Automotive Trade Fair Opens With New Locally Assembled Geely Addis Cars

Addis Fortune (Addis Ababa)

Workineh Zewdie

30 May 2011

The International Automotive & Industrial Engineering Trade Fair opened on Wednesday, May 25, 2011, at the Addis Abeba Exhibition Centre. The trade fair, which has become an annual fixture for showcasing the latest trends in the automotive sector, integrated industrial engineering as a component in the event that was themed, “Scan globally, renovate locally.”

This 1927 Mercedes replica was imported by Adika Tour and Travel Plc from Germany and displayed at the 8th International Automobile & Industrial Trade Fair, from May 26, 2011. It was the highlight of the exhibition.

The International Automotive & Industrial Engineering Trade Fair opened on Wednesday, May 25, 2011, at the Addis Abeba Exhibition Centre. The trade fair, which has become an annual fixture for showcasing the latest trends in the automotive sector, integrated industrial engineering as a component in the event that was themed, “Scan globally, renovate locally.”

More than 74 automobile and industrial engineering companies, including 10 foreign exhibitors, participated in the five-day fair.

ED Stellar Trading, the organiser, had initially invited 12 automobile and industrial companies from abroad, but two Indian companies did not attend, according to Fasika Debebe, administration and business manager at ED Stellar.

ED Stellar aimed to promote and create a standardised and modern marketing network for the sector between the manufacturer and customers, Eshetu Belay, general manager of ED Stellar, said in his speech at the opening ceremony.

Over the previous seven years, visitors to the fair have increased by an average of 35pc, while local and international exhibitors registered an increase of 24pc, according to Eshetu.

One of the fair’s most popular attractions was the Fuel Stick. Its claims to save more than 12pc of fuel consumption caught the eyes of many visitors. The fuel stick is made from a palm tree extract and has various sizes for different fuel tanks.

It is a fuel conditioner that improves engine combustion and fuel economy as well as increase power to save users money while they use less fuel, according to the promoter, Simon Asmare, general manager of AJ Simony Merchandise, the importer of the fuel stick.

“Although it is not yet available on the market, a product like the fuel stick would play a great role in minimising fuel consumption and reducing pollution,” claimed Simon. “This product can be used not only in petrol but also in kerosene and diesel tanks.”

Aside from efficient fuel consumption, the state of imported cars generated much discussion at the fair.

“More than 50pc of vehicles imported into the country are at least 10 years old, which has an enormous impact on pollution,” Getachew Mengiste, state minister for Transport and Communications (MoTC), said during the opening ceremony. “We must make every effort to reduce this to save time and resources.”

Eshetu was in agreement with Getachew

“In order to minimise unnecessary costs and environmental pollution, the government should re-evaluate the taxes and duties imposed on old and used imported vehicles to discourage their importation,” he said. “In the meantime, it should encourage investors who are interested to enter the assembling and semi manufacturing automobile industries. These kinds of incentives would play a positive part in saving foreign currency and preventing pollution.”

Daniel Mekonen, general manager of Hot Line Engineering Co, arrived at the trade fair early in the morning of the opening day in search of a pickup for his newly established company.

“In comparison with most other African countries, the price of vehicles in Ethiopia is very expensive,” he told Fortune. “In a country like Angola, where I lived for three years, you can buy car in good condition for 2,000 dollars, which is unthinkable here. Yet, I am happy to be able to buy a car assembled in our country.”

Lifan Motors also took the opportunity to announce its plans to assemble its Lifan SUV 1.8cc, a new sports utility vehicle, in two months along with the existing Lifan 520, 520 I, 320, 620 models and fusion minibus.

Lifan is on the way to change from assembling cars from a semi knocked down (SKD) to completely knocked down (CKD) stage, which would enable the company to manufacture more than 80pc of an automobile’s body in Ethiopia, according to Daniel Tamrat, promotion manager for Lifan.

“Although used and old imported cars are more expensive than our brand new automobiles, people still purchase old cars and are exposed to unnecessary expenses,” Daniel told Fortune.

Brokers play a significant role in misleading the public to control the car market, he claimed.

Yet, the public’s awareness is gradually changing to having faith in a product produced in their country

This was evidenced by those who, like Asefa Berhane 50, ordered the new locally assembled Geely Addis cars from Mesfin Industrial Engineering at the fair.

“Mesfin Industrial has been a player in the automobile sector for a long time and has a lot of experience, even with heavy-duty trucks,” he told Fortune. “I have full confidence that I will receive my car on the agreed day in good condition.”

Mesfin Industrial recently started assembling the new 1.3cc Geely automobile with Geely International, a Chinese company, in a joint venture (JV). It was named Geely Addis and cost 255,000 Br.

“The incorporation of an industrial engineering component with the fair would help us showcase our company’s main industrial service products,” said Yohanes Seyum, public relations officer at the company.

Approximately 80pc of the exhibitors were from the automobile sector with the remaining from the industrial engineering sector, according to the organisers.

Despite the growing demand for locally assembled automobiles, problems in the delivery of the ordered cars have created controversies between the company and its customers.

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