KENYA WATENGENEZA GARI AINA YA MOBIUS II, NA KUUZWA KWA SH 950,000

The Mobius II has entered showrooms at a price of Sh950,000. PHOTO | COURTESY 

A Kenyan-made vehicle that is designated as Africa’s cheapest car has hit the showrooms, bringing to reality the dream of an entrepreneur who designed it four years ago.

The car, which trades under the brand name Mobius, entered the showrooms this month at a price of Sh950,000 – making it the lowest priced new vehicle in the country.

 

Mobius Motors is the car maker while Thika-based Kenya Vehicle Manufacturers (KVM) is the assembler of the car that is designed for Africa’s rough terrain and off-road driving.

The vehicle comes with extras such as air conditioning and power steering.

Mobius, whose design and engineering works is supported by US billionaire Ronald Lauder, has opened a showroom at Sameer Business Park on Nairobi’s Mombasa Road.

Mr Lauder’s financial backing has helped Mobius scale up its production besides speeding up its journey to the market.

KVM has assembled 50 units since Mr Lauder injected millions of shillings into the operation through Pan African Investment Company (PIC) and has since sold 10 units.

READ: US tycoon invests in assembly of Africa's cheapest car in Thika

Mobius Motors is currently looking for distributors in Nyeri, Maua, Meru and Murang’a, and is mainly targeting rural transport.

The car can seat eight passengers, including the driver, and it has a large cargo space. Mobius’ promoters are also banking on the vehicle’s efficient fuel consumption and easy maintenance to establish it as the car for rural folks.

It has a loading capacity of 625 kilogrammes and a top speed of 160 kilometers per hour achieved using a five-speed manual transmission.

At Sh950,000, the car is significantly cheaper than the lowest priced showroom models in the market that cost more than Sh2 million.

Mr Lauder, whose worth is estimated at $3.8 billion (Sh330 billion) by Forbes magazine, has offered Mobius an undisclosed amount of convertible debt to help it assemble the first 50 units this year and establish a distribution network.

A convertible debt is a loan that can be turned into equity or stock ownership at a future date. Savvy startup investors prefer it because it helps them secure investment funds without setting a valuation on a company — a difficult process for a pre-revenue company.

Mr Lauder made his money from cosmetics giant Estée Lauder and served as US ambassador to Austria from 1986 to 1987. Dana Reed, the chief executive officer of PIC, sits in the board of Mobius Motors.