by Business Reporter
Quest Motor Corporation (QMC) is ready to assemble and supply the Yutong and Zhongtong buses for the local market in a bid to support Government efforts of resuscitating public mass transport system.
A contact within QMC told this publication that the company signed a memorandum of agreement with the Chinese and world’s biggest bus manufacturers Yutong and Zhongtong in 2014. The agreement was for QMC to assemble and supply Yutong and Zhongtong buses in Zimbabwe.
“In 2014, QMC entered into an agreement with Yutong and Zhongtong so that it can assemble and supply the buses for the Zimbabwean market. The agreement specified that QMC would receive completely knockdown kits, technically known as CKDs and semi knockdown kits (SKDs) from China to assemble at QMC plant in Mutare,” said the source.
The contact added that since the agreement in 2014, QMC has assembled six buses for local schools and colleges.
“To date, QMC has assembled six buses which were supplied to local schools and colleges. The company couldn’t assemble many buses because of lack of market. It might help the company if Government could give big orders to the company so that it can assemble more buses,” said the contact.
Same contact said QMC had the experience and technical expertise to assemble durable buses.
“Quest currently holds the franchise for BMW, Chery, Foton, JMC, Mitsubishi, Peugeot vehicles and ZhongTong buses. This shows that the company has experience and technical expertise to assemble vehicles including buses that are compatible with the Zimbabwean terrain. If fully supported, QMC can directly employ about 4 500 workers and another 20 000 workers in its industrial ecosystem.
“I therefore urge the Government to support QMC so that it can operate at full throttle in order for it to supply the local market as well as create employment,” added the contact.
Economic Analyst, Trymore Chitsiga, said Government should enter into an order financing arrangement with QMC, which is cheaper than sourcing buses from outside.
“In line with Government efforts of capacitating local industries and revamping the public mass transport system, Government should enter into an order financing arrangement with QMC which is cheaper than importing buses from outside. On average, a single Yutong bus needs about US$120 000 to land in Zimbabwe. However, locally assembled buses would require approximately US$40 000 for the importation of drive lines which include chassis, gearbox and engine. The rest of the components can be sourced locally thereby saving the country a lot of foreign currency,” said Chitsiga.
Chitsiga added that Government should also help capacitate other bus assembling companies like Deven Engineering and AVM Private Limited, which are also facing operational challenges due to lack of adequate financing and ready market.
A contact within the Ministry of Finance and Economic Development told this publication that Government was already supporting local bus assemblers through various incentives. The contact further said in line with the National Development Strategy Phase one (NDS1), Government indicated in the 2021 national budget that the reduced five percent customs duty incentive for bus importers would be scrapped to allow companies to procure locally assembled buses.
Government is in the process of revitalizing the public transport system and the capacitation of local bus assemblers is a positive step towards the achievement of an efficient transport system in the country.
