Mobius Motors, a Kenyan automaker that made waves with its innovative approach to building low-cost, sturdy SUVs for the African market, has unfortunately announced its decision to cease operations.
The company, backed by Playfair Capital and led by founder Joel Jackson, faced insurmountable challenges that ultimately led to its voluntary liquidation after attempts to rescue it fell through.
The decision to wind up Mobius Motors came after a shareholder meeting on August 5, 2024, where it was resolved to place the company under liquidation as per the provisions of the Insolvency Act.
The company’s debts continued to mount, making it increasingly difficult to settle suppliers and pay employee salaries.
Mobius Motors, established in 2009, gained recognition for its unique approach to manufacturing affordable SUVs designed specifically for the rugged terrains of Africa.
The company’s first model, introduced in 2014, was priced at $10,000, significantly lower than the prevailing market prices for SUVs in Kenya.
With a focus on catering to small and medium-sized enterprises (SMEs) operating in sectors such as infrastructure, agribusiness, and remote supplies, Mobius aimed to provide reliable vehicles that could navigate challenging roads with ease.
Despite raising $56 million in funding across multiple rounds and releasing newer models like Mobius II and Mobius III in subsequent years, the company struggled to establish a foothold in the competitive Kenyan automotive market.
The influx of second-hand vehicle imports from countries like the UK, Japan, and other Asian nations posed a significant challenge for Mobius Motors, ultimately impacting its ability to attract customers and sustain its operations.
Joel Jackson’s vision for Mobius Motors was rooted in a commitment to addressing the unique transportation needs of African businesses and communities.
The company’s emphasis on durability, affordability, and adaptability to local conditions garnered attention and praise within the industry.
However, the harsh realities of operating in a challenging business environment, coupled with existing market dynamics, presented formidable obstacles that Mobius Motors could not overcome.
As Mobius Motors embarks on the process of liquidation, the legacy of its innovative approach to automotive manufacturing in Africa will endure.
While the company’s journey may have come to an end, the impact of its efforts to revolutionize the automotive industry on the continent will be remembered.
Joel Jackson’s pioneering spirit and dedication to creating vehicles tailored for African roads have left an indelible mark on the landscape of mobility solutions in the region.
Despite tying production to pre-orders with a refundable deposit of $384 (KES50,000), Mobius faced challenges with low uptake of its models in the market.
However, things started to turn around for the company in 2015 when it began mass production after securing funding from various investors.
With backing from Playfair Capital, a UK-based VC, as well as support from Chandaria Industries, a Kenyan-based manufacturer, DFC, a US government development corporation, and PanAfrican Investment, a private investment firm, Mobius was able to scale up its operations and reach a wider consumer base.
This strategic partnership allowed the company to expand its reach and increase its production capabilities, ultimately leading to growth and success in the market.
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