Motorcare Uganda has raised concerns over high taxation, weak electric vehicle infrastructure, and affordability challenges affecting growth in the country’s automotive sector, as it launched a new two-level vehicle workshop in Kampala.
The facility, developed by a London-based automotive company, is being positioned as one of the most advanced in East Africa and potentially sub-Saharan Africa. It also marks the introduction of French automotive group Stellantis into the Ugandan market, with initial rollout of Peugeot and Citroën models.
However, industry officials say structural challenges continue to slow expansion, particularly in the premium and electric vehicle segments.
Speaking at the launch, Florence Ssempebwa Makada, Managing Director of Motorcare Uganda, said affordability remains a major barrier for many potential buyers.
“One of the biggest challenges is affordability. While there is demand for premium vehicles, many customers are still affected by high upfront costs and limited financing flexibility,” she said.
Makada noted that the electric vehicle market is also growing slowly due to insufficient charging infrastructure and limited policy incentives.
“The infrastructure is not yet in place. Charging stations are still very limited, and investors are asking a valid question — whether there are enough electric vehicles on the road to justify their investment,” she said.
She added that the removal of earlier tax incentives had negatively affected the growth of the automotive sector, especially for new and electric vehicles.
“When exemptions were in place, we saw improved uptake. Once they were removed, the momentum slowed significantly,” she said.
Makada also pointed to persistent spending on used vehicles, arguing that some consumers end up incurring higher long-term costs due to frequent breakdowns.
“People are still spending over Shs100 million on used vehicles that repeatedly break down. In the long run, that becomes more expensive than investing in reliable, structured financing options for new vehicles,” she said.
She, however, acknowledged that access to financing remains a key constraint even for buyers of new premium brands.
Motorcare said it plans to expand access through structured financing partnerships with banks and strengthen after-sales services to improve customer confidence.
The company also called for government support through tax incentives to accelerate adoption of electric vehicles.
“We need supportive policies, especially tax relief on electric vehicles, to help grow the market and make them more accessible,” Makada said.
She added that investment in charging infrastructure will depend on the growth of electric vehicle numbers on the market.
“There is no incentive for infrastructure investors if there are no vehicles to support it. The two must grow together,” she said.
In the short term, Motorcare said it will focus on supplying vehicles to institutional clients, including UN agencies and embassies, which currently account for a significant share of the premium vehicle market in Uganda.
