The troubled Mobius found a mysterious savior and promoted the development of local industry

Mobius Motors said it has reached a deal with an undisclosed buyer, saving the local car company from collapse.

The company said last week that its shareholders have agreed to liquidate the company and appointed KVSK Sastry as liquidator to liquidate the company. The company has also invited creditors to attend a meeting scheduled for Thursday, August 15.

However, on Thursday the company announced it had accepted a bid from an unnamed buyer and notified that a meeting of creditors would be held at a later date.

“On August 14, 2024, Mobius Motors accepted an offer for 100% of its shares from an undisclosed buyer. Both parties hope to complete the transaction within 30 days,” said Nicolas Guibert, director of Mobius.

“Like this, Please be informed The creditors’ meeting originally scheduled for 9 a.m. on August 15 at the Mobius plant will be postponed to a date to be notified.”

The company began producing the Mobius 13 years ago, aiming to capture the local market with a low-cost rugged SUV tailored for local conditions, including rough roads.

The company initially started local assembly by outsourcing vehicle assembly functions to Kenyan car manufacturers in Thika but later established its own assembly plant in Nairobi’s industrial area.

Its first model was launched in 2014 and retailed for about Sh1 million. Later models with more features were sold for Sh1.5 million, while the 2022-produced Mobius III is priced at Sh3.9 million, significantly less than a second-hand imported car with similar performance.

Mobius hopes that by designing a vehicle suitable for local roads and relatively inexpensive, Kenyans can be enticed to buy imported second-hand cars.

However, despite the seemingly huge local market, no progress has been made.

Most of the vehicles used on Kenya’s local roads are imported. In 2023, According to the Kenya National Bureau of Standards, the number of newly registered vehicles (excluding motorcycles) reached 119,205 in the first half of this year.

Of these new vehicles, only 10% (13,106) were assembled in Kenya.

In recent years, the local assembly industry has made some progress and maintained steady growth as more and more companies have set up operations locally.

Entering the local market will also serve as a springboard for expansion into the region, where there are few local assembly plants for vehicles and the market relies on imports.