Roam, a Swedish-Kenyan electric vehicle company, has opened a larger plant off Nairobi’s Mombasa Road, where it expects to assemble up to 50,000 motorcycles per year in the medium term.
The facility also serves as the company’s East African headquarters. Aside from the production of its Roam Air electric motorcycles, the facility will house a battery and development lab.
“The new premises have an annual production capacity of upwards of 50,000 motorcycles that will be reached in a couple of years and will enable the company to ramp up production of the Roam Air, the company’s electric motorcycle,” the company said in a statement on Thursday.
The Roam Air retails for $1,500 (Sh204,120 at current exchange rates). Its dual battery has a range (distance covered) of 140 kilometres. The motorcycle has a top speed of 90 kilometres per hour.
Roam is one of the early players in the electric mobility space, which is set to become dominant in the future as more countries restrict or ban internal combustion vehicles and motorcycles to protect the environment.
In addition, the company is testing an electric bus called Roam Rapid in Nairobi ahead of potential mass production.
The assembly of electric motorcycles has become more appealing since the government issued tax breaks to encourage domestic production.
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.
Locally assembled motorcycles powered by petrol remain more competitive in terms of pricing, but the appeal of electric units is seen in their lower long-term ownership or running costs.
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, representing a compound annual growth rate of 11.54 percent over the five years.
Motorcycles are popular due to their suitability for fast and efficient transportation, particularly in congested cities and towns.
They are also effective at reaching last-mile destinations in both urban and rural areas.
