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Africa|Business|Financial|Motors|Roads|Sustainable
Africa|Business|Financial|Motors|Roads|Sustainable
africa|business|financial|motors|roads|sustainable

Kenya's Mobius, maker of rugged cars for African roads, calls it a day

A Mobius II SUV

A Mobius II SUV

Photo by Reuters

6th August 2024

By: Reuters

  

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Kenya's Mobius Motors, which started making rugged, low-priced SUVs designed for Africa's roads a decade ago, has decided to stop operating due to financial challenges, a company statement and a shareholder source said on Tuesday.

Mobius, founded by a London-born investor who experienced the continent's bumpy roads while working for a forestry company in Kenya, found tax hikes in the East African country meant its business model was no longer sustainable, the source at one of the company's shareholders told Reuters.

"The business could not sustain itself. There were some challenges," said the source, asking not to be named.

The owners considered moving production to a different country, but that option was rejected due to the logistical challenges of moving the existing assembly line from Nairobi, the shareholder added.

Mobius initially produced a boxy, no-frills SUV designed for the modest budgets of African consumers, going for 1.3-million Kenyan shillings, equivalent to about $13 000 at the time and roughly half the price of an imported second-hand SUV.

Edited by Reuters

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