The french car maker PSA and Mesfin Industrial Engineering Enterprise (MIEE) have partnered to assemble Peugeot cars in Ethiopia. Accordingly PSA and MIEE have built a new Peugeot assembly line as part of the current MIEE factory. The new Peugeot assembly plant cost 1.2million USD and will make Peugeot 2008, 301 and 208 models. The factory located at Mesfin Industrial Engineering will make 1,200 Peugeot cars in Ethiopia. The cars will be available for sale in the country and it’s neighbors.
PSA is a french automotive and motorcycle manufacturer. It makes Peugeot and Citroën, the two world renowned french models. Of the two PSA car models Ethiopian know Peugeot very well. Especially the old and classic are famous among drivers.
On the other hand, Mesfin Industrial Engineering is a local auto manufacturer and assembler. Located in Mekele, Ethiopia. MIEE entered Ethiopia’s vehicle market in 2011 when it began assembling German MAN trucks for sale locally. It currently assembles three automobile brands for Geely, as well as Sonalika tractors in collaboration with International Tractors of India. MIEE is the first company in Ethiopia to assemble European car in Ethiopia. Other notable partnerships include:-
PSA executive vice president for Middle East and Africa Jean-Christophe Quémard said that this is just a start for the whole operation.
On a similar enthusiastic note General Manager of MIEE, Habte Hadish said “On the basis of the size of Ethiopia’s car market we look to be producing about 30,000 Peugeot cars in Ethiopia per year”. Besides Hadish continued say by saying “MIEE has the exclusive right to assemble Peugeot cars in Ethiopia, which are being assembled in the same facility used to assemble other brands of sedan cars,”. Then he said that “The investment (in) the partnership with Peugeot (PSA) is related to specific assembly tools.”
The country’s growing economy have created a demand for cars in Ethiopia. Furthermore the rough tax imposed on imported vehicles makes cars made in Ethiopia an obvious option for locals. As a result we can easily see these partnerships and plants flourishing in the near future.
Friday, July 15, 2016