New association in plan to boost auto industry

DAR ES SALAAM: STAKEHOLDERS in the auto assembly industry are coming together to establish a dedicated association aimed at accelerating sectoral growth, fostering innovation and enhancing competitiveness within the evolving automotive landscape.

Through this government-led initiative, the already-established committee aims to ensure that the new association is both representative of and responsive to, the needs of the automotive assembly ecosystem.

The Ministry of Industry and Trade Permanent Secretary, Dr Hashil Abdallah, told the ‘Daily News’ recently that preparations are underway to launch the Tanzanian Association of Vehicle Assemblers (TAVA), which will serve as a unified body to represent stakeholders.

“The committee is already in place and we are currently undertaking a comprehensive study to define the association’s scope, functions and focus areas.” “The association will serve as a structured platform for dialogue between the government and assemblers, enabling a deeper understanding of the industry’s challenges and opportunities,” said Dr Abdallah.

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He said they are working directly with producers and the registration of the association is expected to be completed “very soon”. The national association is expected to work closely with the African Association of Automotive Manufacturers (AAAM), to promote the industrialisation of Africa’s automotive sector by supporting policy development, investment facilitation and collaboration with governments.

He described the initiative as a strategic move to support local industrial growth and help the local manufacturers gain greater access to regional markets.

“A dedicated association focused on a single industry makes it easier to identify key interests, offer targeted support and accelerate growth,” he said.

According to the Ministry, the country currently hosts 13 automotive-related factories. Of these, two are full vehicle assembly plants namely GF Trucks and Equipment in the Coast Region and Saturn Corporation in Kigamboni, Dar es Salaam.

Saturn Corporation Managing Director Mr Rehmatullah Habib is optimistic that the move will enhance collaboration, boost local production and open new export opportunities across Africa. GF Trucks has the capacity to assemble up to 200 vehicles per month and has created 300 direct jobs.

Saturn Corporation assembles up to 900 truck heads and 270 tippers monthly, employing 250 permanent staff. The remaining eleven factories focus on trailer manufacturing.

Additionally, the upcoming TATA plant, once completed, is expected to assemble truck heads, tippers and motorcycles, further expanding Tanzania’s automotive production potential.