France’s PSA Group, the maker of Peugeot and Citroen cars, said on Saturday it had signed a contract to assemble Peugeot brand vehicles in Kenya. The assembly will start in June 2017 with an annual volume of over 1,000 units in order to meet the expectations of the Kenyan market.
PSA, which wants to reduce its dependence on European sales, will assemble the Peugeot 508 and the new 3008 SUV from kits of pre-assembled modules with local partner Urysia. The Peugeot franchise in Kenya is held by Urysia, which has held the sole importer and distributor rights in Kenya since 2010.
PSA’s agreement with Urysia is part of PSA’s strategic profitable growth plan, “Push to Pass” and materializes the PSA Group’s ambition to develop internationally.
The signing ceremony took place at the Kenyan State House, the President’s residence in Nairobi, in the presence of the President of Kenya, Uhuru Kenyatta; the French Minister for the Economy and Finance, Michel Sapin; Urysia CEO, Claude Mwende; and Jean-Christophe Quémard, the PSA Group’s Executive Vice-President for the Middle East & Africa.
The Peugeot brand previously assembled vehicles in Kenya between 1974 and 2002.
“Peugeot cars have always been renowned for resilience, durability and reliability. We are proud to welcome them back home,” said Kenyatta.
Jean-Christophe Quémard added: “This investment in Kenya is part of the long-term strategy of the PSA Group to increase its sales in Africa and the Middle East, with the aim to sell a million vehicles in 2025. These local production capacities will serve the region’s markets and meet the expectations of our customers and the specific features of each country.”