />

government in terms of incentives & tax exemptions<br />

and aggressive targets set by countries to achieve 100%<br />

fleet electrification. China’s contribution to the global<br />

electric bus market in 2022 was >80%. According to an<br />

analysis by MarketsandMarkets, the global bus market<br />

is projected to cross 260,000 units by 2030, to which<br />

electric buses will contribute more than 55%.<br />

China: The all-time leader<br />

The overall China bus market contributed to >40% of<br />

the global bus market, whereas China’s electric bus<br />

demand was >80% of the global electric buses in<br />

2022. The EV subsidies in China were set to expire in<br />

2022. However, in June <strong>2023</strong>, the Chinese government<br />

announced a substantial tax incentive package of 520<br />

billion yuan (~USD 72 billion) over the next four years.<br />

Under this extended policy, New Energy Vehicles (NEVs)<br />

that are purchased in 2024 and 2025 will be eligible for<br />

a complete exemption from purchase tax (a maximum<br />

of 30,000 yuan (~USD 4,150) per vehicle). For 2026 &<br />

2027, this exemption will be reduced by half (5,000 yuan<br />

(~USD 2,000)). This extension is expected to not only<br />

boost the sale of electric vehicles but also expected to<br />

boost the Chinese economy after the pandemic.<br />



Heavy-duty vehicles (lorries, buses, and trucks) contribute<br />

to >25% of GHG emissions from road transport and<br />

34 <strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong>

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

Electric Bus<br />

FIGURE 1 GLOBAL BUS MARKET SHARE BY PROPULSION (INCLUDING CHINA), 2019–2030. Source: Secondary Research, MarketsandMarkets<br />

Analysis<br />

more than 6% of total EU GHG emissions. Considering<br />

the same, European Commission proposed revising the<br />

Regulation on CO2 emission standards for heavy-duty<br />

vehicles. Previous targets were to reduce CO2 emissions<br />

to 15% by 2025 and 30% by 2030; however, with the new<br />

proposed targets, these are revised to a 45% reduction in<br />

CO2 emissions by 2030. These aggressive targets would<br />

help to achieve the EU’s 2050 climate neutrality target.<br />

To accelerate the faster deployment of zero-emission<br />

buses in cities, the EU also proposed to make all new city<br />

buses zero-emission as of 2030.<br />

The European bus market crossed 19,000 units sale<br />

in 2022, representing ~9% of the global bus market.<br />

Europe’s electric buses contributed to 22% of the total<br />

European bus market, which according to an analysis by<br />

MarketsandMarkets, is projected to cross 50% by 2026.<br />

The European region is expected to achieve a >90%<br />

electrification of buses by 2030.<br />

Both BEV and PHEV propulsions presently dominate the<br />

electrification in the European bus market. However, with<br />

time, the battery electric buses would have an edge in<br />

the European electric bus market. Also, the Transit and<br />

City buses largely dominate the European bus market,<br />

contributing to >65% of the total European bus market.<br />

Considering the new targets to replace all existing<br />

city buses with electric buses, this segment would<br />

achieve 100% electrification by 2030. Alternatively, the<br />

electrification in the other bus applications, such as<br />

coaches, & midi buses, would be comparatively lower.<br />

The current European bus requirement is in 3 types –<br />

9m (around 60 pax), 10-11m (75-85 pax), and 12m (100<br />

FIGURE 2 China Vs Global Electric Bus Market, 2022<br />

Source: Secondary Research, MarketsandMarkets Analysis<br />

<strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong> 35

Market report<br />

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

Source: Secondary Research, MarketsandMarkets Analysis<br />

pax). Considering the electrification of the buses, the<br />

ideal customer requirement can be the same as current<br />

ICE buses. However, electric buses’ most significant<br />

challenge is increasing drive range without decreasing<br />

passenger capacity. For instance, Citaro Diesel has a<br />

passenger capacity of ~103 with a driving range of ~400<br />

km. But when replaced with NMC batteries (say 198kWh),<br />

the driving range decreases to 90% of the European electric<br />

bus market in 2022. Below is a quick overview of the key<br />

propulsion technologies available with these players.<br />



The Indian bus market crossed the 70,000 units mark in<br />

2022, of which the electric buses were ~3%. The electric<br />

bus share in the total Indian bus market is expected to<br />

cross 20% by 2030. The Indian electric bus market is<br />

driven by central and state governments’ initiatives to<br />

promote electric commercial vehicles. In April 2019, the<br />

Government of India approved the Phase II of Faster<br />

Adoption and Manufacturing of (Hybrid &) Electric<br />

Vehicles in India (FAME) Scheme with an outlay of Rs.<br />

10,000 Crore for three years. This phase aims to generate<br />

demand by supporting 7,000 e-Buses, 500,000 e-3<br />

Wheelers, 55,000 e-Passenger Cars (including Strong<br />

Hybrid), and 1 million e-2 Wheelers. The scheme offers<br />

INR 20,000 subsidy per kWh for e-buses.<br />

Using this subsidy, the state governments have targeted<br />

to convert their existing fleets to electric. Below is<br />

the list of orders for electric buses from a few state<br />

governments:<br />

Most of these electric buses are transit/city buses, and a<br />

few are midi-buses. The only challenge with the Indian<br />

bus industry is that it heavily depends on China and<br />

foreign OEMs for battery technology. Also, the market<br />

is diversified with a few Indian OEMs like Tata Motors,<br />

Ashok Leyland (Switch Mobility), and PMI Electro<br />

Mobility. These three players contributed to ~40% of<br />

the electric bus market in India in 2022. BYD also has a<br />

TABLE 2 electric bus orders received by OEMs in india<br />

Source: Secondary Research, MarketsandMarkets Analysis<br />

36 <strong>Africa</strong> <strong>Automotive</strong> News l <strong>2023</strong>

<strong>July</strong>-<strong>August</strong> <strong>issue</strong> l <strong>2023</strong><br />

significant presence in India, with >25% market share in<br />

2022. Below are the future orders that these OEMs have<br />

bagged:<br />

The Indian electric bus market in the future will be<br />

driven by Smart City projects, overall improvements in<br />

the road infrastructure, and investments in charging<br />

infrastructures. However, challenges such as raw material<br />

sourcing (especially for batteries), technology, and supply<br />

chain disruptions will still haunt the Indian electric bus<br />

industry for the next few years.<br />

North America:<br />

North America’s bus market accounted for 10% of the<br />

global bus market in 2022. Bus electrification in the<br />

region is at a nascent stage, where the contribution of<br />

electric buses in the total North America bus sales was<br />

~4% in 2022. However, according to MarketsnandMarkets<br />

estimations, electric buses would contribute to >60% of<br />

the total bus sales by 2030. This growth is mainly due to<br />

government support in incentives and exemptions.<br />

For instance, On June 26, <strong>2023</strong>, Federal Transit<br />

Administration (FTA) announced a funding of USD 1.69<br />

billion for Low- and No-Emission Grants for Buses and<br />

Bus Facilities project selections. This would support 130<br />

projects for people and communities in 46 states and<br />

territories. Also, EPA (Sept 2022) announced that it would<br />

Electric Bus<br />

double the funding awarded for clean school buses.<br />

The 2022 rebate program will fund ~2,500 school bus<br />

replacements.<br />

Transit/City Buses and then school buses dominate<br />

the North American market. These two applications<br />

would have the highest potential for electrification. The<br />

number of electric buses in operation is growing rapidly,<br />

and government incentives are helping to make them<br />

more affordable. As the market grows, more innovative<br />

technologies and government incentives to make electric<br />

buses more affordable and attractive to transit agencies<br />

can be seen.<br />

The future of electric buses is bright. With continued<br />

investment in research and development, the technology<br />

of electric buses will continue to improve. As the cost of<br />

electric buses comes down and charging infrastructure<br />

becomes more widespread, there will be more electric<br />

buses on the roads in the future.<br />

TABLE 2 electric bus orders received by OEMs in india<br />

Source: Secondary Research, MarketsandMarkets Analysis<br />

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<strong>Africa</strong> <strong>Automotive</strong> prides itself to be the ONLY <strong>Africa</strong>’s leading and MOST<br />

authoritative magazine for the automotive industry in <strong>Africa</strong> with<br />

printed copies for the automotive industry decision makers in both<br />

government, NGO’s and private sector. The Bi-monthly magazine offers<br />

cost effective advertising services that get results and improves growth<br />

in the auto B2C and B2B sector, keeping an eye on latest technologies in<br />

<strong>Africa</strong> and across the world, the magazine predominately covers the<br />

developments in the <strong>Africa</strong> auto industry.<br />

Contact us on:<br />

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