Kenyan-based automaker Mobius Motors, known for its low-cost SUVs designed for the African market, has announced plans to enter voluntary liquidation after nearly a year of unsuccessful rescue efforts. Backed by Playfair Capital, the company has faced significant financial challenges, including difficulties in settling debts and paying employee salaries.
In a statement, Nicolas Guibert, a director at Mobius, confirmed that at a shareholder meeting on August 5, 2024, it was resolved to place the company under liquidation in accordance with Section 393(1)(b) of Kenya’s Insolvency Act. KVSK Sastry has been appointed as the liquidator to oversee the winding-up process.
Mobius Motors, founded in 2009 by British national Joel Jackson, initially aimed to fill a gap in the market by producing durable, low-cost SUVs suitable for the rugged terrains of Africa. The company’s first model, launched in 2014, was priced at $10,000, significantly lower than the average cost of SUVs in Kenya. However, despite raising $56 million across five funding rounds and releasing subsequent models—Mobius II in 2018 and Mobius III in 2021—the company struggled to gain a foothold in a market dominated by second-hand imports from the UK, Japan, and other Asian countries.
Production at Mobius was primarily tied to pre-orders, which required a refundable deposit of $384, signaling the limited market demand for its vehicles. Despite initial support from investors like Playfair Capital, Chandaria Industries, DFC, and PanAfrican Investment, Mobius was unable to sustain its operations.
The liquidation of Mobius Motors marks the end of a venture that once held promise as a pioneer in the African automotive industry. The company’s ambitious vision of creating affordable, rugged vehicles for Africa’s challenging roads ultimately fell short in the face of stiff competition and financial hurdles.
