Zimbabwe and India Automaker Seal Major Car Assembly Agreement

Zimbabwe has put an end to a historic locally-assembled vehicle agreement with leading Indian commercial vehicle manufacturer Ashok Leyland, a move that signals a massive upturn in the country’s automotive industrialization process.

The undertaking was officially sealed by a high-level Zimbabwean delegation headed by Vice-President Dr. Constantino Chiwenga, who signed the documents at the prestigious India Africa Business Conclave in New Delhi. Willowvale Motor Industries in Harare is to partner with Ashok Leyland as part of this cooperation, with the production expected to be launched in January next year.

This landmark follows up on the conversations that began in 2021, got renewed last year, and are now wrapping up with a complete assembly agreement. The project is anticipated to generate a large number of jobs, give a boost to local manufacturing capacity, and propel Zimbabwe’s march towards industrial self-reliance.

Deputy President Chiwenga referred to the contract as a “landmark accomplishment” and added that “it is a clear reflection of deepening economic cooperation between Zimbabwe and India.” “This is one of several cases where such partnerships are transformed into value chains that generate more jobs and more growth,” he said while pointing out that the government is still in search of partners who can assist in unlocking the investment potential in Zimbabwe to not only make beneficiation an industrial process.

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Moreover, the automotive breakthrough, among other things, brought Indian investors to commit support to a US$170 million integrated sugar complex project led by Platinum Crest Agro Ventures, a venture that is viewed as the turning point of Zimbabwe’s sugarmill industry, Dr. Chiwenga also had a meeting with Chairman of Jindal Group, Naveen Jindal, where they discussed the issue of energy cooperatively, including the Hwange Thermal Power Station refurbishment that is destined to add 800MW of power to the national grid.