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Chinese car manufacturers invest in Africa

Chinese car manufacturers invest in Africa

Publicerat av Cecilia Helland Friday, 30 March 2012.

Foton Motor Group, the Chinese car manufacturer, builds a new factory in Nairobi in order to try to increase its market share in Kenya and East Africa.

The factory, which cost 50 million U.S. dollars, will produce cheaper cars for the growing middle class that show an increasing demand for new vehicles.

With the local car production, Foton Motor Group will avoid paying a custom duty of 25 percent for imported vehicles and the next step will be to expand the reseller network on the market with 130 million inhabitants.

The automotive industry in Kenya and East Africa has long been dominated by the carmakers Toyota and General Motors.

Publicerat av

Cecilia Helland

nordafrika

Time in Tunisien, Nordafrika

TN - Time