Isuzu East Africa, the Japanese manufacturer of heavy commercial vehicles, is considering establishing an assembly plant in Tanzania if the current demand trend stays high. This potential investment aligns with the ongoing efforts within the East African Community to bolster the region’s automotive sector.
Tanzania’s Automotive Industry
Sandra Njagi, Head of Corporate Planning and Strategy at Isuzu East Africa, shared that Tanzania’s automotive industry currently produces approximately 95,000 vehicles annually, which include cars, light and medium trucks, buses, pickup trucks, and SUVs. However, she noted that the market is heavily reliant on used vehicle imports from Asia and Europe, which represent 94% of all vehicle sales in Tanzania. She emphasized that greater affordability of new vehicles could mitigate the dominance of imported used cars.
Sandra expressed optimism about the industry’s potential for growth, citing Tanzania’s geographic advantages, developmental prospects, and key infrastructure projects aimed at enhancing national and regional connectivity. During a recent roundtable in Arusha City, she was accompanied by EAC Secretariat representatives and CEOs from the East African Business Council.
Investment in the Automotive Sector
EAC Secretary General Veronicah Nduva highlighted the significant investment opportunities available in the automotive sector, given the region’s population, land size, and economic activities. She reported that the growth of the automobile industry has been incorporated into the EAC’s budget for the fiscal year 2024–2025.
As of December 2023, Isuzu East Africa leads the automotive assembly sector in East Africa, assembling over 6,000 vehicles per year and commanding a 45% market share. In Tanzania, Isuzu operates through its authorized dealer, Al Mansour Tanzania, which features a state-of-the-art sales, service, and spare parts facility on Nyerere Road in Kipawa, along with 15 accredited service centers across major cities, ensuring wide coverage and robust aftersales support.
Isuzu offers a diverse range of light and medium commercial trucks, buses, pickup trucks, and sports utility vehicles (including the Isuzu mu-X) in Tanzania. During the recent Roundtable meeting, Isuzu showcased two of their trucks, which are specifically designed to withstand East African road conditions, weather patterns, and transportation demands.
