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VW to Assemble Cars, Launch Ride-Sharing in Rwanda
Volkswagen AG has set up a company in Rwanda that will begin assembling VW-brand Polo and Passat small cars this summer.
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Volkswagen AG has set up a company in Rwanda that will begin assembling VW-brand Polo and Passat small cars this summer.
VW says Volkswagen Mobility Solution Rwanda will partner with CFAO, its long-standing distributor in the country, to initially build several hundred cars from kits at a facility in the capital city of Kigali. VMSR aims to eventually reach an annual output of 5,000 vehicles for the local market.
The new company also plans to launch car-share and ride-hailing services—both new concepts for the Rwanda market—later this year. Each offering will be supported by about 150 vehicles supplied locally by VMSR. VW says customers will be able to arrange rides by using a mobile app being developed by a Rwandan startup company.
VW expects to invest €16 million ($20 million) to set up and launch the projects. They will establish Rwanda as VW’s fourth production country in the sub-Sahara region. The company has been making vehicles in South Africa since 1951, in Nigeria since 2015 and in Kenya since 2016.
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