Mobius Motors, a Kenyan automaker renowned for its rugged, affordable SUVs tailored to Africa’s challenging roads, has announced its closure after a decade of operations.
The company cited insurmountable financial challenges as the primary reason for the decision.
A spokesperson for Mobius confirmed the news on Tuesday, stating that the company would initiate voluntary liquidation proceedings.
Creditors are scheduled to convene on August 15th to vote on the matter.
Founded by a British investor with firsthand experience of Africa’s road conditions, Mobius aimed to provide a practical and cost-effective vehicle solution for the continent.
The company’s initial model, a no-frills SUV priced significantly lower than imported options, resonated with many African consumers.
However, the company faced mounting challenges, including increased taxation in Kenya, which eroded its business model’s viability.
Exploring options to relocate production was considered but ultimately dismissed due to the complexities involved in transferring the assembly line.
Mobius was part of a broader push to establish indigenous automotive industries across Africa.
Despite the company’s closure, other local manufacturers like Uganda’s Kiira Motors and Nigeria’s Innoson Motors continue to operate in a competitive market dominated by established global automakers.
The demise of Mobius highlights the challenges faced by local carmakers in Africa, including stiff competition from second-hand imports and the complexities of operating in developing economies.