😅 the founder was a victim of western media portrayal of Africans. He never knew just how much luxury vehicles are in our market. He thought he would just build something rugged looking like it is made by Jua Kali, and people will pay millions for it. He also probably thought it's all always dirt roads everywhere. Classic example of following motivational speakers.
he knew what he was doing am sure he has been to kenya but he new those investors have the typical western media portrayal of Africans, and that is a better way to make some money 4 yourself based on their ignorance. just like the three fake ngo ripping donors off their money with fake stories this is the same a rip-off'
The View of Kenya when he was talking on TED, is just shocking, they think we don't have roads, like did this guy's even do research about the market they were just entering, it's really annoying, I think it's a lesson well learned for looking Down on Us
I am a mechanical engineer by profession. In 2019 I went to their offices for attachment they just said leave the papers and they'll call. I never received a call. Fast forward 2022 I applied for two mechanical related jobs they had advertised. I applied online and also dropped by papers. Never received a call. Nevertheless, their collapse is a wake up call to foreign investors and local startups. Actually their USP of rugged roads for African market was quite wrong. Business people rarely use rugged roads and rural people don't have 3M to buy a SUV to move around. Hope they'll be resurface.
The best business strategy they should follow was to create a small engine capacity vehicle that could compete with Toyota sienta as a matatu, with sales primarily focused on the matatu side that would have increased their brand recognition and reliability then introduce more offerings
If mobius 3 was their first car, they would have made it. The first 2 versions were too ugly and rugged for the Kenyan market. Lack of basic features was also a huge miss for them. This was a good watch and great lesson. The narration was straight to the point and easy to follow.
Never understood why the Kenyan government never endorsed Mobius vehicles for their operations, esp for police patrol. It could have empowered this company into an automobile giant
Anyone with access to 1.5 mn shillings in Kenya won't buy a car looking like that ,why do Westerners think that Africans are just utilitarian btw? We are also like them, when buying a car we don't just check the price but aesthetics and prestige are also heavy considerations too...
A Probox is a purely utilitarian purchase no? But their cars don't look like they're designed to be used as Matatus, maybe they should have started there?
Has anyone seen the administrative costs??? Salaries were higher than any sales made!! They should've bought land somewhere and not taken up an expensive place!!
Goverment should have assisted the startup by cutting the tax burden to allow the company to secure market share..such hostility is what ensures that African dreams remain far fetched.
Very well said. I interviewed with them for a design job when they were starting. I was asked what I would change. I said I would redo the car from scratch. I never got the job. They were not ready for reality. How do you design a car for african farmers with rear wheel drive, no ac, no power steering and with tent style roll up windows? Just because its Africa. By the time they realized the mistakes, they rebadged the chinese make to mobius. But it was too late. I am sure there are lessons learnt.
Doing business in Kenya is tough, our minds are colonized to think that imports are better. Why someone thinks that Japan needs any more of our money is a discussion for another day. I am customer of Mobius and I pray the dream doesn't die here and now
It's like you haven't really understood this video's message, if this guys really wanted to succeed, they would've built cars that can sell in the UK and other foreign markets, in short, it should compete with German and UK Vehicles in terms of Power, Luxury and Tech, Japanese vehicles in terms of reliability and pricing, but this guy started by assuming we don't have roads, wasting money on those first generation vehicles, That's what you get for looking down on Us, and not doing a thorough research about the market they are entering, Atakama nikua Patriotic to Buy Kenya Build Kenya, 4.5m Nabuy a good Mercedes, which is a status Symbol or any other German at that price na you cant tell me that Mobius is a good alternative
In any case, Kenya was just a physical location for Mobius. The investors were foreigners. Is that very different from buying from Toyota, a Japan-based company?
Yeah, the car market is difficult, worldwide. Cars are a very emotional purchase, not logical. It's not just about building good cars but also building cars people would like and that's hard. I also think its expensive to make cars, even Tesla had to wait YEARS before they broke even and even more years to make a profit.
Kenya is a different market. I wish they would focus on the commercial vehicles segment. Kenya's buy zero mileage vehicles for business. Luckly I though I heard they got an investor
I was at KVM in Thika for my mechanic course attachment/apprenticeship and saw these on an assembly line, they were the pickup 2WD version. I thought they were underpowered but rugged looking.
If I was the ceo I would significantly reduce expenses, produce a pickup variant and branch into the motorcycle market and monopolize the electric motorbikes but yes government contracts would have saved them
All this people under estimated African {Kenya}motor market, making a 60s lookalike cars, they would have made it if they started with the mobius three as the showcase. African motor market is the most competitive may be the world they dot look at the price tag, they look at the slicks.
The idea or what i call a business opportunity was there and is even there...., but the entrepreneur failed to understand the market or research the market comparatively with other similar markets Joel Jackson would have visited India, Pakistan, Balochi, Somalia, Afghanistan, and other remote locations with similar roads as our region diverse populations and culture. understand how they restore 50year old cars for rural utility applications and why? In India for example they use 2cylinder diesel farm tractors attach them to a tow trailer at the rear as a passenger deck for paltry 2000 dollars -- This is possible too here as all agricultural engines are not within taxable brackets then what would have earned the entrepreneur money is how refined the tow truck would have been. and place of manufacturing should have been on one remote area---proximate town Nanyuki a good bet for entire samburu and Northern hinter lands.....
Who exactly was the target market for this? At the price points mentioned, 1.9m- 4m , I don't think that market primarily operates in areas with majority rugged roads. Most Kenyan major towns have more decent roads unless it is upcountry.
I smell mischief on the founder, 90million in administrative cost and a revenue of just 16m or less for 13years running with a car that looks like was made from a scrap metals, a local mechanic and a welder can be given 100k each and they can build a better car than that, what we're those people paying themselves 90million to build what a scrap metal on wheels called mobius 1, this guy was basically ripping investors money through this blotted administrative rip -off cost, this was nothing but a rip off schema, orchestrated by one joel jackson.
Möbius might have been the only car company started in Africa... What local design should be celebrated? walking 500 miles by foot? Or what is the point your going for?
@@georges_c_brain the main issue is that the designer's focused on minimalism. The Toyota Pro box is a best seller in Africa,this because it's cheap dependable and versatile. A more viable option was to buy the tooling for a existing successful car and build a brand from it. As India,Iran and China did.
@@ericmunene8521I'm curious, tell me how, you seem to know what you speak and how to solve this clearly. If you made a youtube video about it I would likely watch it😅
@@richieroyale9210 Thanks alot for your positive review, but unfortunately I am too busy to make and edit a video and furthermore most of that information is already available open source .
@@richieroyale9210 on automobile manufacturing a country that wants to make a people's car, must consider the most important aspect of a successful car brand. Affordable, durable and versatile (multipurpose), on cost the paramount items are it's requirements for foreign parts(thus it's straining on foreign exchange reserves), water, labour and steel. Durability comes through quality of manufacturing, market research and after sales services. Tallying this and considering Kenya's available resources and quality of workforce the best option was buying tooling and licensing for either, pre 2012 probox,sienta, nissan wing road or a Suzuki Jimmy
For a new brand like mobius, a personal entrance is a bad idea. This can work if a comitted government is behind it. For example the government can write off its own tax. And make a demand all government vehicles be the said model.
@@krissk77 Excess greed eating our country up. There was attempts in 1970s to manufacture a local vehicle but people just abandoned the idea and focused more on dealing and sharing the nation's resources with themselves. By now the industry would have been very far
Mobius' initiative was quite idealistic. Their definition of "low price" was relative to foreign markets and not African markets and there isn't a "need" or desire for what they were producing. A rural business person is looking for a locally used vehicle costing about ksh 700k or thereabout, not 1.5 million+. Perhaps they would have been successful if they shifted their model to retrofitting imported vehicles with modifications that improved their functionality and durability on African roads. A lot of vehicles in rural areas have various mods to either increase ground clearance, make the suspension more rigid, or various fittings to protect the undercarriage or bumpers. If they changed their model and also considered urban vehicle owners who either have farms/shambas or frequently travel upcountry, then they may have penetrated the market. It's quite unfortunate but impressive that someone with little experience and understanding of the market had the networking capabilities and finesse to raise significant capital for a venture that wasn't feasible.
I have no problem with Chinese cars, but importing a Chinese car, rebranding it, selling it for twice as much as its worth, and telling everybody that you're an African Car Manufacturer because you put air in the tyres after shipping, is extremely dishonest. And then there's the new car market in Kenya... Because of punitive taxes, cars are two or three times more expensive here then elsewhere in the world, so new cars are only for the extremely rich, which is far less than 1% of the population. And, if you're extremely rich, you probably aren't going to buy a cheap Chinese knockoff. What they should have done is been honest from the start, show how they're adding value to the supply chain, and started importing electric vehicles and leading the drive to put infrastructure in place starting with Nairobi. Someone has to do this, and they were pretty well placed and might have pulled it off. Imagine what it'll be like the day everyone in Nairobi realises that this is the perfect city for electric bikes. Faster, cleaner, quieter, healthier. Mobius, will not be there. Shame.
African and Western consumers both want cost-efficient but high quality electric or hybrid cars. African and Western governments want a rugged car, but it still has to be better quality than the competition, which includes Toyota. Thumbs up for Mureza (Zim) though.
@@suleimansabuni8926 I am sorry to disagree but the mobius 3 is identical to the baic bj40( component to component except for the grill). Innoson from Nigeria also has bought the licence .
@@suleimansabuni8926 lie to fools, Mobius III is a rebadged Chinese BJ40. Go under the glove box to find the tags clearly written there. Nobody said it is bad or wrong to sell rebadged cars, this is just a confirmation of the fact. It is even sold in Nigeria and Ghana under different names, same cars.
Not really if you have paid for the licenses! Mobius is uniquely Kenyan, and the cars are not in anyway expensive compared to Japanese, UK and German cars
Sad.. The way I was looking for an opportunity of buying a Mobious! In kenya it all boils down to corruption and greed. Poleni saana...I hope you never give up..tey getting the public in your side, 99% of kenyans are honest down to earth harworking people. Get back upon that horse. Try it yet again.
And why was this Mobius branded as a “Kenyan car” when we all know there was absolutely nothing Kenyan about it! 😏 We should now focus on designing, building and testing a car that’s 100% conceived from scratch by Kenyans!
Mobius was an amazing innovative solution 😊, still is, the problem is African mentality and narrow vision,but also greed and impatience on the part of investors😅
Why did they have such high added taxes on their "locally made" cars. That is really what tipped their cars from reasonable to unreasonable. And you had to be nearly done with your order to get the full price after tax.
Saying that the were no willing buyers for the mobius is a lie. We prepaid for the Mobius 2 foot kes 50,000. We waited for our turn to buy the car for years. They never produced the car, nor did they refund or money. They had the worst communication or pr ever. They used a lot of investor funds, and still defrauded potential buyers like me 😢
When I looked the C-suite and the investors I knew it wasn't going to get any traction. First time I heard about them was 2014. 10 years later and they are bankrupt.
"Africans" especially Kenyans, prefer the more "prestigious" looking Japanese made cars and trucks. It's just the way. I'm not driving down the street in a "brokemobile" and getting laughed at while doing it. 😂 I saw one upclose as an assembly line intern at KVM and boy those things are ugly.
At the end of the day people still buy Range Rovers coz of years of branding proper marketing they should have spent more on advertising coz people were not aware of their product
...if they had been patriotic elements in government with a vision of an industrialized country. In fact they should have placed the biggest order of vehicles as official government vehicles (From President, DP, Party officials, Governors, County staff, CS's, Police officer, PC, DC, DO...all arms of the Military. Imagine what this could have done to the local economy?
The strategy was wrong right from the start. You can't penetrate a market with a low spending power using a car built for a luxury safari ride. Why did they choose the design or military cars for civilian markets. Product design...zero marls. And where were their sales & marketing teams? No one ever mentioned this car in Uganda
They first needed to build an actually good-looking car. Not that ridiculous thing they were making and charging very high price for such a thing. Not even the government would want it.
Why don’t governments take over such initiatives and make them a success. The idea is brilliant and the mistake was to think it’s market was going to be Kenya but I don’t think so,they would actually be exporting to Southern Africa .the cost of buying vehicles in Africa is so high all the start up needed was a little more patient which a government would give for its stability.
Not one comment by someone who has actually driven one 🤔 Something missing in the photos of the ted presentation, the guy himself. That could have been compiled by a high school student overnight. Did the shareholders watch "the gods must be crazy" before every meeting? What were they thinking producing a windowless car with a '70's grill?
I am surprised you made no mention of the lack of govt support. Even Tesla got help in the form of buyer subsidies. The Kenyan govt could have bought some. Once proven EAC govts could have followed
Question: Did the government of Kenya recognise the potential of Mobius Motors to employ millions of the young and energetic Kenyans let alone the rest of east Africans going forward? Had that been the case the government would have embraced the company, by working hand in hand with the management to make sure that it does not fail. I don't think that it was for the lack of "investment" that it "failed," but rather the failure to be embraced and nurtured by the state. It is a huge loss for Kenya.
perhaps Mobius had former president Kenyatta and their rich family as shareholders and knowing very well how they are enemies with the current president Ruto I guess they just couldnt survive in his reign due to hurdles put in place for businesses to survive
They had a great idea with MOBIUS 1 where they made a simple unpretentious vehicle fully made in Kenya...Then they decided to stop making anything and simply sell REBRANDED POOR QUALITY CHINESE MADE SUVS and still keep the tag "made in Kenya." :( If you want a car that will sell units in Kenya you need to SIMPLIFY. Make a simple basic off-road capable vehicle with no features like aircon etc. Something that can be serviced by jua kali and that cost not much more than a bodaboda....that is not more rhan 500K. That way you will sell volumes and you can call yourself a car assembly or car manufacturer.
@@dylanmingi5064 I see that is the point you are trying hard to push. For your own satisfaction. But for the sake of the conversation, mind sharing where you get your bogus statistics from? And how much did you think new vehicles cost? In Kenya shillings.
Because their media is always showing them only the rural folk trekking in the hot sun on dirt roads, or with an old car that always breaks down. They thought that was everybody. So they would just come to build a car that looks like Jua Kali and ask for millions.
Saw one at Eldoret and it was elegant, but the pricetag hit me like a thunderbolt and I quickly ran away with my tail between my legs....KSH 4 million is not " low cost"
Seems like that business was bounded to fail from day one, having a business model to sell cars to a low income households in a cash economy in Africa was never going to work without first building public vehicles like mini buses and buses to build a market presence
They shouldn't have concentrated on SUV market because the options are many they should have looked into the saloon car market and manufacture affordable saloons at a price range of 700-900K 0 mileage
What did they expect with such a poor design language? If you want to beat the leaders, you must present something far better than what they have. Mobius 3 came it at a price higher than was expected. Because it was not locally made; it was locally assembled and rebadged from a Chinese manufacturer, so it seemed. Kenyans read that as not being what they were looking for. A price point of 2.5m - 3.5m SUV would have been a better region to aim at.
they should have moved with the times,especially in the small car section for affordablity and convinient mobility,the focus was there but the adaptation was poor
The View of Kenya when he was talking on TED, is just shocking, they think we don't have roads, like did this guy's even do research about the market they were just entering, it's really annoying, I think it's a lesson well learned for looking Down on Us if this guys really wanted to succeed, they would've built cars that can sell in the UK and other foreign markets, in short, it should compete with German and UK Vehicles in terms of Power, Luxury and Tech, Japanese vehicles in terms of reliability and pricing, but this guy started by assuming we don't have roads, wasting money on those first generation vehicles, That's what you get for looking down on Us, and not doing a thorough research about the market they are entering, Atakama nikua Patriotic to Buy Kenya Build Kenya, 4.5m Nabuy a good Mercedes, which is a status Symbol or any other German at that price na you can't tell me that Mobius is a good alternative, Infact They would have started with Electric Vehicles being a New Company
Imagine our government killed the industry by taxing them instead they could have given them allowance so that we can create our own and boost our economic
The yngor no support from local corporates and government, our politicians were busy buying substandard chinese cars and established brands for incredibly inflated costs for the purposes of pocketing kickbacks, thas company foling was really sad, the right idea at the wrong time
Corporate tax I suppose. Again, considering this was a subsidiary to Mobius Motors UK...they had to pay hefty withholding tax for outsourcing services.
Sadly, it was Dead on Arrival - Was there really a demand for such a car in the MIND of the Kenyan market? 22 Immutable Laws of Marketing - Law No.4 : The Law of Perception
This is what happens when a Mzungu thinks he knows more about Afrika than the Africans. This was not a Kenyan homegrown car, but just another European business in Africa. Plus they were wasting time re-inventing the wheel. There is already the car they were looking for. It is the LandRover 109. They should have simply copied the 109, make it a bit fancy to go with the times, and there you have a business.
These African nations need to be even more patient than other developed nations when it comes to backing mega corperations in their infancy. Even in the most developed nations these industries are investment intensive not just in money but talent and in Africa both of these things may even be harder to obtain and maintain... I remember watching videos on the African car manufactures half a decade ago (this was one of the companies) and their electric vehicles had a dozen(+) car batteries used for gas vehicles to power them.... It let me know these companies were way behind the curve..... But I'm sure it had came far since then and government officials should have doubled down because these companies are a direct reflection of Africa's struggle. Would you drop an African citizen in the same situation??? I'd hope not, and these companies should be helped to succeed if they are doing everything they can do to succeed.
The elephant in the room is corruption. the cars should have ben cheaper than the secondhand vehicles we import here and their salaries would have stated lower. in their case, salaries for workers contributed to hiring by merit of 'connection'- (wewe unajua nani?) ama ( i know someone cheaper). other than hiring by merit of expertise/professionals ( we have so many good mechanical engineers with out job who would have started with lower pay) by so doing this brought about low quality high expenditure with also meant expensive cars. and to say they paid themselves that salary for 13 years with investors money is absurd! . come to think of it its the same thing happening in every gorv sector, uchumi, police, army, gorv offices, parliament, cs, sports, education, mining, farming, etc. This was doomed to fail from the start!
It didn't exactly feel like "our own cars". We were hearing about it, would have been good. But the company had everything wrong. The earlier versions looked ridiculously bad and the price is just as ridiculous. Like a tin car you build for yourself in a Jua Kali and try to sell it for 1.5Million. They did change the design, but the price went above the known brands that are even better quality.
Marketing strategy was poor am sure if they got a 10 year tax excemption on local parts and a contract from government ministries for supply and maintenance
😅 the founder was a victim of western media portrayal of Africans. He never knew just how much luxury vehicles are in our market.
He thought he would just build something rugged looking like it is made by Jua Kali, and people will pay millions for it. He also probably thought it's all always dirt roads everywhere.
Classic example of following motivational speakers.
How can I like this post twice or more 😅
he knew what he was doing am sure he has been to kenya but he new those investors have the typical western media portrayal of Africans, and that is a better way to make some money 4 yourself based on their ignorance. just like the three fake ngo ripping donors off their money with fake stories this is the same a rip-off'
@@simonkimani7062 😅
The View of Kenya when he was talking on TED, is just shocking, they think we don't have roads, like did this guy's even do research about the market they were just entering, it's really annoying, I think it's a lesson well learned for looking Down on Us
As he was talking on that TED talk snippet, I kept on thinking, a pick up does that already. Boda 👀. Like the roads can & are being made...🤷🏾♂
For such a company to succeed, they should have worked to get government contracts.
and major institutions as boards shareholder
@@lusarshameli7057 politicians wouldn’t even accept to be driven in those.
The Kenya Government is a cartel. This is not their cup of tea.
or better the government should have been the lead investor. But 4million smells of the usual corruption.
@@boxoffisawhy not? They seem good
I am a mechanical engineer by profession. In 2019 I went to their offices for attachment they just said leave the papers and they'll call. I never received a call. Fast forward 2022 I applied for two mechanical related jobs they had advertised. I applied online and also dropped by papers. Never received a call.
Nevertheless, their collapse is a wake up call to foreign investors and local startups. Actually their USP of rugged roads for African market was quite wrong. Business people rarely use rugged roads and rural people don't have 3M to buy a SUV to move around. Hope they'll be resurface.
The best business strategy they should follow was to create a small engine capacity vehicle that could compete with Toyota sienta as a matatu, with sales primarily focused on the matatu side that would have increased their brand recognition and reliability then introduce more offerings
@theendnetwork Pin this comment
If mobius 3 was their first car, they would have made it. The first 2 versions were too ugly and rugged for the Kenyan market. Lack of basic features was also a huge miss for them.
This was a good watch and great lesson. The narration was straight to the point and easy to follow.
Never understood why the Kenyan government never endorsed Mobius vehicles for their operations, esp for police patrol. It could have empowered this company into an automobile giant
Anyone with access to 1.5 mn shillings in Kenya won't buy a car looking like that ,why do Westerners think that Africans are just utilitarian btw? We are also like them, when buying a car we don't just check the price but aesthetics and prestige are also heavy considerations too...
Our roads
A Probox is a purely utilitarian purchase no? But their cars don't look like they're designed to be used as Matatus, maybe they should have started there?
Has anyone seen the administrative costs??? Salaries were higher than any sales made!! They should've bought land somewhere and not taken up an expensive place!!
That will do it…all the time
That administrative cost though,
Goverment should have assisted the startup by cutting the tax burden to allow the company to secure market share..such hostility is what ensures that African dreams remain far fetched.
African dream? Did you not hear the list of shareholders?
They never understood Africa. The car was not affordable. They thought that ruggedness was a thing... It was not.
I think the young white dude just wanted to fleece old wealthy white people from back home.
Very well said. I interviewed with them for a design job when they were starting. I was asked what I would change. I said I would redo the car from scratch. I never got the job. They were not ready for reality. How do you design a car for african farmers with rear wheel drive, no ac, no power steering and with tent style roll up windows? Just because its Africa. By the time they realized the mistakes, they rebadged the chinese make to mobius. But it was too late. I am sure there are lessons learnt.
Doing business in Kenya is tough, our minds are colonized to think that imports are better. Why someone thinks that Japan needs any more of our money is a discussion for another day. I am customer of Mobius and I pray the dream doesn't die here and now
😂😂😂. Pathetic
It's like you haven't really understood this video's message, if this guys really wanted to succeed, they would've built cars that can sell in the UK and other foreign markets, in short, it should compete with German and UK Vehicles in terms of Power, Luxury and Tech, Japanese vehicles in terms of reliability and pricing, but this guy started by assuming we don't have roads, wasting money on those first generation vehicles, That's what you get for looking down on Us, and not doing a thorough research about the market they are entering, Atakama nikua Patriotic to Buy Kenya Build Kenya, 4.5m Nabuy a good Mercedes, which is a status Symbol or any other German at that price na you cant tell me that Mobius is a good alternative
you realize they were selling imported knock down kits from china?
In any case, Kenya was just a physical location for Mobius. The investors were foreigners. Is that very different from buying from Toyota, a Japan-based company?
Yeah, the car market is difficult, worldwide. Cars are a very emotional purchase, not logical. It's not just about building good cars but also building cars people would like and that's hard. I also think its expensive to make cars, even Tesla had to wait YEARS before they broke even and even more years to make a profit.
A cautionary tale with valuable lessons for Kenyan and African entrepreneurs!
Kenya is a different market. I wish they would focus on the commercial vehicles segment. Kenya's buy zero mileage vehicles for business. Luckly I though I heard they got an investor
An investor again after they dissolved?
@@patriot_2022 a sympathy investors maybe, mobius was not only a car but a symbol of hope people still don't want to leave it
That's sad to know it crumbled...Given that I was vouching for the Mobius win of Domestic and international consumer hearts.
And I still spot their cars once in va while on the roads
I was at KVM in Thika for my mechanic course attachment/apprenticeship and saw these on an assembly line, they were the pickup 2WD version. I thought they were underpowered but rugged looking.
Given that revenue, how on earth did they owe 85 million in tax?
Kenyan government is designed to kill Kenya. They work for multinationals not Kenyans.
When your are coming up against a giant like Toyota's reliability.... that was a big joke....
If I was the ceo I would significantly reduce expenses, produce a pickup variant and branch into the motorcycle market and monopolize the electric motorbikes but yes government contracts would have saved them
I just saw one today. I wanted to buy one.
Awesome content!
Appreciate it!
All this people under estimated African {Kenya}motor market, making a 60s lookalike cars, they would have made it if they started with the mobius three as the showcase. African motor market is the most competitive may be the world they dot look at the price tag, they look at the slicks.
The idea or what i call a business opportunity was there and is even there...., but the entrepreneur failed to understand the market or research the market comparatively with other similar markets Joel Jackson would have visited India, Pakistan, Balochi, Somalia, Afghanistan, and other remote locations with similar roads as our region diverse populations and culture. understand how they restore 50year old cars for rural utility applications and why?
In India for example they use 2cylinder diesel farm tractors attach them to a tow trailer at the rear as a passenger deck for paltry 2000 dollars -- This is possible too here as all agricultural engines are not within taxable brackets then what would have earned the entrepreneur money is how refined the tow truck would have been. and place of manufacturing should have been on one remote area---proximate town Nanyuki a good bet for entire samburu and Northern hinter lands.....
Who exactly was the target market for this? At the price points mentioned, 1.9m- 4m , I don't think that market primarily operates in areas with majority rugged roads. Most Kenyan major towns have more decent roads unless it is upcountry.
Exactly, this guys talk on TED and show images and videos of Maasai , thinking that's the majority of Kenya, It's quite annoying
I smell mischief on the founder, 90million in administrative cost and a revenue of just 16m or less for 13years running with a car that looks like was made from a scrap metals, a local mechanic and a welder can be given 100k each and they can build a better car than that, what we're those people paying themselves 90million to build what a scrap metal on wheels called mobius 1, this guy was basically ripping investors money through this blotted administrative rip -off cost, this was nothing but a rip off schema, orchestrated by one joel jackson.
He has been fought by bigger companies.
Free markets does not exist, it's about hierarchies.
It's also best for carmakers to sell in the USA and China, those are some of the biggest car markets, not Africa, most of the cars here are used.
Nice documentary, thanks for time you put into it
the mobius 3 would have taken off if not for the high prices it was promising,but at 4mil kes i would rather buy a cheaper suv like an Awd CX5
This can be summed up in the documentary "why western designs fail in 3rd world"
Möbius might have been the only car company started in Africa... What local design should be celebrated? walking 500 miles by foot? Or what is the point your going for?
@@georges_c_brain the main issue is that the designer's focused on minimalism. The Toyota Pro box is a best seller in Africa,this because it's cheap dependable and versatile. A more viable option was to buy the tooling for a existing successful car and build a brand from it. As India,Iran and China did.
@@ericmunene8521I'm curious, tell me how, you seem to know what you speak and how to solve this clearly. If you made a youtube video about it I would likely watch it😅
@@richieroyale9210 Thanks alot for your positive review, but unfortunately I am too busy to make and edit a video and furthermore most of that information is already available open source .
@@richieroyale9210 on automobile manufacturing a country that wants to make a people's car, must consider the most important aspect of a successful car brand. Affordable, durable and versatile (multipurpose), on cost the paramount items are it's requirements for foreign parts(thus it's straining on foreign exchange reserves), water, labour and steel. Durability comes through quality of manufacturing, market research and after sales services. Tallying this and considering Kenya's available resources and quality of workforce the best option was buying tooling and licensing for either, pre 2012 probox,sienta, nissan wing road or a Suzuki Jimmy
For a new brand like mobius, a personal entrance is a bad idea. This can work if a comitted government is behind it.
For example the government can write off its own tax. And make a demand all government vehicles be the said model.
The greed in government can't let it happen....the local greed is up there. Corruption tops
@@krissk77 Excess greed eating our country up. There was attempts in 1970s to manufacture a local vehicle but people just abandoned the idea and focused more on dealing and sharing the nation's resources with themselves.
By now the industry would have been very far
Mobius' initiative was quite idealistic. Their definition of "low price" was relative to foreign markets and not African markets and there isn't a "need" or desire for what they were producing. A rural business person is looking for a locally used vehicle costing about ksh 700k or thereabout, not 1.5 million+.
Perhaps they would have been successful if they shifted their model to retrofitting imported vehicles with modifications that improved their functionality and durability on African roads. A lot of vehicles in rural areas have various mods to either increase ground clearance, make the suspension more rigid, or various fittings to protect the undercarriage or bumpers.
If they changed their model and also considered urban vehicle owners who either have farms/shambas or frequently travel upcountry, then they may have penetrated the market.
It's quite unfortunate but impressive that someone with little experience and understanding of the market had the networking capabilities and finesse to raise significant capital for a venture that wasn't feasible.
I have no problem with Chinese cars, but importing a Chinese car, rebranding it, selling it for twice as much as its worth, and telling everybody that you're an African Car Manufacturer because you put air in the tyres after shipping, is extremely dishonest. And then there's the new car market in Kenya... Because of punitive taxes, cars are two or three times more expensive here then elsewhere in the world, so new cars are only for the extremely rich, which is far less than 1% of the population. And, if you're extremely rich, you probably aren't going to buy a cheap Chinese knockoff.
What they should have done is been honest from the start, show how they're adding value to the supply chain, and started importing electric vehicles and leading the drive to put infrastructure in place starting with Nairobi. Someone has to do this, and they were pretty well placed and might have pulled it off.
Imagine what it'll be like the day everyone in Nairobi realises that this is the perfect city for electric bikes. Faster, cleaner, quieter, healthier. Mobius, will not be there. Shame.
A 4 million car isn't a car made for the middle class or the poor😅
Solving a problem that isn't there.
African and Western consumers both want cost-efficient but high quality electric or hybrid cars. African and Western governments want a rugged car, but it still has to be better quality than the competition, which includes Toyota. Thumbs up for Mureza (Zim) though.
Governent of kenya is the one who should have buy their cars.Why you buying mahindra,
landcruiser& you have a local company
It used to sell rebadged Chinese cars.
dude,i work there, thez no chinese cars badged man! Pricing was our problem
@@suleimansabuni8926 I am sorry to disagree but the mobius 3 is identical to the baic bj40( component to component except for the grill). Innoson from Nigeria also has bought the licence .
@@ericmunene8521true
@@suleimansabuni8926 lie to fools, Mobius III is a rebadged Chinese BJ40. Go under the glove box to find the tags clearly written there. Nobody said it is bad or wrong to sell rebadged cars, this is just a confirmation of the fact. It is even sold in Nigeria and Ghana under different names, same cars.
Not really if you have paid for the licenses! Mobius is uniquely Kenyan, and the cars are not in anyway expensive compared to Japanese, UK and German cars
Gosh who would've thought reselling Chinese cars in a country with a non-existent new car market was a bad idea?
Sad..
The way I was looking for an opportunity of buying a Mobious!
In kenya it all boils down to corruption and greed.
Poleni saana...I hope you never give up..tey getting the public in your side, 99% of kenyans are honest down to earth harworking people.
Get back upon that horse.
Try it yet again.
It's just about the price.
And why was this Mobius branded as a “Kenyan car” when we all know there was absolutely nothing Kenyan about it! 😏
We should now focus on designing, building and testing a car that’s 100% conceived from scratch by Kenyans!
I am also wondering the same, the car is Chinese!
Mobius was an amazing innovative solution 😊, still is, the problem is African mentality and narrow vision,but also greed and impatience on the part of investors😅
Why did they have such high added taxes on their "locally made" cars. That is really what tipped their cars from reasonable to unreasonable. And you had to be nearly done with your order to get the full price after tax.
Nikiwa na 4m....nanunua Prado
4 million yet you Said is for low income earners is joke 🤣 yet you can buy used car 🚗 for 800k lowest
That was the work of the new CEO ans not the original founder
@@Rassy_ A new CEO who was supposed to know more and have better experience. He literally just signed it off.
@patriot_2022 true. Most CEOs that have succeeded from the original/founder CEOs from car companies ruined their brands from GM to Ford...
2 maybes:
1. Go electric for Mobius 2 onwards
2. Government contracts
Saying that the were no willing buyers for the mobius is a lie. We prepaid for the Mobius 2 foot kes 50,000. We waited for our turn to buy the car for years. They never produced the car, nor did they refund or money. They had the worst communication or pr ever. They used a lot of investor funds, and still defrauded potential buyers like me 😢
When I looked the C-suite and the investors I knew it wasn't going to get any traction. First time I heard about them was 2014. 10 years later and they are bankrupt.
No point reinventing the wheel. 8yr old Japanese imports are cheap (even with tax) and reliable. Just service that industry.
People think Tesla is a car maker but if you look closer, other products made by the company sell more than the cars.
nice, kenyan youtubers are starting to make video essays
The government should coming in and save this name
"Africans" especially Kenyans, prefer the more "prestigious" looking Japanese made cars and trucks. It's just the way. I'm not driving down the street in a "brokemobile" and getting laughed at while doing it. 😂 I saw one upclose as an assembly line intern at KVM and boy those things are ugly.
😅🤣😂😂
At the end of the day people still buy Range Rovers coz of years of branding proper marketing they should have spent more on advertising coz people were not aware of their product
Did KRA tax losses? This was a grand vision that was let to die. Would the story be different if...?
...if they had been patriotic elements in government with a vision of an industrialized country. In fact they should have placed the biggest order of vehicles as official government vehicles (From President, DP, Party officials, Governors, County staff, CS's, Police officer, PC, DC, DO...all arms of the Military. Imagine what this could have done to the local economy?
Government was buying Mahindra leasing Toyota. Even software we are lmporting for local solutions.
The strategy was wrong right from the start. You can't penetrate a market with a low spending power using a car built for a luxury safari ride. Why did they choose the design or military cars for civilian markets. Product design...zero marls. And where were their sales & marketing teams? No one ever mentioned this car in Uganda
They started to fail the moment they chose the brand name, Mobius. Who wants to drive a car with such a morbid name
One of the problems of NGOs and non profit NGOs in Kenya is corrupt govt officials. They dive too deep in the funding and cripple the organisations.
I never saw a future for the company. Rural Kenyans prefer motorcycles.
Gvt must have owned 30% of shares and become the first customer.
They first needed to build an actually good-looking car. Not that ridiculous thing they were making and charging very high price for such a thing. Not even the government would want it.
@@patriot_2022 Very true this guy had no intention of selling cars he had other ideas
Why don’t governments take over such initiatives and make them a success. The idea is brilliant and the mistake was to think it’s market was going to be Kenya but I don’t think so,they would actually be exporting to Southern Africa .the cost of buying vehicles in Africa is so high all the start up needed was a little more patient which a government would give for its stability.
Not one comment by someone who has actually driven one 🤔
Something missing in the photos of the ted presentation, the guy himself. That could have been compiled by a high school student overnight.
Did the shareholders watch "the gods must be crazy" before every meeting? What were they thinking producing a windowless car with a '70's grill?
I am surprised you made no mention of the lack of govt support. Even Tesla got help in the form of buyer subsidies. The Kenyan govt could have bought some. Once proven EAC govts could have followed
You are right, it is like this in our country where entrepreneurs stand alone with absolutely no support from the government 😭
Question: Did the government of Kenya recognise the potential of Mobius Motors to employ millions of the young and energetic Kenyans let alone the rest of east Africans going forward? Had that been the case the government would have embraced the company, by working hand in hand with the management to make sure that it does not fail. I don't think that it was for the lack of "investment" that it "failed," but rather the failure to be embraced and nurtured by the state. It is a huge loss for Kenya.
perhaps Mobius had former president Kenyatta and their rich family as shareholders and knowing very well how they are enemies with the current president Ruto I guess they just couldnt survive in his reign due to hurdles put in place for businesses to survive
The salaries were way high... Objectives didn't align.. they achieved enriching themselves
They had a great idea with MOBIUS 1 where they made a simple unpretentious vehicle fully made in Kenya...Then they decided to stop making anything and simply sell REBRANDED POOR QUALITY CHINESE MADE SUVS and still keep the tag "made in Kenya." :(
If you want a car that will sell units in Kenya you need to SIMPLIFY.
Make a simple basic off-road capable vehicle with no features like aircon etc.
Something that can be serviced by jua kali and that cost not much more than a bodaboda....that is not more rhan 500K.
That way you will sell volumes and you can call yourself a car assembly or car manufacturer.
😂😂 actually the rebranded Chinese suv was there best and most popular
I mean, its still working
It was supposed to be a pick -up truck
Overpriced, design and quality not same as used Japanese cars. Well, who knew this would happen?
I can't really blame them because Kenya has no experience in making its own cars
@@NJUREMUNDIA that’s it. However right now us Africans have no better way to make and sell cars on our own land. The global competition is tough.
@@NJUREMUNDIA uganda seem to be making some solar cars. i think the big culptit is corruption
Kenya is a low income economy . With 95% of vehicles sold being second hand.
They had hope
I thought we were middle income economy. 😂😂😂😂😂
Middle income bro. This isn't 2010
@@patriot_2022 Call it what you want to call it but the fact still remains that 95% Kenyans can't afford new vehicles.
@@dylanmingi5064 I see that is the point you are trying hard to push. For your own satisfaction.
But for the sake of the conversation, mind sharing where you get your bogus statistics from?
And how much did you think new vehicles cost? In Kenya shillings.
They underrated Africans that we cannot afford luxury SUV .....
Because their media is always showing them only the rural folk trekking in the hot sun on dirt roads, or with an old car that always breaks down.
They thought that was everybody. So they would just come to build a car that looks like Jua Kali and ask for millions.
They thought there was no good cars here.
Companies grow and Fail it normal in Business world. causes are policy or just economy.
Saw one at Eldoret and it was elegant, but the pricetag hit me like a thunderbolt and I quickly ran away with my tail between my legs....KSH 4 million is not " low cost"
They should have also worked with local car dealers instead of setting shop only in some fancy expensive office spaces.
that does not add up
Seems like that business was bounded to fail from day one, having a business model to sell cars to a low income households in a cash economy in Africa was never going to work without first building public vehicles like mini buses and buses to build a market presence
They shouldn't have concentrated on SUV market because the options are many they should have looked into the saloon car market and manufacture affordable saloons at a price range of 700-900K 0 mileage
What did they expect with such a poor design language? If you want to beat the leaders, you must present something far better than what they have. Mobius 3 came it at a price higher than was expected. Because it was not locally made; it was locally assembled and rebadged from a Chinese manufacturer, so it seemed. Kenyans read that as not being what they were looking for. A price point of 2.5m - 3.5m SUV would have been a better region to aim at.
they should have moved with the times,especially in the small car section for affordablity and convinient mobility,the focus was there but the adaptation was poor
funny. Mobius' dream of an African-made car ended after they rebadged a BAIC BJ50 (a Chinese car) and sold it as the Mobius 3. Karma at her finest
The View of Kenya when he was talking on TED, is just shocking, they think we don't have roads, like did this guy's even do research about the market they were just entering, it's really annoying, I think it's a lesson well learned for looking Down on Us if this guys really wanted to succeed, they would've built cars that can sell in the UK and other foreign markets, in short, it should compete with German and UK Vehicles in terms of Power, Luxury and Tech, Japanese vehicles in terms of reliability and pricing, but this guy started by assuming we don't have roads, wasting money on those first generation vehicles, That's what you get for looking down on Us, and not doing a thorough research about the market they are entering, Atakama nikua Patriotic to Buy Kenya Build Kenya, 4.5m Nabuy a good Mercedes, which is a status Symbol or any other German at that price na you can't tell me that Mobius is a good alternative, Infact They would have started with Electric Vehicles being a New Company
Imagine our government killed the industry by taxing them instead they could have given them allowance so that we can create our own and boost our economic
They should have changed the name of the company to something more catchy. Mobius sounds like... morbid 😮😂😢😅
Kenyans believe that if it’s made in Kenya, then it’s not good.
The yngor no support from local corporates and government, our politicians were busy buying substandard chinese cars and established brands for incredibly inflated costs for the purposes of pocketing kickbacks, thas company foling was really sad, the right idea at the wrong time
How on earth can you be making such losses... and yet still have a tax bill.. something doesn't add up
That's what I suspect something is fishy here.
Exactly.
Corporate tax I suppose. Again, considering this was a subsidiary to Mobius Motors UK...they had to pay hefty withholding tax for outsourcing services.
Use one currency either u use USD only or Shilling only.
Mobious shouldvhave engaged the governments national government and county governments..
Marketing is still wanting.
The design looks stupidly ridiculous
Then its price makes it even more ridiculous
Sadly, it was Dead on Arrival - Was there really a demand for such a car in the MIND of the Kenyan market? 22 Immutable Laws of Marketing - Law No.4 : The Law of Perception
This is what happens when a Mzungu thinks he knows more about Afrika than the Africans.
This was not a Kenyan homegrown car, but just another European business in Africa.
Plus they were wasting time re-inventing the wheel. There is already the car they were looking for. It is the LandRover 109. They should have simply copied the 109, make it a bit fancy to go with the times, and there you have a business.
It all boils down to one thing people. MARKETING!!!!! They sucked at it.
These African nations need to be even more patient than other developed nations when it comes to backing mega corperations in their infancy. Even in the most developed nations these industries are investment intensive not just in money but talent and in Africa both of these things may even be harder to obtain and maintain...
I remember watching videos on the African car manufactures half a decade ago (this was one of the companies) and their electric vehicles had a dozen(+) car batteries used for gas vehicles to power them.... It let me know these companies were way behind the curve..... But I'm sure it had came far since then and government officials should have doubled down because these companies are a direct reflection of Africa's struggle. Would you drop an African citizen in the same situation??? I'd hope not, and these companies should be helped to succeed if they are doing everything they can do to succeed.
The elephant in the room is corruption. the cars should have ben cheaper than the secondhand vehicles we import here and their salaries would have stated lower. in their case, salaries for workers contributed to hiring by merit of 'connection'- (wewe unajua nani?) ama ( i know someone cheaper). other than hiring by merit of expertise/professionals ( we have so many good mechanical engineers with out job who would have started with lower pay) by so doing this brought about low quality high expenditure with also meant expensive cars. and to say they paid themselves that salary for 13 years with investors money is absurd! . come to think of it its the same thing happening in every gorv sector, uchumi, police, army, gorv offices, parliament, cs, sports, education, mining, farming, etc. This was doomed to fail from the start!
Investing in kenya is a dead man's gambit.
Quite unfortunate!
If kenyans cant buy they own cars who would
It didn't exactly feel like "our own cars". We were hearing about it, would have been good. But the company had everything wrong.
The earlier versions looked ridiculously bad and the price is just as ridiculous.
Like a tin car you build for yourself in a Jua Kali and try to sell it for 1.5Million.
They did change the design, but the price went above the known brands that are even better quality.
@@patriot_2022 True
Marketing strategy was poor am sure if they got a 10 year tax excemption on local parts and a contract from government ministries for supply and maintenance