The Swedish-Kenyan electric vehicle manufacturer Roam has expanded its facility off Mombasa Road in Nairobi, where it intends to build up to 50,000 motorcycles annually.
Also, the building acts as the business's East African headquarters. The factory will manufacture its Roam Air electric motorcycles and include a battery research and development lab.
The firm stated in a statement that the new facilities would allow it to scale up production of the Roam Air and have an annual production capacity of up to 50,000 motorcycles, which will be reached in a few years.
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At retail, the Roam Air costs $1,500. (Sh204,120 at current exchange rates). The range (distance travelled) of its two batteries is 140 kilometres. The motorcycle can go at a top speed of 90 km/h.
Roam is one of the pioneers in the electric mobility market, which is expected to take off as more nations impose regulations on or outright ban internal combustion cars and motorcycles to safeguard the environment.
In addition, the business is testing a Roam Rapid electric bus in Nairobi in preparation for eventual scale manufacture.
When the government introduced tax benefits to promote domestic production, assembling electric motorcycles became more alluring.
Excise duty is waived for locally assembled electric motorcycles (Sh11,608 per unit). Parts destined for assembly plants are also subject to a 10% import duty.
Petrol-powered motorcycles built locally continue to be more affordable, but the allure of electric vehicles is reflected in their lower ongoing maintenance or ownership expenses.
According to a previous study funded by UKaid, petrol motorbike riders earn approximately $120 (Sh16,300) per month but could save 35% by going electric.
Individuals, logistics companies, and public transportation riders have been the primary buyers of motorcycles over the last decade.
According to official statistics, the number of motorcycles in the country increased from 1.308 million in 2017 to 2.258 million in 2021. This represents a five-year compound annual growth rate of 11.54 percent.
Motorcycles are well-liked because they are suitable for quick and effective transportation, especially in crowded cities and towns. They are also successful at travelling final mile in both urban and rural regions.