Chinese auto plant opens in Kenya

March 28, 2012

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Chinese truck manufacturer Foton has opened a 1.6-billion-shilling ($19-million) assembly plant in Nairobi, Kenya's Daily Nation reported on Tuesday (March 27th).

Kenya is providing a tax break to the automaker as an incentive. "Producing right here means the company will avoid paying a 25% duty that is charged if it imports fully built units," said Kenyan Prime Minister Raila Odinga at the plant's launch in the industrial zone outside the capital.

Foton will likely face a tough market, as Kenyans prefer imported less-expensive second-hand vehicles, Odinga said, as second-hand vehicles account for 70% of the market share in East Africa.

Foton plans to focus on trucks, rather than passenger vehicles, to garner market share, the newspaper reported.

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