Lifan Motors to Expand in Ethiopia

Lifan Motors is to launch a five million US dollar expansion project with the intention to make the availability of spare partssatisfactory and increase the after sale service of the company.

The present expansion project is expected to help the company be more competitive in the industry by equipping it with better technology as well as allowing it to open new branches in different locations with designated showrooms, and by setting up new service stations.

The company is planning from its current base in Kality district to the Industry Zone at Gellan, east of Addis Ababa in the coming year. Lifan also expects to open new branches at Dire Dawa, in addition to the branches Mekele and Hawassa. A service station will also be opened around Kera, Addis Ababa, within a month.

The sale of Lifan cars is growing because of the speedy delivery of car and the bankruptcy of its major competitor in Ethiopia, Holland Car. The company has sold more than 2,500 cars out of which LIFAN-520 model are the majority. Demand for the recent model Sport Utility Vehicle (SUV), X-60,  is also on the rise. 

Lifan Motors Plc started with a capital of 1.5 million US dollars, grew to five million US dollars by 2010, is now planning to reach 15 million US dollars after completion of the expansion program.

Source: Capital