China’s Jiangling Motors Corporation makes Kenya debut

From the newsletter

Jiangling Motors Corporation (JMC), a Chinese motor vehicle manufacturer, has entered the Kenyan market. JMC, which makes both fuel and electric vehicles, has picked Caetano Kenya to be its official distributor in the country. The company has a dedicated EV subsidiary called JMEV and has sold more than 100,000 EVs globally, namely the EV2, EV3 and Elight models. 

• The entry of JMC brings the number of Caetano brands to five, making it one of Kenya’s largest motor vehicle dealers. Caetano is also the official dealer for Kia, Hyundai, Ford and Renault in Kenya. These firms have a strong lineup of EVs, with Hyundai’s Kona, Ioniq 5 and Ioniq 6 especially popular.  Kia’s EV6, EV9 and Nero also have significant traction in the global market.   

• JMC has made its Kenya debut with the Vigus Pro double-cabin pick-up, Vigus Plus single-cabin pick-up and N720 Carrying Plus truck. It is expected that the all-electric EV2, EV3 and Elight models will follow based on demand in the country. 

More details

• Caetano will assemble the JMC vehicles locally. The company has already started to receive Completely Knocked Down (CKD) kits from China, which will then be assembled at KVM (Kenya Vehicle Manufacturers).

• Looking ahead, Caetano Kenya anticipates a strong interest in the JMC brand, with expected sales of at least 100 units in 2025, driven by the growth of local industries. Founded in 1948, JMC now exports to more than 70 countries and produces up to 545,000 vehicles annually. American motor vehicle giant Ford has a 32% stake in the company. 

• JMC’s EV subsidiary, JMEV, operates as a joint venture with Groupe Renault holding a 50% stake, JMC owning 37%, and the Hong Kong government owning 13%. JMEV offers a range of EV models, including hatchbacks like the EV3 and compact city cars like the Xiaoqilin. 

• JMEV has expanded its operations to over 20 countries globally, showcasing its ambition to become a global EV leader. Their production facilities, such as the Kunming plant in China, have a capacity of up to 100,000 cars per year. 

• JMC joins more than a dozen car manufacturers that have official dealerships in Kenya. Others include Toyota, Nissan, Hyundai, Ford, Renault, Volkswagen, BMW, Mitsubishi, Isuzu, Honda, Mercedes-Benz among others. In the EVs segment, BYD, the world’s second largest EV manufacturer, has a dealership with Loxea Kenya.

• Kenya has witnessed a rapid growth in EVs in recent years, mainly driven by the introduction of a special electric mobility tariff and a reduction in excise duty on electric vehicles from 20% to 10%. The East African country has also exempted fully electric cars from value-added tax, and has seen a quick expansion of its charging infrastructure. 

Our take

• JMC’s strategy to assemble vehicles locally through CKD kits at KVM is likely to spur job creation and enhance Kenya’s industrial capacity. As CKDs attract lower taxes than complete vehicles, it could also reduce costs, making their vehicles more affordable for the Kenyan market and increasing accessibility.

• The entry of new brands such as BYD and JMC could see Kenya experience accelerated EV adoption. This may further encourage investment in charging infrastructure, partnerships, and government incentives to support the transition to sustainable mobility. 

• As more local car dealers like Caetano opt to assemble vehicles locally, this is increasing Kenya’s technical capacity to make vehicles. In the long term, this will prepare Kenya to assemble electric cars in the future when it will make economical sense to do so.