The South Korea-based Hyundai Motor Co. has set up a 10,000 vehicle-per-year assembly plant in Addis Ababa, Ethiopia. The plant was officially opened on Thursday, making it the company’s first plant in the East African market.
The popularity of Second-Hand vehicles in East Africa
Though as a country, Ethiopia has one of the lowest car ownership rates in the world; two cars per every 1,000 people according to a Deloitte 2014 report. The country sits in a region where second-hand cars are popular.
Ethiopia’s neighbors like Kenya, Uganda, and Tanzania have mostly second-hand vehicles on their roads. Hyundai is betting on locally assembled cars being affordable than imported fully-assembled vehicles, and that will attract users from the second-hand market. Since the locally assembled cars would be affordable.
Importing fully assembled cars typically attract high taxes making it a privilege of the affluent in the society. The rest have to make do with imported second-hand cars, Hyundai is targetting this market by giving them a new first-hand car at affordable prices.
Hyundai has partnered with former Olympian winner turned businessman Haile Gebrselassie. The former athlete during a press briefing said the …read more
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