Mobius Motors: Rising taxes, competition ends Kenyan SUV maker’s journey

Mobius Motors, the Kenyan car manufacturer known for its rugged, affordable SUVs tailored for African roads, is set to shut down operations after a decade of battling financial difficulties.

Founded by a London-born investor inspired by Kenya’s challenging road conditions, Mobius Motors aimed to offer practical, cost-effective vehicles for African consumers. The company’s flagship model, the Mobius II, initially sold for 1.3 million Kenyan shillings (about $13,000), approximately half the price of a second-hand imported SUV.

Despite its innovative approach, Mobius Motors struggled to maintain its business model due to escalating tax hikes and financial pressures. “The business could not sustain itself. There were some challenges,” a shareholder source revealed, speaking on condition of anonymity.

In its early years, Mobius garnered attention for its no-frills, durable SUVs designed to handle the tough terrain of the continent. However, as tax increases and operational costs mounted, the company found itself unable to compete effectively. Efforts to relocate production to another country were also deemed impractical due to the complexities involved in moving the assembly line from Nairobi.

Mobius Motors was part of a broader initiative to boost local automotive manufacturing in Africa. Other home-grown vehicle manufacturers included Uganda’s Kiira Motors, Ghana’s Kantanka, and Nigeria’s Innoson Motors. These efforts aimed to stimulate job creation and economic growth across the continent.

However, the competitive landscape remained tough. Global giants like Toyota and Volkswagen expanded their presence in East Africa, intensifying competition with their established brands and increasing the pressure on local manufacturers.

As Mobius Motors prepares for voluntary liquidation, creditors are scheduled to meet on August 15 to vote on the company’s closure. The decision marks a significant moment for Kenya’s automotive industry, reflecting the broader challenges faced by emerging vehicle manufacturers in the region.

Mobius’s departure highlights the ongoing struggle to balance local innovation with the realities of a competitive and evolving market landscape.

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