Kenya-based automaker Mobius Motors has announced its voluntary liquidation after nearly a year of unsuccessful attempts to save the company. Facing mounting debts, including unpaid supplier bills and employee salaries, the company could not sustain its operations.In a shareholder meeting held on August 5, 2024, the board resolved to liquidate the company under Section 393(1)(b) of Kenya’s Insolvency Act, appointing KVSK Sastry as the liquidator. This provision allows companies to voluntarily wind up based on board approval.Mobius Motors had raised $56 million across five funding rounds. Its mission was to manufacture affordable SUVs designed for small businesses in sectors like agribusiness and infrastructure, particularly those operating in remote areas where rugged vehicles are essential.
A Bold Vision, But Limited Market Traction
Mobius was founded in 2009 by Joel Jackson, a British entrepreneur inspired to create vehicles tailored for African roads. The company’s debut SUV in 2014 was a stripped-down model priced at $10,000 (KES 1.3 million)—significantly lower than standard SUVs available in the Kenyan market.Initially producing 50 units of its first model, the company introduced successors—the Mobius II in 2018 and the Mobius III in 2021. Despite its innovative concept, Mobius struggled to compete in a market dominated by affordable second-hand imports from countries like Japan and the UK.The company’s business model relied heavily on pre-orders, with customers required to place refundable deposits of $384 (KES 50,000). This dependency indicated lukewarm demand for its vehicles, as it failed to secure a significant market share.
Backing from Major Investors
In 2015, Mobius began mass production after receiving financial support from several notable investors, including UK-based Playfair Capital, Chandaria Industries in Kenya, the US Development Finance Corporation (DFC), and PanAfrican Investment. Despite this backing, the company could not sustain its operations or scale production effectively.
A Pioneering Effort Comes to an End
Mobius’ vision of creating affordable, durable vehicles tailored to Africa’s unique challenges resonated with many, but execution and market dynamics proved insurmountable. Its story highlights the challenges of competing with established players in an import-heavy market and the difficulty of building a sustainable automotive manufacturing business in the region.With liquidation proceedings underway, Mobius Motors leaves behind a legacy as a bold, albeit short-lived, attempt to reshape Africa’s automotive industry.
