December 11 2018

Rwanda’s Akagera Motors in deal with Mercedes Benz

Source: The Exchange – Africa's Investment Gatway

Akagera Business Group (ABG) has landed a partnership deal with renowned vehicle manufacturer Mercedes Benz, as the German investors continue to flex their muscles in the Rwandan market.

The local car industry in Rwanda is gaining pace and has interested in various foreign companies to invest in the industry.

Akagera Motors which is also the exclusive distributor for Toyota (Japan), HINO (Japan), Mahindra & Mahindra (India) and Ashok Leyland (India), Fuso(Japan), Nissan (Japan), and Foton (China), will become the exclusive Mercedes Benz sales and service dealer in Rwanda. The partnership will enable the car dealer located in Kigali to deliver among the latest model of the global automobile marque.

The launch of the deal commemorated over the weekend saw Mercedes Benz unveil the new Mercedes-Benz Actros, fitted with the latest technology to conquer the African terrain. Among the changes made for the commercial heavy duty truck include fuel efficiency, reliability and robustness.

Commenting on the Mercedes – Akagera partnership during the event that premiered as well passenger vehicle models, the Managing Director of AKAGERA BUSINESS GROUP (ABG), Vinay Gorajia noted that, “ABG is committed to becoming your trusted business partner in transport and logistics needs. Not only from the aspect of selling your products but the long-term relationship of servicing the products for you so that all the cost of ownership is as low as possible, which will translate into a very good financial position for your company.”

“Asset management is one of the key factors that many companies struggle with because of the cost of ownership from maintenance and fuel consumption point of view. This is a key element we are going to be focusing on in 2019 with the most recent upgrades and how we can assist you.”

In November last year, Akagera Motors unveiled new heavy duty FUSO models including Fuso Canter, Fuso FI 1217, Fuso FJ 1823 R and Fuso FJ 2528 C and FJ 2528 R. There is an increasing demand for heavy commercial vehicles in the Rwandan market that has opened investment opportunities for foreign firms to establish business ties with the local industry to tap into the potential available.

Commenting on the introduction of the new Actros and new partnership, Torsten Bauerheim, Head of Sales and Customer Service at Mercedes-Benz Trucks said, “All together we deliver you the best to the cost of ownership. You prove every day that business and our trucks are successful together. All this would not be possible without great cooperation with AKAGERA MOTORS our valued distributor for Rwanda. We are proud of our relationship with ABG as a strong network is the basis of our business. We move to enter into a new dimension.”

German investors continue to establish their presence in Rwanda with the ease of doing business in the country luring companies. Volkswagen, another German automaker established an assembling plant in Rwanda, rolling out its first ‘Made-in-Rwanda’ Polo car in July this year.

The investor stiffens competitions with both Japanese and Chinese vehicle manufacturers which have found favour with many buyers due to their affordable prices and availability for spare parts.