New African car brand to launch at Nasrec

A new ‘African’ car brand is set to make its debut at Automechanika Johannesburg, which opens at the Expo Centre at Nasrec on Wednesday.

The first model to be launched by the Mureza Auto Company is the Prim8, a crossover/hatchback that will be assembled initially from semi-knocked-down (SKD) kits in the Automotive Supplier Park in Rosslyn, Pretoria.

The target is to offer the fully equipped top Prim8 model at between R180 000 and R200 000.

African nations

It is planned that production will later shift to the Willowvale assembly plant in Zimbabwe and the former Hyundai plant in Botswana, according to a statement issued by Messe Frankfurt South Africa, organiser of Automechanika Johannesburg. 

The reference to the Hyundai plant in Botswana presumably refers only to the premises where the Hyundai plant was located. 

A consortium of Kimberley businessmen in the Northern Cape in November 2000 bought the plant of the Motor Company Of Botswana (MCB) for $7.2 million, with the building acquired by a local Botswana consortium for $5.5 million.

Funding and expertise

The new Mureza business is being driven by a group of Africans from various countries and is backed by funders in the United Arab Emirates.

It initially has a joint venture with the Saipa Group, an automotive company based in Iran, for platform sharing and the supply of some of the other major components. 

The company says its ultimate objective is to design and manufacture vehicles in Africa for African drivers.

Tatenda Mungofa, a member of the group of Africans driving the project, said the initial local content target is 40%, with significant increases in the short to medium term.

An alternative to used imports

Explaining the rationale and motivation for the project, Mungofa said there is a void between new vehicles and used vehicles currently sold in African countries and that his team proposes filling this gap with new models priced not much above the cost of used imports, which are heavily taxed in certain markets.

“We will also engage with the people selling used imports to retail our new models and will assist them in setting up service facilities where this is viable, or else we will appoint independent servicing outlets in the various SADC [Southern African Development Community] countries that we are targeting as a first step for our new company,” he said.

Mungofa added that in South Africa Mureza is also looking to sell its various models through used vehicle outlets instead of setting up franchised new car dealerships.

“Online selling will be important for us too,” he said.

Mungofa, who indicated that he has been involved in selling used imports in Africa for the past 10 years, said Mureza had been preparing for three years to make its dream a reality.

He said South Africa is regarded as the hub of the automotive business in Africa and for this reason it is using the country as its headquarters and first assembly plant.

Creating opportunities

“We are looking at cooperating with smaller component suppliers who are not yet able to handle big production runs and our business will help them grow their businesses.

“We are also looking for local entrepreneurs to get involved with the various facets of our business to give it a true African flavour. We see our venture as revitalising the motor industry in several African countries and providing much-needed job opportunities.

“For instance, we are looking at building up employment at Rosslyn to 1 000 people, with a lot of focus on manual work, as we grow production from 10 to 35 units a day.

“We intend starting assembly early in 2020,” he added.

Mureza Auto Company has an ambitious product plan. It intends creating a half-ton pick-up, a sedan, and a high-riding mini-SUV off the Prim8’s X100 platform.

The company also has a battery-electric platform for the X200 platform under development in South Africa by Energy Doctors and plans to locally develop a range of one-ton pick-ups and a panel van under the Tusker model name.