German car manufacturer Volkswagen (VW) is expanding into East Africa. The company has opened a new assembly plant in Kenya, in the industrial town of Thika, and has also launched plans for a ride-sharing service to take advantage of the increased demand for vehicles in Africa. A few weeks prior, VW signed a deal to build an assembly plant in Algeria, too.
According to Herbert Diess (pictured), VW CEO, the company is expanding its business as overall car sales in Africa are likely to rise by 40% over the next five years.
A report by Deloitte Africa Automotive Insights noted that sales of motor vehicles in Kenya are being driven by a rise in incomes in the country. The report says that if the current trend of 10% to 12% growth per annum on vehicle imports is to be maintained, Kenya will have five million vehicles on the road by the year 2030."
President Uhuru Kenyatta has said that VW's investment is in line with government policy to industrialise Kenya's economy. "With the opening of this facility, I expect to see a lot of VW government vehicles. I hope the county governments will also buy Volkswagen cars," President Kenyatta was quoted as saying.
