South Korean car manufacturer Hyundai is the latest multinational company to venture into the Horn of Africa via Somaliland.
Hyundai launched its fleet of cars in Somaliland joining Coca Cola as the world-renown companies that have invested in the country that is seeking to gain international recognition.
The South Korean car manufacturer has partnered Dahabshiil group of companies to not only introduce Hyundai model of cars to Somaliland but also to the horn of Africa region whose economy has become vibrant thanks to the growing international interest.
“This Hyundai automotive business is not going to be limited to Somaliland, but aims at Horn region as a whole,” Dahabshiil Motors Chief Executive Officer Engineer Awil Sharif said in an interview.
Shariff said the entry of the Korean company into Somaliland and the horn of Africa region is vital given the economic developments that have been taking place within.
“In view of the ongoing developmental projects in the country {Somaliland} such as the DP World’s expansion of Berbera port together with the approved plan to create a free trade zone plus the construction of Berbera corridor highway – connecting Berbera port to the landlocked regions of neighboring Ethiopia, we are quite optimistic that the entry of Hyundai will have great impact in the motoring industry.
Furthermore, our strategic plan includes expanding business to other Somali regions and East Africa as early as practically possible,” he added.
Sharif said they have introduced eight models into the country.
The eight models introduced in the Horn of Africa include Grand Santa Fe, Santa Fe, Tuscon, Creta, Elantra, Grand i10, a 14 seater Commercial Bus, and Light Track.
“Most countries in Africa bring four or five models. We started with eight models and will bring more models in the future depending on the customers’ demand.”
The entry of Hyundai in Somaliland comes just six months after the company opened a 10,000-a-year vehicle capacity assembly plant in the Ethiopian capital Addis Ababa on, its first factory in East Africa.
The Hyundai company operates the largest integrated automobile manufacturing facility in Ulsan, South Korea which has an annual production capacity of 1.6 million units. The company employs about 75,000 people worldwide. Hyundai vehicles are sold in 193 countries through some 5,000 dealerships and showrooms.
Dahabshiil Motors who are the sole distributors of Hyundai vehicles in Somaliland and Somali regions are offering direct purchase and bank financing.
“Dahabshiil Motors’ Hyundai can be purchased through Murabaha (the Islamic financing bank system). We are part of the Dahabshiil Group, so, our customers can buy our cars on finance, which Dahabshiil International Bank makes it easy and convenient for the client,” stated the CEO
“Being the largest company in the region, Dahabshiil has a wealth of market experience to draw on when it comes to the creation of a new viable business. Before thinking about the potential short-term and long-term benefits, the company considers how best they can contribute to the social services.
In terms of the automotive business, the company measured safety-related matters, environmental pollution problems and user comfortability before having decided on importing brand new Left Hand Drive quality vehicles that can replace the existing used Right Hand Drive vehicles being driven on the wrong side of our roads. In short, the main object of the exercise was trying to fill the above stated gaps apparently existing in the local automotive market,” stated Sharif.
While second-hand vehicles dominate sales in the Horn of Africa country, Hyundai hopes locally-assembled cars could prove attractive given the cost of imports due to high taxes.
Says Sharif; “Our partnership with Hyundai is based on collaborative effort, sharing the value of the products and services in a way that can help us meet the highest standards of customer satisfaction.”
The entry of Hyundai in the Somaliland comes at a time when the country’s Ministry of transportation authority announced it will ban imported right-hand drive vehicles by 2020. The Government of Somaliland is also taking drastic steps to ensure safety on the country’s roads and reduce the effects of vehicle emissions created by unroadworthy cars
