Car & General Eyes Expansion of Local Motorbike Assembly to Include Electric Motorbikes

Car & General (C&G), a prominent player in Kenya’s motorcycle industry, is positioning itself at the forefront of electric mobility while continuing to strengthen its market share in the internal combustion engine (ICE) sector. During the recent launch of the TVS 125, the company’s Chief Executive Officer, David Chesoni, highlighted plans to expand the firm’s Nakuru-based motorcycle assembly plant to accommodate electric motorbikes. This move aligns with the company’s long-term strategy to tap into the growing electric vehicle (EV) market, signaling its readiness to integrate modern technology while ensuring that traditional internal combustion engines still play a pivotal role in meeting market demands.

Local Assembly Growth and Job Creation

One of the highlights of Chesoni’s address was the firm’s local assembly efforts, particularly with the TVS 125, which is produced with 14 locally sourced parts. This is not just an operational milestone but a strategic one that benefits Kenya’s economy through job creation and the development of local manufacturing capabilities.

Chesoni noted, “We are already doing local assembly and even the bikes we have launched today have 14 parts manufactured locally. This is one of the best decisions the government ever took because it has allowed us to create job opportunities with certain partners who make these parts for us.”

The government’s push towards encouraging local manufacturing has been instrumental in fostering partnerships between global brands and local firms, allowing for knowledge transfer, job creation, and skill development. By assembling motorcycles locally, C&G reduces costs associated with importing fully assembled vehicles, while also boosting local industries that produce parts for the assembly line.

This local assembly initiative fits into the broader agenda of Kenya’s Vision 2030, which aims to transform the country into an industrialized, middle-income nation. The more parts that can be sourced locally, the stronger the local supply chain becomes, and the more resilient the overall industry is to external market shocks such as supply chain disruptions.

Market Share and Growth of TVS Motorcycles

C&G’s collaboration with TVS Motor Company, an Indian motorcycle manufacturer, has been a successful partnership. Chesoni disclosed that of the 3.5 million TVS motorcycles sold worldwide, at least 600,000 of those have been sold in Kenya, underscoring the brand’s popularity in the East African region. The company has successfully built a strong customer base by providing motorcycles that cater to the diverse needs of Kenyan riders, from the growing number of boda boda (motorcycle taxi) operators to personal commuters.

The TVS 125, launched as an ICE-powered motorcycle, comes with notable advancements that appeal to Kenyan consumers. With features such as five gears designed to improve fuel efficiency, tubeless tires for better durability and safety, and additional power and range, the TVS 125 is positioned as a reliable workhorse for both urban and rural settings. The bike is likely to appeal to the boda boda operators, who constitute a significant portion of the two-wheeler market in Kenya.

Chesoni emphasized that the new bike is expected to help C&G further strengthen its market position in the two-wheeler segment. With the number of motorcycles in the country growing rapidly, C&G is well-placed to maintain its leadership in this category, especially by continually adapting its product offerings to suit local needs.

Embracing Electric Mobility

While C&G is committed to strengthening its ICE motorcycle segment, the company is also gearing up to introduce electric bikes in the near future, with the expectation that the market for electric mobility in Kenya will continue to grow. Chesoni mentioned that C&G is already in discussions with TVS to develop electric motorcycles that will be launched when the market is ripe.

“The electric mobility space is coming up, and there is a conversation with TVS. They are working on several products which will be made available over time. We strongly feel there is room for internal combustion engines to support and cover the market for us, and when the right time comes, and after we have tested the right product in the EV space, we will launch one,” Chesoni stated.

This gradual approach is reflective of the cautious optimism that many automotive firms have about electric mobility in emerging markets. While the environmental benefits of electric vehicles are undeniable, the success of these products hinges on several factors, including government support, infrastructure development, and consumer readiness.

The Kenyan government has already indicated its commitment to green energy, with various initiatives aimed at reducing carbon emissions. Earlier in 2024, C&G took a bold step towards electric mobility by introducing electric three-wheelers in the Kenyan market. This foray into electric vehicles was a testing ground for how the Kenyan market would respond to electric-powered transport solutions.

Challenges in Electric Vehicle Adoption

Despite the potential for electric motorbikes, several challenges stand in the way of widespread adoption in Kenya. One of the key obstacles is the country’s relatively underdeveloped charging infrastructure. For electric motorbikes to gain mass appeal, there needs to be a reliable network of charging stations across the country, particularly in rural areas where motorcycles are widely used for transportation and business.

Another challenge lies in the cost of electric vehicles. Currently, electric vehicles, including motorbikes, tend to have higher upfront costs compared to their ICE counterparts. This could be a barrier to entry for many boda boda operators who may not have the capital to invest in an electric bike, despite the lower running costs.

C&G and TVS will likely have to work with the government and other stakeholders to address these challenges if they are to successfully transition to electric motorcycles in the future. Public-private partnerships that promote the development of charging infrastructure, as well as policies that incentivize the purchase of electric vehicles, will be crucial to making electric mobility a reality in Kenya.

Future Outlook

C&G’s move towards electric motorcycles is in line with global trends, as more automotive companies transition towards environmentally friendly products. As electric mobility gains traction in developed markets, there is potential for similar growth in emerging markets like Kenya, provided that the right conditions are in place.

In the meantime, C&G is striking a balance by continuing to focus on ICE-powered motorcycles, which still have a significant role to play in the market. The company’s latest launch of the TVS 125 is a testament to its belief that internal combustion engines still have room for growth, particularly in markets where infrastructure and affordability remain challenges for electric vehicles.

C&G’s strategic approach, which combines local assembly, market expansion, and gradual entry into the electric vehicle space, positions it as a forward-thinking leader in Kenya’s motorcycle industry. As the country navigates the transition towards green energy, C&G’s efforts to strengthen local manufacturing and introduce electric mobility options will play an important role in shaping the future of transport in Kenya.

Conclusion

Car & General’s plans to expand its local motorcycle assembly operations to include electric bikes reflect the company’s commitment to both innovation and local economic development. By sourcing parts locally and assembling motorcycles in Kenya, C&G is contributing to job creation and skill development while also preparing for the future of electric mobility.

As Kenya’s motorcycle market continues to grow, C&G’s balanced approach—focusing on both internal combustion engines and electric vehicles—positions it to remain a key player in the industry. The introduction of electric motorbikes will likely depend on the development of supporting infrastructure, but with ongoing efforts from both the public and private sectors, the future of electric mobility in Kenya looks promising.