Kenya Vehicle Manufacturers (KVM) has resumed production of Volkswagen models at its Thika plant, marking a significant milestone in Kenya’s automotive industry. The renewed partnership between Kenya and Germany signals a fresh attempt by the German auto giant to reclaim market share in a sector largely dominated by used imports. With the assembly of models such as the Touareg, Tiguan, and T-Cross, this development underscores Volkswagen’s strategy to strengthen its presence while contributing to Kenya’s industrialization goals.
This renewed rollout comes nearly a decade after Volkswagen’s earlier effort with the Polo Vivo struggled to gain traction, hindered by low volumes and stiff competition from secondhand vehicles. By introducing a broader lineup of vehicles, Volkswagen is positioning itself more strategically to meet the rising demand for new cars in Kenya. The company’s decision reflects a long-term commitment to the market and highlights its confidence in the country’s growing automotive sector.
The Thika facility, which already produces Mercedes-Benz trucks, Tata units, and locally built electric buses, is now expanding its portfolio to include Volkswagen. This expansion is expected to create jobs, strengthen technical expertise, and open opportunities for local parts suppliers. More importantly, it supports Kenya’s push to establish itself as a regional hub for vehicle assembly, boosting local manufacturing capacity while reducing dependency on imports.
Volkswagen’s investment also aligns with its global strategy of offsetting challenges in North America and Europe by tapping into emerging markets. By scaling operations in Kenya, the company not only meets local demand but also sets the stage for regional distribution across East Africa. This initiative highlights the broader economic impact of automotive assembly, creating value chains that benefit businesses, workers, and consumers alike.
Volkswagen Resumes Kenyan Assembly Operation, Targets Local Market
