Africa Automotive Nov-Dec digital issue 2021 by Africa Automotive News

November-December issue l 2021

Africa Automotive

November-December issue 2021

Volume 3 issue no. 18

The Role of Automotive Tires and Wheels

In this issue...... Morocco Becomes Africa’s Auto Manufacturing Hub....pg 13

Opinion: Unlocking Africa’s automotive aftermarket....pg 16

Future of the Automotive World in Kenya....pg 10

Africa Automotive News l 2021

November-December issue l 2021

Africa Automotive News l 2021

Content

November-December issue l 2021

Contents Current Issue

The Role of Automotive Tires and Wheels & many more

REGULARS News Briefs

Events

Innovation

Opinion

Safety Tips

10 25

Managing Editor Francis David

Editor-in-Chief

COVER STORY

Editor

The Role of Automotive Tires and Wheels

Augustine Mwita

Dorcas Kang’ereha

Writer

Violet Ambale Harriet Mkhaye Irene Joseph Innocent Momanyi

Sales Executives

Features

Future of the Automotive World in Kenya Aftermarket guidelines beneficial to automotive industry How India’s largest commercial vehicle maker is conquering Africa

East Africa

Jimmy Mudasia Lydia Kamonya Caiser Momanyi Vincent Murono Sheila Ing’ayitsa

South Africa

Morocco Becomes Africa’s Auto Manufacturing Hub How often and how much air should I put in my tyres? How to Stay Safe in Traffic

Paul Nyakeri Sean Masangwanyi Lisa Brown Thembisa Ndlovu

Nigeria

Emelda Njomboro Uche Maxwel

Designed & Published by: Nailex Africa Publishing P.o.Box, 52248, 00100

Nairobi, Kenya.

ADVERTISER'S INDEX Branda......................................................................................IFC Duxone......................................................................................IBC Champion.................................................................................OBC Piaggio.....................................................................................pg 15 FKG Bearing...........................................................................pg 17 TATA Motors............................................................................pg 20 MRF Tyres.................................................................................pg 24 Oryx Energies..........................................................................pg 29 Williams Racing........................................................................pg 31 Letstrack....................................................................................pg 33

Disclaimer:

Nailex Africa Publishing makes every effort to ensure the accuracy of the contents of its publications, but no warranty is made to such accuracy and no responsibility will be borne by the publisher for the consequences of actions based on information so published. Further, opinions expressed on interviews are not necessarily shared by Nailex Africa Publisher. 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 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

Africa Automotive News l 2021

News

November-December issue l 2021

Kenya Seeks to Double Local Car Assembly By 2025

enya is banking on its national automotive policy to bolster the industry, seeking to double production in the next four years and reduce dependency on second-hand imported vehicles. The policy, introduced in 2019 and adopted by the Cabinet, envisions increasing the number of vehicles manufactured locally and creating more jobs in vehicle assembly. The policy provides an enabling environment for automotive industry players to reach their full potential and position Kenya as a major automotive manufacturer, said Industrialisation Trade and Enterprise Cabinet Secretary Betty Maina. She spoke at an Associated Vehicle Assemblers (AVA) plant in Miritini, Mombasa County, noting that the automotive sector is critical in Kenya’s plans to increase manufacturing and that President Uhuru Kenyatta is passionate about it. “This policy has the ambition of creating a very vibrant auto sector in Kenya. It used

to be there a while back but it has faced challenges, especially with the importation of used vehicles,” she said. “What we are witnessing is a turnaround in factories like AVA, and it gives us confidence that Kenyans can find quality products available locally.”

The policy targets challenges such as lack of dedicated legal, institutional and regulatory frameworks, imports of parts by franchise holders instead of procuring from local parts manufacturers, and an influx of used vehicles. It also seeks to make the domestic automotive industry more competitive.

Golden Arrow introduces electric buses to its fleet in Cape Town

he Golden Arrow Bus Services (Gabs), a South African based company has inaugurated two new buses in Cape Town. The special feature of these public transport vehicles is that they run entirely on electric batteries. Golden Arrow Bus Services (Gabs) is breaking new ground in public transport in South Africa. The company has put two electric buses on the road in Cape Town. This was done at a ceremony recently in the presence of Daylin Mitchell, the Western Cape Minister of Transport and

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Public Works. The new buses, which are being rolled out, were developed in a partnership between Chinese car manufacturer BYD and uYilo, which is providing the financial part. The launch of the new buses was preceded by a one-year test period. “During the first few months, we tested the buses in various circumstances, without passengers. The aim was to find out exactly how the vehicles would perform before integrating them into our operations. The testing of these vehicles has been a joy for everyone involved in the project. Every time we do

a new test or reach a new milestone, the excitement level increases,” says Gideon Neethling, an engineer at Gabs. The new electric buses now run between the suburb of Retreat and the city centre of Cape Town. The service includes an electronic smartcard fare system, which is already in use in several sub-Saharan African capitals, including Yaoundé in Cameroon and Kigali in Rwanda with the Tap & Go system. The electric buses are part of a fleet of 1,000 buses belonging to the provincial Ministry of Transport and Public Works, managed by Gabs.

News

November-December issue l 2021

Nissan SA trains technicians for new Ghana plant

welve Ghanaian technicians have wrapped up their threemonth training course at the Nissan Rosslyn plant on the assembly of the new Navara pick-up, in anticipation of the opening of a Nissan plant in their home country next year. The first Navara pick-ups for customers are expected to start rolling off the assembly line at Nissan South Africa from the end of this month. The vehicle will go on sale across numerous African markets in the months that follow. “The production of a vehicle is intricate, so the training course we have been offering will not be the end of our work in supporting the Ghanaian team’s capabilities,” says Nissan South Africa plant director Shafick Solomons. “It’s one of the many steps we are taking to support a sustainable relationship between South Africa and Ghana going forward.

“Now we are laying the groundwork to do just that in Ghana, as we help the people and government of Ghana begin to realise their dream of creating a sustainable automotive industry in their country.

“We will continue to share resources and knowledge, as well as training to make sure that the Ghanaian team is as agile and efficient as any team in the rest of the world adhering to Nissan’s global production standard – the Nissan Production Way.”

“We have always said that we wanted to work with countries on the continent who want to partner with us in this regard,” adds Whitfield. “We were the first movers in Nigeria and we are looking at other countries in Africa where there is similar potential.

“This is a wonderful moment for us as a global company with incredible African roots,” says Nissan Africa MD Mike Whitfield.

The Navara production facility in Ghana is located in the capital, Accra, and will be operated by Japan Motors Trading Company (JMTC).

“We set out to build a vehicle in Africa, for Africa, by Africans with the Navara, which we are about to achieve from our Nissan South Africa plant.

The plant will produce Navaras from semi-knockdown kits supplied from the Rosslyn plant.

Nigeria’s Autochek acquires Cheki Kenya and Uganda from ROAM Africa

igerian automotive tech company Autochek has announced the acquisition of Cheki Kenya and Uganda from Ringier One Africa Media (ROAM) for an undisclosed amount. Per a statement, Autochek will finalize the deal in the coming weeks. With the acquisition, Autochek completes its expansion into East Africa and follows the first acquisition made almost a year ago when it acquired both Nigeria and Ghana businesses from Cheki. In 2010, Cheki launched as an online car classified for dealers, importers and private sellers in Kenya. The startup, headquartered in Nairobi, expanded operations to Nigeria, Ghana, Tanzania, Uganda, Zambia and Zimbabwe. Cheki got acquired by ROAM in 2017 and joined a list of online marketplaces and classifieds in its network like Jobberman. Per ROAM’s website, Cheki still has operations in Tanzania, Zambia and Zimbabwe. However, these markets are quite inactive so it is safe to say Autochek has fully acquired all of Cheki’s main operations. Cheki Kenya is an exciting market for both

parties. The subsidiary has 700,000 users and lists over 12,000 vehicles monthly. It also claims to have grown 80% year on year in the last two years, making it a valuable asset for Autochek’s plan for regional expansion. “Cheki Kenya has always been sort of the crown jewel,” Autochek CEO Etop Ikpe said to TechCrunch. “At the time, when we completed the Nigeria and Ghana acquisition, it wasn’t a conscious effort to make this happen, but it’s great that it happened.” he East African country has a 27.5% penetration compared to the whole West African market at 5%. Therefore, it explains why Autochek is optimistic about the East African market. Before making the acquisition, the one-year-old company ran a stealthy pilot with some banks in Kenya — a similar strategy used in Ghana and Nigeria — to provide car owners with financing. So, the acquisition cements the company’s position in the market, Ikpe says.

The sale of Cheki operations in all of its major markets, which happened within a year, might lead some to ask if the four entities did poorly and forced the classifieds giant to find a suitable buyer quickly. But CEO Ikpe refuted any claims of a distress sale when asked. He stated that the acquisition happened in quick succession because both parties understood that the classifieds model (run by Cheki) needed to make way for the more modern transactional model (employed by Autochek and leading automotive players in Africa). Therefore, ROAM Africa saw it as a needed transition for Cheki.

Africa Automotive News l 2021

News

November-December issue l 2021

Egyptian auto-auction platform Sa3ar acquired by Contactcars

gyptian startup Sa3ar Technology Solutions, a platform that digitises auto-auctions deals, has been acquired by automotive marketplace Contactcars, a subsidiary of Contact Financial Holding. Founded by Adham Hosny and Hussein Hosny, Sa3ar Technology Solutions provides car valuation technology and a dealer-specific auction platform.

The startup has just been acquired by Contactcars, Egypt’s leading automotive marketplace, in a deal that will enable the latter to enhance its user experience by offering a holistic pricing tool catering to both dealers and car traders. The Sa3ar founders and team will continue to work with Contact to develop new and innovative services to bring to market.

“With online usage growing tremendously among both consumers and business, and with the increasing shift to digital by car market players, this acquisition allows us to bolster Contactcars’ market-leading position as well as lay the foundation for additional services going forward. This is just the first step in a series of investments which will be announced in due course,” said Said Zater, chief executive officer (CEO) of Contact Financial Holding.

Egyptian car parts marketplace Odiggo raises $2.2m expansion funding

gyptian startup Odiggo, a digital marketplace for automotive spare parts, has closed a US$2.2 million funding round to help it continue to expand into new markets. Founded in 2018 by Ahmed Omar and Ahmed Nasser, Odiggo links customers with vendors in order to purchase car parts and accessories. It ensures users get the correct, best quality car parts at a convenient time, by allowing them to simply add their car information and location on Odiggo app and see what services and parts are available in their area. Since its launch, the startup has served over 50,000 car owners across three markets – Egypt, the United Arab Emirates (UAE) and Saudi Arabia. The company also works directly with over 300 merchants, with merchant numbers having grown 40 per cent month-on-month while its user base has increased by 200 per cent. “We believe we are at a watershed moment. It is incredible that since COVID hit, Odiggo has experienced over 10 times

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growth in the last year,” Omar said, adding that the startup is now on the road to an initial public offering (IPO) in the next few years. To help it take advantage and continue to expand, Odiggo has now raised a US$2.2 million funding off the back of its participation in the Y Combinator S21 batch. YC is an investor, alongside 500 Startups, Plug and Play Ventures, Seedra Ventures, LoftyInc Capital, and Essa Al-

Saleh. “We are excited to back Odiggo through our Afropreneurs Funds in its quest to transform the automotive parts market and provide superior service to clients, starting from MENA. The leadership team of Omar and Nasser, supported by the rest of the employees, have been a joy to work with and we are on a countdown to the IPO,” said LoftyInc managing partner Idris Ayodeji Bello.

News

November-December issue l 2021

PPG Begins Automotive OEM Sealants Production in Morocco

PG (NYSE: PPG) has announced the startup of a facility in Tangier, Morocco, that will produce automotive sealants for local vehicle production. The plant, which marks the company’s first automotive coatings production facility in Africa, initially will supply materials for Renault Group’s Dacia brand vehicles that are produced in Tangier and Casablanca. “This facility’s startup is an important step in providing local supply for automotive original equipment (OEM) vehicle manufacturers in Morocco,” said Roald Johannsen, PPG vice president, automotive coatings, Europe, Middle East and Africa. “The country is already one of the largest and fastest-growing vehicle producers in Africa. Vehicle output is projected to increase significantly, with two more production facilities expected to be added by 2030.” Policy Center for the New South, a Moroccan think tank, estimates that automotive output rose from 100,000 vehicles in 2000 to around 400,000

vehicles in 2019. Output is expected to increase to 700,000 vehicles by 2023. PPG’s Tangier facility will produce sealants that allow more flexibility in vehicle design and manufacturing. The company is assessing the local production of additional adhesive, sealant and coatings technologies to supply vehicle manufacturers that are expanding production in Morocco. PPG continues to advance the development

of its automotive adhesives and sealants to allow vehicle manufacturers to meet their goals of electrification, light weighting, sustainability, and noise and vibration reduction. “This investment demonstrates our commitment to support our customers and expand in regions that are poised for growth,” Johannsen said. “Each day, we partner with our customers to create mutual value and focus on technical solutions that make a difference.”

INEOS Automotive plans 2022 Europe launch for off-road vehicle will launch in late 2021 at a former Daimler AG (DAIGn.DE) passenger car plant in Hambach, in northeastern France, that INEOS Automotive acquired from the German carmaker last year. Gary Pearson, who heads up INEOS Automotive’s markets in the UK, Middle East and North Africa, said the combustion engine technology the company is using is right for today’s market.

NEOS Automotive, a unit of chemicals and energy giant INEOS (INEOSG.UL), will launch a rugged off-road vehicle in Europe in 2022 and North America in 2023 for farmers and other primarily rural uses, it said on Wednesday, The company plans initially to launch with a utilitarian version of the Grenadier for business customers - which should make up the majority of sales of the four-wheel drive vehicle - and a more comfortable passenger version.

The vehicle will also launch in parts of Africa and the Middle East in 2022. INEOS Automotive is also working on a pickup truck version of the Grenadier, which will be crucial for the North American market. In the U.S. market, pickup trucks make up a sizeable and a highlyprofitable portion of total auto industry sales. The boxy Grenadier will have petrol and diesel engines and drive trains built by BMW (BMWG.DE). Production of the vehicle

But with bans on fossil-fuel vehicles looming in Europe, the company is looking at hydrogen fuel-cell technology for future zero-emission versions of the Grenadier rather than going electric. “As electric technology moves on, it may well become right for us,” Pearson said. “But today in terms of range, the weight of batteries... in a vehicle that needs to pull things, lift things, carry things, that’s not necessarily right for us at the moment.” An agreement between parent company INEOS and Hyundai (005380.KS) to explore opportunities for hydrogen production and supply includes evaluating using the South Korean carmaker’s fuel-cell system in the Grenadier.

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News

November-December issue l 2021

Nigeria committed to development of electric vehicles

he Director-General of National Automotive Design and Development Council, Engr. Jelani Aliyu, has said that the agency would promote the adoption, development, manufacturing and usage of advanced technology in the nation’s automotive sector. Aliyu who spoke at the recent commissioning of the first solar-powered Electric Vehicle charging station in Lagos, a pilot project in collaboration with the University of Lagos said that this has become very important because the world can no longer afford to continue polluting the environment through the use of fossil fuel and its attendant emission of carbon dioxide, carbon monoxide and methane. He said “we are now in the Vehicle Electrification era, cars, trucks and buses all powered by electricity. “A strategic transition from fossil fuel to pure electric power,”explaining that this accounted for the immeasurable support the agency was getting from the Ministry of Industry, Trade and investment in pursuit of the programme.” Aliyu recalled that the agency had earlier, this year recorded some progress in this regard when the Minister of Industry, Trade and Investment unveiled the first made in Nigeria Electric Vehicle the Hyundai

and other incredible solutions. “For the automotive sector, it means vehicles that are highly embedded with ICT solution connectivity between the vehicle and themselves, their users and the road infrastructure. It means vehicles that think for themselves are therefore safer, more efficient and better for humanity.” Kona EV, followed by unveiling of the University of Lagos charge station and later by another at the University of Nigeria, Nsukka, having unveiled one in Sokoto earlier. According to the director-general, “the world is in a race on the back of the eagles and Nigeria cannot afford to be in that race on the back of anything less, neither a falcon nor a hawk, but on the backs of eagles. “Whatever advanced technology is being leveraged by developed countries around the world must also be identified, transferred and optimised by Nigeria for the betterment of its people. “We are now in the fourth industrial revolution, characterised by highly advanced technologies, robotics, artificial intelligence, block chain technology

Speaking at the event which was attended by the University of Lagos vice chancellor, Professor Oluwatoyin Ogundipe, Chief Executive Officer of Stallion Group, Anant Badjatya, NADDC board chairman, Senator Osita Izunaso, said that programmes of these nature are the lifeblood of everything we are trying to achieve in the country. Ogundipe described the commissioning as another initiative of Buhari’s administration designed to promote advanced technology transfer and the development of sophisticated human capital in the country, arguing that the project will offer students first-hand experience with latest innovations in mobility and renewable power technology. He said: “It is strategised to be an effective platform for focused research and development into more applicable vehicle electrification solutions for Nigeria and Africa.”

Scania to supply bus rapid transit solution to Burkina Faso

eal to provide 304 buses will help improve public transportation and sustainable mobility in West African country’s capital city, as part of the Greater Ouagadougou Urban Mobility Project. Scania and its partners are helping to bring sustainable mobility to Ouagadougou, the capital of West African country Burkina Faso, through the delivery of a bus rapid transit solution (BRT). A total of 304 buses will be supplied to the city authorities for the Greater Ouagadougou Urban Mobility Project. The project will help meet the Burkinabé Government’s goal of establishing a modern network of public transport solutions by 2022, in order to reduce the use of single carriage vehicles and the level of air pollution in the city of more than 2.5 million people. What the BRT solution looks like The BRT solution will see Scania supply 80 low-entry 13-metre buses, 58 low-entry 15-metre buses, 10 low-entry articulated buses and 30 coaches, all of which are

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being body built by Marcopolo. Every bus will be able to run on biofuels readily available in Burkina Faso. In addition to this, Scania’s partner Volkswagen Camino Bus will deliver 126 minibuses that will be body built by Marcopolo. The minibuses will be operated on feeder lines. “We are very proud to contribute to the urban mobility development of Greater Ouagadougou, with strong social and environmental effects,” says Nicolas Lougovoy, Scania’s Head of Strategic Projects for the Europe, Middle East and Africa Region. “We believe that the combination of skills between the Scania and our partner, the French-based public transport operator RATP, is undoubtedly one of the keys to the success of this innovative project. We hope that it will be a success story and a case study for the whole of Africa.” Depot, training and biodiesel help also being provided In addition to the buses, Scania and its partners will also supply a bus depot and extensive training to the bus drivers

and technicians working for SOTRACO, Ouagadougou’s public transport company. The agreement also includes Scania fleet management and Intelligent Transport Systems (ITS) equipment, while the project partners will also work on the development and implementation of local alternative fuel solutions to eventually achieve a fleet of buses that is 100% biodiesel. “Sitting in Ghana as the representatives of Scania in the West Africa region, we are proud of our accomplishments in Ghana, Nigeria, Cote d’Ivoire, and now Burkina Faso. Our goal is to make sustainable transport a reality for all countries in the region,” says Johan Kohler, Scania’s Managing Director for West Africa. Other partners The BRT solution has also benefited from the support of Team Sweden, which is a partnership between the Swedish Ministry for Foreign Affairs, the Embassy of Sweden in Burkina Faso, Business Sweden, Swedfund, the Swedish Export Credit Agency (EKN), and the Swedish Export Credit Corporation (SEK).

News

November-December issue l 2021

Sallaum Lines adds BMW and Ford volumes to global shipments

own fleet size to ten vessels. Sallaum Lines has followed a strategic path of vessel acquisition over the last decade and as new vehicle trade increases it will look to build on its fleet size with sustainable vessels conforming with IMO regulations. The company will also continue to work with charters, as it has done in the past. The company has thereby secured the additional tonnage required to secure capacity and frequency of sailings for BMW and Ford when output rebounds in wake of the semiconductor shortage. “Sallaum Lines will also be investing to grow its assets in terminals, land transport and innovative PDI centres,” says Sami Sallaum.

allaum Lines is well established in the movement of vehicles between the US, Europe and Africa, and has now signed new contracts with BMW and Ford for the shipment of vehicles from South Africa to Europe Sallaum Lines has secured contracts with carmakers BMW and Ford for the movement of vehicles between the port of Durban in South Africa to markets in Europe. Shipments will begin in January 2022. According to the company, the vehicles will be transported to the UK through the port of Southampton, to Belgium through the port of Zeebrugge, and to Germany through the port of Bremerhaven. “Sallaum Lines is honoured and excited to expand its partnership with Ford and BMW,” says its vice-president, Sami Sallaum. The company has officially nominated Salloum Logistics as its contract partner for finished vehicle logistics. Salloum Logistics, which is located in Germany, has been providing finished vehicle logistics services for more than a decade.

The company is one of the top ten vehicle carriers globally and draws on decades of experience in moving vehicle volumes between the US east coast and Europe to north and west Africa. It is now looking to capitalise on backhaul trade through new tenders on its routes between South Africa and Europe – trade that promises to make its forwarding operations more efficient and sustainable, as well as optimising its global network. According to Kay Lemke, managing director of Sallaum Lines in Germany, vessels on the US and Europe to Africa lane have previously been loaded in one direction only. With the new contracts for Europe-bound vehicle volumes the company is able to fill vessels in the opposite direction. The company is also ambitiously restructuring its business to offer customers new and competitive services in an industry that is limited to a small number of major players. To provide additional capacity for the growth in vehicle handling, Sallaum Lines is investing to expand its fleet size, beginning with two additional pure car and truck carriers (PCTCs). One is being delivered in January 2022, with a second to follow in June. That will bring Sallaum’s

Sustainable goals Making vehicle handling more sustainable is part of Sallaum Lines’ long-term planning and it has a solid history in delivering emissions cuts. Sallaum Lines is working to the IMO’s Carbon Intensity Indicator (CII), which from 2023 will measure how efficiently a ship transports goods and is given in grams of CO2 emitted per cargo-carrying capacity and nautical mile. Each vessel will be given an annual rating ranging from A to E, and the rating thresholds will become increasingly stringent towards 2030. The company has set a long-term target of net-zero emissions of greenhouse gas (GHG) by 2050. The goals and visions of the initial GHG strategy are to reduce the carbon intensity of international shipping. This means a reduction of CO2 emissions per transport work, as an average across international shipping by at least 40% by 2030, and working to achieve 70% by 2050, compared to 2008. Sallaum Lines’ sustainability report and the entire roadmap for GHG reduction, which includes its non-ocean-going businesses, will be announced later in 2022.

“We are pleased to work with Sallaum Lines side by side to provide trimodal finished vehicle logistics services to the OEMs,” said Walid Salloum, managing director of Salloum Logistics. “We have proved a high level of commitment and a solution-oriented strategy to all our customers through the past years. Beside deep-sea services our companies are offering various services, including terminals and vehicle distribution.” Competitive services

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Feature

November-December issue l 2021

Future of the Automotive World in Kenya

hris Bangles once said that cars are sculptures of everyday lives and in the recent past this has been taking shape. The automotive industry in Kenya has witnessed a drastic progression in local car sales owing to the directive by President Uhuru Kenyatta issued in 2019 urging all government ministries to buy locally assembled cars in an attempt to propel the agenda of ‘Buy Kenya Build Kenya’ initiative. Under the Big 4 Economic Agenda led by President Kenyatta, the government last year set aside funds to purchase vehicles from local assemblers under the economic stimulus package. The automotive sector was among the eight (8) sectors selected for funding with Sh600 million budgeted. Statistics from the Kenya Motor Industry Association (KMI) cites an upswing of 31.5 per cent to 10,044 unit’s sales in the last nine months in which Isuzu East Africa, Toyota Kenya and Simba Corporation jointly sold 7,637 units a year earlier with commercial vehicles taking the biggest percentage of the sales. But as vital as controlling used-car imports is to nurturing a domestic industry, so is establishing a manufacturing base. The government, which identified the auto sector as a key driver of the country’s

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industrialization policy had promised incentives to encourage the local industry by building special economic zones to benefit from tax holidays and low utility rates. Kenya Vehicles Assemblers (KVA), Associated Vehicle Assemblers (AVA) and General Motors EA are some of the already existing car assembly zone offering this services. “It is part of our government’s agenda to promote the philosophy of ‘Buy Kenya Build Kenya’ among our people, and all government entities,” stated President Uhuru Kenyatta.

Despite challenges ranging from imported used cars flooding the market, to the impact of Covid- 19 pandemic to the economy, the industry is still undeniably lucrative and set to sprout up across the continent. Recently, Isuzu East Africa unveiled its 100000th vehicle to be assembled at its Nairobi plant since its inception in 1977. Speaking at the launch, the Isuzu Managing Director, Rita Kavashe said that by the end of last year, the company was still leading as a local motor vehicle assembler with 45.4 percent of the total market.

Auto Industry

November-December issue l 2021 per cent of vehicles. Kavashe announced that Isuzu assembles and sells approximately 5000 units of assorted trucks, buses, pick-ups and SUVs annually, which is supported through an extensive dealer network across East Africa. “In 2020, Isuzu East Africa sold 4,340 units driven by strong demand from Small and Medium Enterprise customers and the government’s Covid-19 economic incentive package,” she said. The development of the automotive world involves many players spread all over the country and one of them being Autopax, who is shifting the narrative in the motor industry with their unique innovation set to revolutionise the industry. They are designing what is going to be one of Kenya’s first, efficient, affordable and sustainable electric vehicles called ‘Nguli’ – a Kamba dialect meaning brave, to be unveiled in November 2021. Electric cars are entirely powered by electricity stored in a battery pack thus you don’t need to buy any gas ever again, they are also 100 percent eco-friendly and this will offer many Kenyans a great way to not only save money but also help contribute towards a healthy and stable environment. This trend is proof that Kenya’s untapped demand combines with a steady increase in consumer spending which has been rising at an annual rate of 10 per cent over the last few years has led to more demand for sustainable vehicle assembly in the country. “The industry has the lowest hanging fruit for economic development that needs to be guided for sustainability through regulations,” says renowned environmentalist Dr Isaac Kalua, Chairperson of the Motorcycle Assemblers

Association of Kenya (MAAK) and Kenya Association of Manufacturers Motorcycle sub-sector. Presently, the automotive sector employs an estimated 12,000 people of which 3,000 are directly employed in assembly plants, 3,690 in downstream spin offs and 5,782 in support sectors excluding dealerships. Kalua emphasizes that in order for Kenya to achieve the dream for locally manufactured vehicles by stirring up the economy, all the players must come on board in order to make the industry tight knit noting that there are more opportunities to be trapped. “The strength of the assembly comes with unity of assemblers. The market can accommodate everyone and is keen to offer jobs which Kenyans are searching for,” says Kalua. Encouragingly, the assembly of motor vehicles in Kenya grew by 31.4 per cent from 2013 to 2014, with figures forecast to almost double between 2013 and 2019. This is improving the country’s chances of becoming a hub for assembly and production in the region. The government has supported the sector by providing a favorable environment through which assemblers import the parts to be assembled in the country and also increasing capacity building by collaborating with TVET institutions. The biggest barrier to new vehicle sales in Africa still remains cheap, secondhand cars from the US, Europe and Japan. The industry experiences tremendous competition from imported vehicles. This is according to the annual report by the National Automotive Policy 2020 where majority of Kenyans import about 85- 90

“Our biggest competitor is China who have an unfair cost competitiveness advantage, which inhibits the growth of local producers,” highlights Mr Ashit Shah, Chairman of the Automotive Parts Manufactures Association (APMA) and Kenya Automotive Manufacturers (KAM). According to the Kenya National Bureau of Statistics (KNBS), the volume of imported vehicles between 2005 and 2017 grew at over 300 per cent from 33,000 to over 120,000 units. Thus, one of the stimulus that led to the birth of Mobius Motors established to provide motorist with an option of low cost cars at about Sh1,100,000 (approximately US$11,000). Mobius Motors, one of Kenyans established manufacturing plant in 2018, released their second model of their stripped- down SUV vehicle with the sole purpose of providing luxury, but robust driving experience targeting the diverse terrain areas. Notably there are several benefits that comes with purchasing locally assembled cars. This includes loyalty programmes and the fact that one gets to own a brand new car with add on value packages that is locally accessible. Many Kenyans however raise concern that the government ought to lower interest rates to enable easier access to car finance. “The availability of financing for new homegrown motor vehicles is virtually available but the interest rates are discouraging, more should be done” remarks Charles Odiero, a resident in Nairobi, Karen. Motor Vehicle assembler’s calls on the government to speedy up the policy implementation process that will govern the growth of the industry and attract more investors in the automotive sector. “The government ought to create regulations tailored towards friendly running of operations and to ensure the prosperity of the automotive sector,” says Anthony Musyoki, Manager Corporate Services & Company Secretary, Isuzu EA Ltd. Though some cars might just be a four wheel structure with an engine but to others it’s a relationship they’ve cultured with their machines. The industry has the potential for economic liberation and just needs immense support from the various economic sectors, the government and the society in order to upscale car production in the country.

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November-December issue l 2021

Report

Toyota and Subaru most preferred car brands in Kenya

apanese cars have remained the most preferred automotive brand for the Kenyan market. Toyota topped the list of personal cars with a 72% preference followed by Subaru at 12% according to a new report by Sagaci Research. The report provides 2021 insights into car ownership and preferences across Africa. Third place was taken by the German brand Mercedes-Benz, with another Japanese automaker Honda taking the fourth position. BMW was placed fifth. “Across Africa, in the South, East and West, Toyota was one of the most popular choices in terms of respondents who were aware of and had ever purchased the brand,” noted the report by the firm which provides market research and data analytics for African

Benz, Nissan, Hyundai and Audi. “In addition to Toyota and Mercedes which were popular across the continent, Peugeot ranked highly within Western African nations, whereas Subaru and Nissan were popular in the East,” noted the report.

markets. “Toyota poses a real competition to its German rivals in certain parts of the continent, as well as highlighting interesting differences between demographic groups.” In South Africa, Volkswagen ranked first, followed by Toyota, Ford, BMW, Mercedes-

However, according to data from the Kenya Motor Industry Association, Toyota was the second-highest vehicle seller in the country after Isuzu, selling 1,352 new units in the first six months of the year. Subaru sold 19 new units from local authorised dealers. Government data notes that second-hand car models make up more than 85 per cent of the imported fully built units in Kenya, with the bulk coming from Japan. Sagaci Research managing director Julien Garcier said the report would help explain some cultural norms and inequalities existing within certain countries for women and the lower classes. “While in Europe, ownership of cars is slightly declining in favour of shared ownership or rental, car ownership still has a long way to go across the African continent and remains a distant dream for many. Some brands have figured this out and seem to be surfing the wave… but this changes rapidly,” he said.

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Report

November-December issue l 2021

Morocco Becomes Africa’s Auto

Manufacturing Hub

orocco’s Automotive industry is relatively growing each year with car sales exceeding 160,000 units in 2021, and creating over 220,000 direct jobs. Morocco is Africa’s first passenger car manufacturer. With $7 billion (MAD 65.1 billion) exports made in the car industry at the end of 2018, Morocco has surpassed South Africa as the biggest exporter of passenger cars on the continent. As of 2021, new passenger vehicles (PCs) recorded an increase of +10.77% with 115,611 units sold, transforming Morocco as a leading automotive manufacturing hub in Africa. Despite the consequences of the COVID-19 crisis, the industry has gradually recovered this year, selling around 400,000 cars to Europe, with France, Spain, Germany, and Italy among its top exporters. The Financial Times reported that Marc Nassif, managing director of Renault in Morocco, the biggest manufacturer in the country, said that local suppliers provide the French auto company with automotive components for its vehicles, such as seats and axles. He estimated that local components constitute 60% of the final product and predicts the number to rise to 65% in the near future. As for the country’s infrastructure, the Moroccan government allocated $7.76

billion (MAD 69 billion) in 2015 towards developing infrastructure in Morocco’s southern landscape, including roads, universities, airports, hospitals, and more. The recent Tangier-Casablanca high speed rail project, a $4 billion (MAD 36 billion) investment that has rendered Morocco’s infrastructure more modern and efficient in recent years, is also a major development for the country’s infrastructure industry. With the government incentives and foreign investments’ rapid implementation in Morocco, financial experts anticipate the automotive sector to grow by $14 billion (MAD 126 billion) within the next five years. Morocco’s automotive sector in Expo 2020 Dubai The General Confederation of Moroccan Entreprises (CGEM) and the Moroccan Agency for the Development of Investments and Exports (AMDIE) organized “Morocco Week” in Dubai as part of the Expo 2020 Dubai, spanning from October 10 to 16. There was a large attendance of Moroccan public and private operators aiming to promote Morocco for foreign investors through highlighting the kingdom’s potential as a global investment hub. CGEM’s President, Chakib Alj, said Morocco’s political stability and geographical location played a key role in attracting foreign investment, making the North

By choosing Morocco, an investor chooses growth, innovation, visibility, stability

African country the second most attractive investment destination, behind Egypt and ahead of South Africa, Kenya, and Rwanda. With more than 60 free trade agreements signed with Europe, the US, Turkey, the United Arab Emirates and elsewhere, Alj recalled Morocco’s competitiveness and massive efforts in infrastructure and automotive to become an essential gateway to Africa. “All these achievements have made Morocco a prosperous and safe environment for business,” he said. During the event, Morocco introduced foreign investors to the main features of the New Development Model (NDM). The North African country will soon implement the framework of the NDM to expand its economic growth and investment opportunities in various sectors, especially in renewable energies. “By choosing Morocco, an investor chooses growth, innovation, visibility, stability,” Alj said. “[The investor] also chooses to access a growing continent with a promising future,” he added. During “Morocco Week,” organizers held a seminar to highlight Morocco’s industrial sector. Both Moroccan and foreign participants stated that Morocco’ industrial sector “has achieved a remarkable success that exceeded all expectations,” making Morocco a prominent destination for its national industrial fabric. The event will also host B2B meetings and conferences centered around industry, logistics, finance, renewable energies, and innovation.

Africa Automotive News l 2021

Markets

November-December issue l 2021

Coega Development Corporation extends automotive expertise to Senegal

he Coega Development Corporation (CDC) announced it is extending its advisory services and expertise in the automotive industry to Senegal. CDC Head of Marketing, Brand and Communications, Dr Ayanda Vilakazi: “Final negotiations between Senegalese Investment Agency (PAIMRAI) and the CDC have recently concluded with the CDC and Automotive Investment Holdings (AIH) being appointed to elaborate a strategy for the development of the automotive industry in Senegal.”

States, 173 in China and 214 in South Africa, for a world average of 180 cars per 1,000 inhabitants. This rate hardly exceeds 3% in Senegal, which means that only 30 people out of 1,000 own a private vehicle,” Vilakazi said. Apart from Nigeria and Ghana, the automotive industry remains nascent in the member countries of the Economic Community of West African States, whose process of industrialisation faces the threat of used car imports from Europe, Japan, United States, Canada and other countries.

Vilakazi said the sub-Sahara Africa automotive sector currently accounts for less than 3% of global production, against 30% in China, 22% for Europe and 17% for North America.

“The sub-regional and regional integration, through the development of upstream and downstream links in the automotive industry value chain, will stimulate industrialisation and competitiveness throughout Africa,” the CDC said.

“The motorisation rate in this region was very low in 2018, with 42 cars per 1,000 inhabitants, against 837 in the United

According to research conducted by Dakar’s Foreign Trade Office, about 100,000 vehicles are imported to the country every

year, which require constant replacement of parts due to difficult climate and infrastructural conditions. Senegal imports almost all spare parts. However, a strong focus for the government is to encourage the automotive industry in the country. It is an important driving force for Senegal. Stringent environmental regulations on pollution and carbon emissions are necessitating heavy investments. “The Senegalese Automotive Industry Strategy developed by the CDC and AIH will provide a comprehensive analysis of the automotive industry in Senegal, its potential and the upstream and downstream linkages that can be developed with countries such as South Africa and Morocco, which are the leading vehicles manufacturers in the continent,” the CDC said. Collaboration in Africa’s automotive industry is key The appointment of the CDC sees the organisation expanding its project footprint throughout the continent, with projects currently in Zimbabwe, Cameroon for the Central African Republic and now Senegal. Drawing from 21 years of expertise in project managing mega and complex infrastructure projects in South Africa for the public and private sector, the Coega Special Economic Zone (SEZ) has successfully developed its Automotive Zone and attracted investment exceeding $895 million. CDC Global Market Manager Nkuli MxengeMayende said he encouraged collaboration with the rest of the continent. He believes collaboration will promote working together, championing and driving forward implementation of free trade across the borders. He also believes that at a time like this we should take advantage of the supply chain networks and technological innovation within the industry. “We believe that the African Continental Free Trade Area (AfCFTA) will provide investors with easy access to new, rapidly developing markets while it has the potential to lift 30 million people out of extreme poverty but achieving its full potential will depend on significant policy reforms and trade facilitation measures,” said Mxenge-Mayende. The Smarter Mobility Africa summit held in October championed the idea of collaboration and working together under the principles of Ubuntu – I am because you are. The opening panel discussion looked at how the Africa Free Trade agreement can foster electric vehicle standardisation across the continent.

Africa Automotive News l 2021

Markets

November-December issue l 2021

Nigerian mobility startup Moove expands to Cape Town

igerian mobility startup Moove, which provides revenue-based vehicle financing to help individuals across Africa own their own vehicles, has expanded to Cape Town and is gearing up for further panAfrican growth. Founded by British-born Nigerians Ladi Delano and Jide Odunsi, who have successfully built three other businesses in Africa over the last eight years through venture studio Grace Lake Partners, Moove is democratising vehicle ownership in Africa by providing revenue-based vehicle financing to mobility entrepreneurs. Moove embeds its alternative creditscoring technology onto ride-hailing and e-logistics platforms, which allows access to proprietary performance and revenue analytics of mobility entrepreneurs to underwrite loans. Its model is to provide loans to its customers by selling them new vehicles and financing up to 95 per cent of the purchase within five days of sign up. The startup last month raised a US$63.2

million Series A debt and equity funding round to help it expand more quickly, and it has now announced its launch in Cape Town. The expansion marks the fourth city in which Moove has launched within only 15 months of operations, building on existing operations in Johannesburg, Lagos and Accra. The startup plans to establish a presence in more locations over the coming months. The news also coincides with five new hires for Moove’s global C-suite and the

milestone of completing one million Uber trips in Moove-financed cars. “We’ve only been operating in South Africa for four months, but it’s an excellent market with huge demand for our product,” said Sinako Cetyiwe, South Africa country manager for Moove. “The next phase for Cape Town and the rest of the country is to grow our sign-ups, revenue, and trips so that we can empower more South Africans to become mobility entrepreneurs and earn a living in safe, new vehicles.”

Africa Automotive News l 2021

Opinion

November-December issue l 2021

Unlocking Africa’s automotive aftermarket

Author: Yves Nono, Regional President Automotive Aftermarket at Bosch Africa Contributor

frica has one of the world’s fastest-growing populations. Early 2021 the United Nations estimates that the continent has 1.38 billion inhabitants, which will grow to 2.5 billion by 2050. It’s also the world’s youngest continent, with almost 60% of the population under the age of 25. More people are entering the labour force, which drives the growth of an emerging middle class. Young populations, together with rising incomes and increased purchasing power, provide huge opportunities for the continent’s auto industry. Consumers with more cash in their pockets will look for safe, convenient, reliable and environmentally friendly forms of transport, and will be more prepared to pay for after-purchase services. In addition to the severe impact of the Covid-19 pandemic, economic growth across Africa has faced many challenges over the years, from lack of investment to insufficient manufacturing capabilities, skills shortages, infrastructure demands and unstable energy supply. The African Union noted that only 16% of goods manufactured in Africa are traded on the continent. With the introduction of the African Continental Free Trade Agreement (AfCFTA), the face of Africa is transforming, providing opportunities for free movement of goods and people. AfCFTA holds the capacity to reshape markets and economies and accelerate growth across more than 50 African countries. It can also play a major role in unlocking the continent’s automotive aftermarket potential. The automotive aftermarket industry is the market for replacement motor vehicle parts, accessories, components and tools, after a vehicle has been sold to a consumer. It includes the repair services and maintenance that dealerships sell to consumers.

Africa Automotive News l 2021

Today, there are approximately 60 million vehicles in operation on the continent, with an automotive aftermarket size estimated in excess of 30 billion Euro. Taking this into account, Africa has similar needs compared to matured markets like Europe. Such as: • •

• • • •

affordable and reliable parts to support sustainable daily vehicle repairs and maintenance technical competencies and professional skills to understand the increasing complexity in the vehicle architecture certified maintenance workshops to service all makes and models of vehicles with minimum standards accessible vehicle diagnostic tools to diagnose vehicle status, and recommended repair guidelines well-developed distribution networks to ensure part availability, not only in urban areas accurate vehicle data to help assess real demand and improve forecasting

All of these needs have to be supported by relevant in-country regulatory and policy frameworks, to foster and unleash the potential of the local automotive aftermarket.

Overcoming obstacles and challenges The automotive aftermarket industry is an important contributor for countries in Africa, helping to build economies, to improve road safety and to enrich the quality of life for all Africans. While it is undergoing an essential transformation, this industry sector also faces many challenges. These include but are not limited to: •

• • • •

counterfeit or second-hand spare parts from scrap yards used as a cheaper alternative to buying genuine reliable parts low offer of localised spare parts manufacturing skill scarcity of mechanics, as well as mobility user awareness (e.g. total cost of ownership) fragmented and undeveloped distribution network making affordable logistics challenging lack of transparency in regard to

• •

imported used and new vehicles (e.g. origin data missing) small volume of qualified repair or maintenance workshops volatile trade barriers affecting imports

Despite all these challenges several opportunities exist, as the demand for quality, affordable automotive spare parts and maintenance services steadily increases through rapid urbanisation and the emerging middle class. This growing demand will in certain cases justify the need for the local manufacturing of vehicle components, in order to remain competitive. In addition, the ongoing mega trends, such as e-commerce, connectivity, electrification and digitalization, could become a game-changer for the development of the automotive aftermarket in Africa.

Leading the way in Africa Bosch was founded in Stuttgart in 1886 as a workshop for precision mechanics and electrical engineering, and it opened its first car service in Hamburg in 1921. In the past century, the Bosch Automotive Aftermarket organisation has established itself as the world’s largest brandindependent workshop network and has cemented its position as a reliable and innovative mobility partner. The Bosch Automotive Aftermarket division has been present in Africa since 1951 and is today located in 6 countries, with local teams on the ground serving more than 40 African countries. The division’s business activities and solutions portfolio includes spare parts trading, maintenance workshop development, diagnostic support and technical training centre deployment. As a key player in the automotive aftermarket sector, Bosch has done significant work in Africa in the past ten years to address the difficulties faced by the industry. While there are major challenges facing the automotive aftermarket, there is also considerable potential. By addressing the demands and obstacles of this industry, the automotive aftermarket can drive much-needed growth on the continent.

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Commercial

November-December issue l 2021

Tata Motors: How India’s largest commercial vehicle maker is conquering Africa

ata Motors is India’s largest commercial vehicle manufacturer. Founded in 1945, the brand stepped foot in the commercial vehicle business in 1954 and has dominated the market since. However, the Indian automaker has also made its presence felt in international territories as well. One of the significant moves by Tata Motors was when it entered the African market. Since then, its presence in the continent has expanded exponentially.

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The Tata Motors journey in Africa started back in 1964, with exports to Sudan. In the following decade, the company set up its first operations in Zambia. Since then, it has sold over 1,50,000 vehicles across the continent, establishing a strong, farreaching network, with a direct presence in Kenya, Uganda, Tanzania and Malawi in East Africa; South Africa and Mozambique in Southern Africa; Nigeria, Ghana, Cote De I’voire and Senegal in West Africa; and Tunisia, Ethiopia, Sudan and Djibouti in North Africa. Tata Motors commercial vehicles (CV) are globally recognised for their reliability and

Africa Automotive News l 2021

Tata Motors has been India’s largest commercial vehicle manufacturer since its inception. The Indian automaker also has a great presence internationally and has been on the path to conquering the African market since 1964.

The local tie-ups through distributors and dealers give the company, the ability to provide its customers with a superior overall localised service experience.

An Expansion Strategy tailored for the African Subcontinent Market expansion has consistently been one of the key pillars of strategy for the company within the continent. Its current network consists of a diverse range of setups, comprising 60 3S (sales, service and spare parts) setups, and 70+ 2S (service and spare parts) setups. Keeping in mind the limitations brought forth by the COVID-19 pandemic, the company has undertaken a cautious approach for calibrated expansion, keeping in mind the viability of the business and best customer experience.

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efficient performance. They bring to the market a winning combination of powerpacked performance and lower lifecycle cost of ownership. This is in addition to the reliability and ruggedness that are necessary for operating in local weather conditions and terrains. The wide range of offerings allows Tata Motors to provide its customers with the best-fit vehicle.

Tata Motors’ commercial vehicle business plan has remained cognizant of varied customer needs within Africa – it has focused more on the demand for trucks and buses within Sub-Saharan Africa, and SCVs and pick-up trucks in North Africa,

Tata Motors

November-December issue l 2021

retaining a broader focus on greater than 6-tonne category of CVs to consolidate growth. In many of the Sub-Saharan markets, particularly Tanzania, Uganda, and Senegal, Tata Motors has climbed up to be amongst the top 3 CV brands within the greater than 6-tonne segment. The company’s diverse product portfolio catalogues best-in-class vehicles that have been adapted to suit African duty cycles and operations, providing superior efficiency with minimum operating costs. In addition to the wide product portfolio, Tata Motors also ensures a best-in-class after-sales experience for its customers. Towards providing complete peace of mind to the customers, we offer Tata Motors Protect programme including comprehensive warranty coverage and a slew of other aftermarket services, through our extensive service network across the African continent. The easy availability and low cost of spare parts further reduce the total cost of vehicle ownership and adds to the customer delight. With its strong dealer network, Tata Genuine Parts, wide product portfolio and financing solutions, Tata Motors is casting a profitable and sustainable roadmap for Africa’s commercial vehicle transport economy, with benefits shaping up in better forms for the customer, industry at large and community.

manufacturing footprint within Africa to tackle this challenge. In alignment with its push to ‘make local’ while going global, Tata Motors has now established a total of 6 assembly operations in the continent, with a joint-venture with Tata Africa in South Africa, and third-party operations in Kenya, Nigeria, Senegal, Tunisia, and Ethiopia. Further, Sub-Saharan Africa can also be expected to play a pivotal role in conducting export operations as the company renews its focus on expanding its exports business. Tata Motors assembly operations in Africa, are fully capable of assembling vehicles, imported in the form of CKD and SKD kits from its home country, India. This helps in bringing the overall cost of manufacturing down, thereby offering the best price to the customers and promoting local employment. It also exports Completely Built Units (CBU), catering to different applications in Africa such as – public bus transport, municipal vehicles, cement and construction tippers, to name a few.

Paving the way for the future Despite the COVID-19 pandemic, Africa came out least impacted in FY21 and focused efforts on demand-creation helped its business in South and East Africa grow marginally in FY21 over FY20. As markets open up further, Tata Motors plans to build upon the encouraging landscape in Africa with the strategic introduction of new products for entry into new segments and additional customer-centric value-added services in the coming months. It continues to play an active role in the commercial vehicles industry in Africa, working closely with customers to develop and offer value-creating commercial products and solutions. With a steady commitment to serve varied needs, the company will seek to further expand its presence, consistently bringing new, future-ready products to the table, stimulate growth, expand employment opportunities, increase possibilities within manufacturing and fulfilling its central motto of connecting aspirations of its customers.

Overcoming challenges with a focused approach Except for South Africa and some other organised markets in North Africa, financing remains a key challenge within the Sub-Saharan market. In order to grow business, effectively facilitating the availability of finances is imperative. Consequently, Tata Motors is taking the assistance of its channel partners to provide captive financing options which in turn will help its customers to expand their business quickly. The import of second-hand vehicles is a prevailing practice within Africa, with nearly 48 countries out of its total of 54, permitting such import. Besides following its strategic expansion plan, the company has also established a strong

Africa Automotive News l 2021

November-December issue l 2021

Africa Automotive News l 2021

Opinion

November-December issue l 2021

Power shift and what it means for South Africa’s automotive industry

uch has been made of the so-called Fourth Industrial Revolution – the integration of physical and cyber systems that is making traditional manufacturing more automated and technology-driven. But this “revolution” is arguably not very industrial, perhaps even a force for deindustrialisation; it is predominantly about the accelerating impact of technology on manufacturing – not one that creates, but rather destroys, incumbent jobs. What we call the Fourth should more accurately be named the Third Industrial Revolution and this refers to the nature of power generation. The first revolution was steam power and mechanisation; the Second was electricity-powered mass production; and now the Third will be driven by battery technology. This power shift will have profound implications for all industries, in particular the automotive industry, arguably South Africa’s only industrial success case in recent decades. This revolution is bring shaped by the imperative to counter climate change. All of the world’s largest economies have committed to becoming carbon neutral by 2050, or in China’s case by 2060. Targets set for each industry, in particular transportation, will require major shifts in production and entire value chains having to convert from internal combustion engines (ICE) to hybrid or battery electric vehicles (EVs). Europe is leading the way in terms of regulation. According to research firm IHS Markit, EV sales will account for approx. 40% of the market by 2030, by more than 50% by 2035 and up to 100% by 2050. By sheer volume, China leads the way in EV sales with a forecasted 1,9m vehicles to be sold this year. According to Canalys, China accounted for over 40% of global EV sales last year. In comparison, sales in South Africa are incredibly low with just 637 EVs sold and hybrid sales numbering only 653 by the end of 2020. What accounts for such a low uptake? EV sales are driven by a number of factors – government regulation; the pricing of carbon in the form of tax on ICE vehicles; government-provided consumer incentives schemes; the availability of charging infrastructure; and even a strong environmental consciousness in society. All of these aspects are to varying extents

lacking in the South African context. Perhaps the key factor in South Africa is pricing. Without any incentives, the cheapest pure EV is the Mini Electric which starts at R658 000. Citing Wesbank’s figures, the average purchase price – across all models – of a new car in South Africa is R358 390 (January 2021). Affordability is thus the overarching key challenge to EV adoption in the local market. As long as EVs are priced toward the higher end of the market, the shift from ICEs to EVs will only take place in developed economies and emerging countries with increasing consumer purchasing power. For South Africa’s crimped middle class, EVs are largely unaffordable. This speaks to a divergence in the global auto market between the developed world which is rapidly adopting EVs and the developing world remaining with obsolete technology. The only current exception are a number of Chinese EV companies that are selling vehicles at low prices catering for the mass market. The fundamental challenge facing the South Africa automotive manufacturing sector will be the transition to the making of EVs without the support of a strong domestic sales market. Roughly twothirds of domestic vehicle production is exported amounting to R201.7-billion in value in 2019 (Naamsa). Our main export destinations are the UK and European Union countries which will rapidly shift to become EV markets. The UK will ban the sale of new petrol and diesel cars by 2030 and end sale of hybrids by 2035. Germany and France have their ban set at 2040. According to the VDA, an organisation representing the German auto industry, the number of EVs registered in Europe increased by 143% last year when compared to 2019 (Financial Times). The Covid-19 pandemic is acting as a tipping point and accelerant for this technological shift. VW is spending €35-billion to bring 70 battery-electric powered vehicles to the market by 2030 and has forecast that EV sales will account for 70% of its own sales in Europe by this time. This figure may however, be an overestimation, driven not just by consumer trends but also possible shortages of batteries. The production of batteries is lagging these dramatic changes in the market with significant supply chain risk arising. Whilst similar

Dr Martyn Davies, Managing Director, Automotive Industry Leader for Deloitte Africa

challenges face other markets, South Africa will lose its main markets and in the future have less market options to export to without a technological shift in local power train manufacturing. As China controls a number of strategic metals in the supply chain, this power shift is now of strategic interest to competing industrial powers. This was a driver of China’s sizeable investments into African mining assets and infrastructure in recent years, especially for countries like the DRC and Zambia. Beyond securing key minerals deposits, China’s own “Made in China 2025” strategy was launched in 2015, a state-led and subsidised industrial strategy in an attempt to capture high-tech manufacturing. Competing Western countries are responding with stockpiling of critical minerals and proactive industrial policies. Geopolitics will increasingly impact the high technology battery industry, a sector that will be of critical importance for many industries not to mention countries. We can expect more interventionist governments all of whom will seek to gain an advantage in critical technology and manufacturing scale. To maintain and further grow our automotive manufacturing ambitions, South Africa will have to adapt to the fast technological shift that is occurring, much of which is being driven by the imperative of combating climate change. Possessing strategic metals is one thing, being able to mobilise the capital and harness the intellectual capital required to compete in the battery industry will increasingly determine countries’ competitive advantage in high-value manufacturing.

Africa Automotive News l 2021

Cover Story

November-December issue l 2021

The Role of Automotive Tires and Wheels

hat is the first automotive product that was not invented by man but created by Nature? Automotive Tires and Wheels, of course! The parts of a car are as diverse as the components that build it and one of the parts that have undergone the most changes in design since the advent of the internal combustion engine is the tire. The invention of the air-cooled piston stroke and the discovery of the rubber tree (which gave rise to a whole new line of parts for cars) changed the face of automobile technology forever. Before we discuss the role of Automotive Tires and Wheels, we need to know a little bit about the wheel itself. A wheel can be divided into two parts, the inner tube rim and the outer tube hub. The inner tube rim is a flat, concave material that is made out of steel or aluminum and it has channels running down its length that carry a lubricant. On the other hand, the outer tube hub is much wider and it consists mainly of a rubber compound that is heavily pressed into the 22

Africa Automotive News l 2021

Tires & Wheels

November-December issue l 2021

composition is quite similar to that of tires found in trucks of the past such as those made from cast iron. Today, they are primarily used for passenger vehicles like SUVs and Minivans. The main difference is that Aluminum has much more strength than cast iron. This makes them superior to tires of the past because they cannot be bent or flattened by the load, which means that they can withstand much more stress without cracking.

aluminum. As one can surmise, both the inner tube rim and the outer tube hub play an important part in the operation of a vehicle. When looking at the role of Automotive Tires and Wheels, we must understand that they are designed to service and to protect the wheels and the rims of a vehicle. When you take a look at a typical Automotive Tires or Wheels you will notice that they are manufactured using many different materials. As stated above, the most common material to see used in Automotive Tires is the rubber compounds that are found on the inner tube rim and the outer tube hub. However, there are a few other materials that can be found in Automotive Tires as well. For example, Aluminum tires are commonly found on trucks. Their

Rubber tires also make up the majority of Automotive Tires because they perform the same basic function as the rubber tires of cars. The main difference is that they are constructed to be much more durable and resilient and to perform under much more punishment than their counterparts. For example, a lock rim is much stronger than the standard tire on a pickup truck because it is typically built to accommodate much greater pressure. A lock rim can resist hydrostatic pressure of thirty thousand pounds or more and it can resist tearing and stretching to a much greater extent than standard automotive rim rims. Another very important part of Automotive Tires is the tread. When shopping for new tires, it’s necessary to take a close look at the tread that each specific type offers. Some types of Automotive Tires feature very small grooves while others feature deep grooves. This difference in the construction affects how well the vehicle handles and performs when it is on the road. There are many different types of Automotive Tires available for sale. Once a person takes a closer look at them and determines the needs for their vehicle, they will be much more likely to find the perfect set of automotive tires for their car or truck.

Africa Automotive News l 2021

November-December issue l 2021

Africa Automotive News l 2021

November-December issue l 2021

Aftermarket

Aftermarket guidelines beneficial to automotive industry

Ozoux says the company has been working closely with authorities and other tyre manufacturers to ensure the retrieval of as many of these tyres as possible. To this end, a Looted Tyres Hotline has been set up as a way of supporting rebuilding and recovery.

ompetition Commission South Africa’s Automotive Aftermarket Guidelines, which came into effect in July, after being published in January, can be “hugely beneficial to motorists”, says tyre manufacturer and distributor Sumitomo Rubber South Africa CEO Lubin Ozoux. “However, consumers still have a responsibility to use quality automotive aftermarket brands that are recommended by a reputable, accredited workshop that knows its vehicle and uses the right products and parts.” Ozoux believes that all industry players also have a responsibility to provide sound and responsible advice for consumers, thereby enabling them to make informed and safe choices. As an international company with a local manufacturing operation, Sumitomo Rubber South Africa will continue to focus on ensuring that its franchises can provide this kind of advice, supported by expert training and service excellence. Ozoux emphasises that consumer safety needs to remain the primary concern of tyre retailers and manufacturers, with their having “a great responsibility” to educate consumers on the best replacement options without compromising on the technical attributes of the vehicle. “Tyres and brake pads are safety-related wear items and there should never be any cutting of corners when it comes to safetycritical vehicle components.” Further, the company is focused on providing value at a fair price. This includes ensuring quality, safety and a package of services for tyre purchases for direct customers and end-consumers. To reinforce customer confidence, Sumitomo Rubber South Africa launched Dunlop Sure at the end of last year. Dunlop Sure is a value-added extra package of services intended to provide further benefits for dealers when selling the company’s products, while providing extra peace of mind for consumers.

After being robbed of its stock, Sumitomo Rubber South Africa has been working tirelessly to minimise the impact on dealers and safeguard their businesses. Significant efforts have been made to remove looted tyres from the market, which has involved fostering public awareness against buying them.

“We will continue to focus on research, development and proactive testing as priorities to provide world-class tyre manufacturing in South Africa,” Ozoux says. The company tests its tyres rigorously in all applications, with high regard for feedback from customers, he notes.

Working to Rebuild While members of the National Association of Automotive Component and Allied Manufacturers, such as Sumitomo Rubber South Africa, welcome the forward momentum of the Automotive Aftermarket Guidelines and all the other efforts to rebuild the industry after the onslaught of Covid-19, the riots that broke out in several locations across the country in July served as an unfortunate additional setback. For example, the company’s Westville warehouse in Durban, KwaZulu-Natal, was invaded unlawfully and vandalised during the unrest, leading to an estimated R97.7million loss in stock and assets. More than 96 000 items were stolen or damaged, including tyres and tyre accessories. Assets and stock that were affected in this manner by the riots and looting included truck and bus, passenger/ sport utility vehicle (SUV) tyre stock, motorcycle tyre stock, as well as some tyre-testing equipment. Ozoux tells Engineering News that the tyres, which began circulating in the market illegally after the unrest, have been predominantly passenger/SUV and motorcycle tyres.

“Leads generated from the hotline have been passed on to the South African Police Service who have been diligently following them up. Moreover, we have urged customers to approach purchases from unknown retailers and individuals with caution and to purchase tyres only from reputable manufacturers and suppliers.” The company has also urged tyre fitment centres not to fit loose tyres without a valid proof of purchase. Further, Sumitomo Rubber South Africa has been striving to prevent potential road safety issues wrought by the thousands of looted tyres being fitted informally and incorrectly by untrained people who might not know how to match and fit the most suitable tyres according to a vehicle’s technical attributes. Ozoux says that the lack of proof of legitimate purchase and fitment puts the customer in a compromised situation, should performance or insurance issues arise from the use of these tyres. To prevent any further damage to the company’s stock and assets in future, the company has intensified the security presence at its other sites in Ladysmith, KwaZulu-Natal; Jet Park, in Gauteng; Cape Town, in the Western Cape; Bloemfontein, in the Free State; and Gqeberha and East London, in the Eastern Cape. “We will reconsider our distribution strategy. At certain sites, we are also looking to work closer with other businesses in the area to discuss measures we can take as a collective,” Ozoux explains. He says the company is also putting measures in place to ensure that, should any future threat suddenly arise, its security presence can be swiftly increased.

Africa Automotive News l 2021

Africa auto market

November-December issue l 2021

How African automotive market can rise from 1.1m to 5m vehicles annually

The automotive sector can also be the critical catalyst for the successful implementation of the AfCFTA, which in itself will be vital to ensuring that the people of this continent can finally break free from the shackles of their past

resident of the Association of African Automotive Manufacturers, AAAM, Mr. Mike Whitefield, has predicted that African automotive market could rise from the current 1.1 million vehicles per annum to five million vehicles a year if Nigeria and other concerned African countries key into the recommended Automobile Industry Development plans recommended by the AAAM. Whitefield, in a statement, noted that presently, Africa has only three major automotive manufacturing hubs which is South Africa and Morocco while Egypt is trailing in the third position. Drawing comparison between Nigeria and South Africa automotive industry, the AAAM boss said that South Africa produced 631,921 vehicles in 2019 and sold 536,612 new vehicles in the country during the same period in contrast to 10,000 new vehicles sold in Nigeria during the same period.

Africa Automotive News l 2021

He said: “Between South Africa 631,921, Morocco 394,652 and Egypt 94,000, Africa produced 1.1 million vehicles in 2019.” According to him, if Nigeria and other concerned Africa countries key into the recommended Automobile Industry Development Plan, the AAAM believes that African automobile market could rise to five million a year. To this end, he said “the key to that is creating automotive hub in Africa, which at the moment would be centered in Kenya, Egypt, Ethiopia, Nigeria and Tanzania.”

7.1 per cent to the GDP in 2019 and earned $14.3 billion through exports. He disclosed that: “The World Bank estimates that the effective implementation of the African Continental Free Trade Agreement, AfCFTA, could potentially increase Africa have combined GDP by US$450-billion by 2035 and lift 100-million people out of poverty by increasing inter-African trade by 80 per cent.

Drawing comparison between the two Africa’s largest economies the AAAM boss said: “In comparison with Nigeria, South Africa is a very inspiring example of what a sustainable automotive sector can do in partnership with government and organised labour.

“The automotive sector can also be the critical catalyst for the successful implementation of the AfCFTA, which in itself will be vital to ensuring that the people of this continent can finally break free from the shackles of their past, the poverty and the hopelessness, despite living on a landmass with the vast natural resources that we have.

Sixty years in the making, he said “today, the South African automotive sector directly employs 470,000 people and three times more in value chain. It contributed

“This is one of the reasons the AAAM is working so hard to create a coalition of the willing among African governments to create a sustainable indigenous

November-December issue l 2021

Africa auto market

automotive industry – and working just as closely with the AfCFTA secretariat, positioning the automotive industry as a vanguard for the AfCFTA,” he stated. Continuing, he said “Africa will happen; it’s not a question of if but when. By working together, we can accelerate that, creating an ecosystem that truly lifts people out of poverty, creates hope through trade links and good quality jobs. “But equally, if we miss this opportunity now, we might not be able to achieve this in the future.”

Mike Whitefield, President of the Association of African Automotive Manufacturers, AAAM,

“

Africa has only three major automotive manufacturing hubs which are in South Africa and Morocco with Egypt trailing in the third position. AAAM believes that African automobile market could rise to five million cars a year. The key to that is creating automotive hub in Africa, which at the moment would be centered in Kenya, Egypt, Ethiopia, Nigeria and Tanzania

”

Africa Automotive News l 2021

Africa auto market

November-December issue l 2021

Bridgestone promotes efforts in advancing women’s role in the automotive industry

ridgestone, global sustainable mobility, and advanced solutions provider, joined this year’s edition of Automechanika Dubai, the largest international show for the automotive aftermarket and service industry for the Middle East and Africa region. The 18th edition of Automechanika Dubai, held recently at the Dubai World Trade Centre, convened international visitors, exhibitors, suppliers, customers, and business partners from the automotive industry to discuss the latest market trends and innovations, and potential partnerships. As an industry pioneer, Bridgestone actively participated in the event to bring forward its milestones, particularly women’s roles in the automotive industry. Berna Akıncı, Head of Marketing at Bridgestone Middle East and Africa, was one of the panelists in their Women in Automotive session. The session titled ‘An Interview with Women in Automotive, Enabling Women as Industry leaders and Serving Female Consumers’ discussed various roles of women in the industry, whether through inventions, technical innovations, leadership, courage, or inspiring successes behind the wheel. The discussion shed light on significant industry concerns and topics, including

Africa Automotive News l 2021

underrepresentation of women at the executive level, cultural and traditional bias due to underrepresentation, and the importance of mentorship and guidance. The session also brought forward the need to encourage women early, making the automotive industry appealing to women and the importance of flexibility in working hours. It is imperative to create systematic support to advance women’s representation and inclusion across automotive operations. It was also pointed out that the way forward is to increase awareness and develop programs that provide support to women in childcare, career support, and other opportunities that can facilitate career growth. Representing the women leaders of Bridgestone, Berna Akıncı said: “We are proud of how Bridgestone continuedly encourage and advance diversity and inclusivity in the workplace. Our company has been proactive in creating a conducive work environment for all individuals who have diverse values and backgrounds, irrespective of their

Berna Akıncı, Head of Marketing at Bridgestone Middle East and Africa

gender. We want our employees to work comfortably and demonstrate their abilities while supporting career growth and development. It is essential to design and implement programs that empower our employees, such as career development training, help employees develop networks, and offer career-support training for managers with a special focus on gender diversity awareness. Embracing employee empowerment contributes to the enhancement of work culture and values at our company.”

Africa auto market

November-December issue l 2021

India Eyes Investing in Local Automotive Industry

ndia said it is looking at the possibility of partnering with Tanzania on investing in the construction of the automotive industry.

Through India High Commissioner to Tanzania Mr Binaya Pradhan in Dar es Salaam during one-day auto show over the weekend, seven India’s automakers took part displaying nine brands worth marketing in Tanzania. He further said they are committed to working closely with the government by promoting the automotive industry in line with building the industrial economy. “In the future, we are looking to partner with the government on investing in the construction of the automotive industry in the country to boost the country’s industrial sector,” he further said.

The envoy noted that they have been selling automotive products for a long time in the country, adding, “India is expected to be the world’s third-largest automotive market in terms of volume by 2026. The automobile industry of India currently manufactures 26 million vehicles including passenger vehicles, commercial vehicles, three-wheelers, two-wheelers, and quadricycles. In three months to March, last year it exported some 4.7million cars.” Citing one of the assemblers, he said Maruti Suzuki is the largest car manufacturer in the country, followed by Hyundai and Tata Motors as well as Kia India that is a relatively a new brand and Mahindra now on course. In Tanzania, Tata markets commuter buses and leads in 35-50 passengers’ capacity seats.

On his part, the Ministry of Industry and Trade, Deputy Permanent Secretary, Dr Hashil Abdallah, said the government’s vision was to ensure a friendly environment for investors to invest in the country. “Most of the automotive companies operate in the country import their products and assemble them here,” Dr Abdallah said adding: “The government is ready to support the investors’ business environment by following the rules set by the authorities to ensure that their businesses thrive and contribute to the country’s development agenda.” He further applauded the Indian High Commissioner for organising the exhibition and assuring that the government will work hand-in-hand to develop the automotive sector.

Africa Automotive News l 2021

November-December issue l 2021

Technology

AUTOCHEK Africa launches online cars loans marketplace to deepen mobility includes 15 percent interest rate and repayable for a period of between four and five years. The loans are also processed within 24 hours. Timi added that financing for new cars is part of the company’s vision to unlock a new frontier of automotive fintech and cementing its position as the most innovative auto loan platform in the region. Whereas customers are assured of a good deal for brand new cars and attractive interest rates, distributors also get pre-approved prospective buyers.

utochek Africa, the leading auto tech platform, has launched a dedicated brand new cars section on the Autochek website and mobile app. With this new addition, customers can access digital financing solutions for brand new cars and trucks with repayment tenures of up to 60 months and the lowest interest rates in the market from regional partners such as Ecobank and NCBA with zero percent equity loan product and Access Bank and Stanbic KE with unique financing solutions tailored specially for brand new vehicles with up to 90 percent financing. On the Autochek loan services platform, customers in East and West Africa can access a variety of financing options to purchase new cars and trucks from reputable manufacturers. So far, the platform has on-boarded a network of financing partners and over 30 vehicle brands from OEMs, including key regional players like Inchape (LandRover) and CMC (Ford and Eicher Trucks) in East Africa and

Africa Automotive News l 2021

Dana (Kia), Coscharis (BMW, Landrover), Globe (Mercedes Benz) , Elizade (Toyota) in West Africa. Autochek is also working closely with indigenous manufacturers such as Innosson Motors and Nord Motors. As part of the investment by Mobility54, Autochek has also partnered with CFAO (Toyota, Suzuki, Mitsubishi) across Africa to facilitate auto financing for all CFAO brands. Autochek Africa’s COO, Timi Tope Ologunoye said, “We are excited to partner with financiers and the automotive industry to provide this facility. It is in response to customer feedback to democratise purchase of brand-new cars through great and affordable financing options. It is complemented by Autochek Africa’s residual value analysis tool that can guide financial partners on the condition of the vehicle over time. The Autochek auto loan services platform offers a variety of financing options from over 70 banks, with attractive terms that

According to research, the African automotive estimated market size is currently valued at USD90 billion in 2020, and this is expected to grow by 30 percent largely driven by an increase in financing penetration at 10% YoY. . Due to the impact of COVID last year, there was a decline in overall sales of new cars due to restrictions on production but is fast regaining momentum as economic activities resume. Autochek’s SVP West Africa , Dr Mayokun Fadeyibi said: “We are on a mission to accelerate motorization across Africa by providing financing for brand new and used imports for our customers”. With shifting consumer demands, the Autochek platform is building on partnerships opportunities with automotive manufacturers and financiers, to innovatively provide a more agile, techled approach to deliver options. The company plans to extend its brandnew automobile portfolio through multiple carrier partners within the Autochek platform by the end of the year, with the goal of launching with over 300 new cars listed across all markets. The Autochek mobile app is currently available on Android and is due to be launched soon on iOS.

November-December issue l 2021

Africa Automotive News l 2021

Garage

November-December issue l 2021

How often and how much air should I put in my tyres?

he answer to this depends on a variety of factors including the type of driving patterns, size and load on tires and if you prefer fuel economy over a smoother ride. The recommended inflation pressures are generally mentioned by the vehicle manufacturer on a decal on the door jam or in the glove box, and should be followed for the most part. These recommendations may sometimes not be accurate considering the change in brands of tires and types, but are overall the best advice for all-round driving. The common PSI (pounds per square inch) is 27 to 32 for most passenger minivans, mini-pickups and cars, while the recommended intake for full-size SUV’s and pickups is somewhere in the range of 5 –

The recommended inflation pressures are generally mentioned by the vehicle manufacturer on a decal on the door jam or in the glove box, and should be followed for the most part 8 PSI higher to accommodate the extra weight and size. Speaking of tire pressures, it is important to note that they may differ from front to rear tires. Car experts claim that adding a couple extra pounds of pressure results in better fuel economy as the rolling resistance of the tires is decreased, but this may also be a downside as it makes the tires harder and somewhat takes away from the smooth rolling action on the road. If you tend to carry extra cargo, carpool, towing a trailer, then it is recommended that you add a few extra pounds of pressure to the rear tires only to offset the extra weight. It is important to note that whenever you add extra pressure in the

Africa Automotive News l 2021

above circumstances, do not exceed the level indicated by the tire manufacturer, which is the maximum the tire is designed for and is printed on the sidewall. Adding the extra pounds past the manufacturer’s recommendation could result in tire failure and damage. Checking your tires regularly is important simply because tires leak air and fast. Common air loss in regular driving is approximately a half pound a month, and if you’re notice more than this, then you need probable have a leak in the rim. For this reason, it is important to check your tires well ahead of long trips and at least once a month. The best time to check your tires is in the morning or when they are cold. When the

tires are hot, the air inside tends to expand result in higher readings than normal pressure. Internal tire pressure is also affected by the outside temperatures, where cold weather lowers it and hot weather increases it. So you may have to increase or decrease the PSI by a few notches depending on seasonal variations. Although checking your tires for air pressure is relatively easy, it is important to use accurate gauges, and avoid relying completely on gas stations gauges such as air hoses or compressors. Adding to this, do not measure air pressure by eye, because tires wells especially radial tires wells on radial tires tend to swell up even when the tire is fully inflated. If you continue to add air even thought the tire has been inflated completed, it will be overinflated and result in unforeseeable damage. However, this doesn’t mean that you wait until the tires are near flat to add air as this may result in damage as well. Increasing or decreasing tire pressure in a vehicle is a serious maintenance task, and if you’re unsure or unaware of the procedure, its best left to the professionals.

November-December issue l 2021

Auto Garage

Africa Automotive News l 2021

New model

November-December issue l 2021

Zimbabwe car manufacturer launches African made car

or centuries, African countries have struggled to produce competitive vehicle brands. As such, billions of dollars are spent annually in importing used cars, mostly from Asian giants such as China and Japan. But Zimbabwe-born and South Africabased car designer, Tatenda Mungofa is on a mission to change the face of automotive manufacturing on the continent. The car brand Mureza Auto Company, headquartered in South Africa is set to start assembling its vehicle, Prim8 (pronounced Primate) re-badged from Iran’s SAIPA Quick at Willowvale Motor Industries (WMI) assembly plant in Harare this new year. Mureza-Zimbabwe events co-ordinator and public relations officer, Chidochemoyo Nemhara, said that the vehicle’s selling price will be US$13 500 and the auto company would aim to manufacture 100 cars per month. “We are undoubtedly going to start assembling our vehicles named Prim8 (pictured) at Willowvale Motor Industries (WMI) assembly this year. Our components are manufactured in Iran and South Africa, but Mureza’s ultimate objective is to design and manufacture vehicles for Africans. We are targeting to produce 100 units per month and the vehicles’ selling price will be US$13 500 each. Arrangements for Zimbabwe dollar purchases will be made,” she said. Mureza Prim8

Africa Automotive News l 2021

The Prim8 features a 1,5-litre naturallyaspirated petrol engine, producing 87 kW. As one would expect from a hatchback of its size, the vehicle is front-wheel drive. The best trim option for the local range will include keyless entry, a seven-inch touchscreen infotainment system, SatNav, rear-view camera, parking sensors, and airconditioning. Motorists will also get electronic stability control, tyre-pressure monitoring, a powered driver’s seat, and two airbags. Nemhara said although the current economic situation was unfavorable, Mureza’s efforts would help to create employment and promote investment. “Of course, economic conditions are not favourable for some businesses to thrive,

but establishing a plant here would in a way promote job creation for the locals and it’s a form of the much-needed investment. It means value creation within the market and it gives us ground to establish and train local labour force as well as to promote regional trade,” she said. Nemhara was also confident that their brand would rise to the limelight despite that the market is currently dominated by well-established international brands. “We are not worried much about how our brand will perform on the market, but we aim to solve transport challenges in Africa by creating highly competitive and affordable vehicles that suit the continent’s conditions. That means a reduction of grey imports and the endorsement of the local value chain. Just as the flag rises, eventually Mureza will rise,” she said.

New model

November-December issue l 2021

The car brand Mureza Auto Company, headquartered in South Africa is set to start assembling its vehicle, Prim8 Mungofa said: “We realised that Africa is importing many goods, yet it has the resources to manufacture its own products. “There is also a huge youthful population seeking employment. Job opportunities are scarce, hence as we design and make our own cars, we will create employment.” The journey towards Mureza is a long haul dating back to 2007. A team of professional car designers, including Mungofa as well as co-owners, Pheladi Chiloane and Thulisa Sosibo, are behind the company. The team has been working with other consultants and vehicle component suppliers to develop prototypes. After years of hard work, Mureza clinched a joint venture deal with Iranian car manufacturer, SAIPA Group. The deal entails Mureza to assemble and distribute the Mureza Prim8, while SAIPA provides technical support. “We are now in the process of setting up our first production plant in South Africa,” said Mungofa. “This is only the beginning, we are developing a regional manufacturing plan. We anticipate our presence in at least four countries in the SADC region. “In Zimbabwe, we have engaged a major car assembly firm.” The Mureza Prim8 vehicles come with durable suspension and huge cabins, which

are customised for the African terrain. The vehicles will run on 1,3-litre and 1,5- litre petrol engines. They will also come with modern luxury features like adaptive cruise control, satellite navigation, bluetooth, touchscreen infotainment system, reverse camera and steering controls, among others. Other models in the pipeline include a truck and a Sports Utility Vehicle (SUV). Mungofa said the company intends to utilise the region’s mineral resources. “All these vehicles will carry features that are unique to Africa and will be made with materials from the continent,” said Mungofa. “Some countries have no access to international markets and therefore fail to extract economic value from their idle resources,” he said. “Cowhides make leather, then there is rubber and cotton. Sand makes glass. These raw materials are all important.” Local car battery manufacturers could also benefit from the deal. “Making cars in the region will gradually allow different countries to be part of the value chain. As they supply the various raw materials, we will have a more productive economy,” said Mungofa. “By operating in pre-existing factories in strategic locations, we believe this will stimulate economic

activity and generate downstream benefits.” In terms of transporting raw materials, Mungofa said: “Rail infrastructure is key in moving raw materials and finished products. This project might help revive freight train services in Zimbabwe.” He said vehicles produced in Zimbabwe will be for both the local and export markets. However, the Mureza story is not all rosy. Many potential partners did not believe in the idea. “There were some challenges in Zimbabwe between 2007 to 2012, which made it nearly impossible to conduct basic research,” said Mungofa. “Asking for quotations from component suppliers was met with serious ridicule. When we told them that we wanted to build our own car, they thought it was a joke. “In South Africa, some component manufacturers would call us after hours to provide the necessary information in confidence.” Despite the negative encounters, the company persisted, quietly developing its product. The current vehicle assemblers in Zimbabwe are WMI, Quest Motors, Deven Engineering, and AVM Africa.

Africa Automotive News l 2021

Safety Tips

November-December issue l 2021

Tips for driving on the Highway for the First Time

riving on the highway for the first time can be nerve racking, which is why it’s common for new drivers to only navigate local roads until they gain enough real-world experience to venture onto the interstate. Once a new driver is ready to take on a highway, being fully prepared can help a beginner make a smooth and safe transition from local roads to the interstate. Here are some highway driving tips that new drivers should consider before driving on the highway for the first time.

Pick the right time to start driving on the highway If you’re planning your first highway drive, you want to pick the right time and place. Consider starting off on a highway that isn’t too busy, or during a time of day when less drivers are on the road. You also want to drive on a bright, clear day without any rain, snow or fog that could decrease visibility.

Highway lane changes Establishing proper speed and distance remains key to managing a lane change on an interstate. Drivers should leave four to six seconds-worth of space between their car and the vehicle in front of them as they maneuver. You should also routinely check the rear-

view, side-view mirror and blind spot before switching over. More space means you have more time to avoid a collision or react to debris on the highway.

Start off driving in the right lane When you’re driving on the highway for the first time, you should only drive in the right lane. Young drivers really have no business heading into the left lane, which is intended for passing. “Staying in the right lane will help them interact with traffic coming onto the freeway, and they’ll maintain their speed easier there,” says Maria A. Wojtczak, who owns and operates DrivingMBA, a driver’s-ed business in Arizona.

Always use blinkers on the highway Young drivers must get in the habit of using their blinkers constantly, even if they believe their intentions are obvious. “Blinkers are the only way we have to communicate with other drivers,” says Chris Duquin, owner of Stevens Driving School, which has several locations in the state of New York. “It’s amazing how often drivers cause problems by not using them on highways.”

Keep a wide viewpoint

Africa Automotive News l 2021

Newer drivers tend to stare at what’s right in front of them. But highway speeds and unpredictability demand a wider viewpoint. “They need to look closely in front of their vehicle, but also farther down the road and into the rearview,” Duquin says. “Good drivers continuously adjust their observation points.”

Keep your cool while driving Learning to drive on the highway is about more than proper driving—it’s also about making sure a young driver’s maturity level is up to the task. “They must understand never to take anything personally, especially on a highway,” says Michael Soubirous, a retired California Highway Patrol lieutenant who now writes a local newspaper column in Riverside, Calif., called “On the Road.” “If someone cuts you

off, let it go. You never know the mental state of the other party and maybe they simply made a mistake. Drivers are not perfect, after all.”

Stay focused on the road According to the CDC, drivers under the age of 20 have the highest proportion of distraction-related fatal crashes. That’s why it’s crucial to stay focused on the highway. Don’t use your phone, try to change music or be distracted by talking to friends while driving on the highway. Find out more ways you can prevent teen distracted driving. Have a new driver in the family? Under the Nationwide Family Plan, they’re entitled to all the safety and benefits that you are. We’re here to help you look out for your loved ones.

Safety Tips

November-December issue l 2021

How to Stay Safe in Traffic

Getting through those delays with minimal frustration usually relies more on human behavior than digital innovation

utomakers are constantly coming up with technologies to reduce accidents in daily driving. But the reality remains that accidents, road construction and other factors will inevitably tie us up in delays. Getting through those delays with minimal frustration usually relies more on human behavior than digital innovation. You need to understand what you can control and what you cannot control,” says Patrick Barrett, a former president of the North American Professional Driver Education Association. “There are six factors that affect driving: the road, the weather, the traffic, the time of day, the vehicle and the driver. Guess which of these you have the most control over? Yes, it’s you, the driver.

Allow space for merging: Nearly all long delays require vehicles in a blocked lane to move into a free-flowing one. What keeps this from happening? Motorists’ perception that it’s dangerous to merge. “You need to kindly leave enough space to signal that it’s fine to merge into your lane,” says expert Daniel Gray. Avoid excessive “lane jumping” : As bad as a jam can be, drivers who

incessantly shift from one line of vehicles to another only increase the length of the backup. “You want to focus on the path of least resistance,” says Barrett, who has authored books on driver safety and markets drivered tools for parents at DriverEdinaBox.com. “This is the path that lets you move and lets you see. But this doesn’t mean you constantly lane-jump. Often, choosing the path of least resistance means choosing to stay in your

lane.” Chill out: Keep in mind that traffic happens and there’s really very little you can do about it. Cursing, fuming and honking will only elevate your sense of frustration and potentially create unnecessary trouble. “Remember that you’re not the only one who is late for something,” Gray says, “and that you’re no more special than the person in the next vehicle.”

With that in mind, here are some steps you can take to stay safe on the road:

Africa Automotive News l 2021

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November-December issue l 2021

Africa Automotive News l 2021

November-December issue l 2021

Africa Automotive News l 2021

Africa Automotive Nov-Dec digital issue 2021

Articles inside

How to Stay Safe in Traffic

Tips for driving on the Highway for the First Time

How African automotive marketcan rise from 1.1m to 5m vehiclesannually

Aftermarket guidelines beneficial to automotive industry

The Role ofAutomotive Tires andWheels

Tata Motors: How India’s largest commercial vehicle maker is conquering Africa

Unlocking Africa's automotive aftermarket

Future of the Automotive World in Kenya

Morocco Becomes Africa’s Auto Manufacturing Hub