CFAO Motors Maintains Market Dominance In Kenya

According to the KMI market share report, CFAO maintained its market dominance in the general segment, excluding the Trucks—medium and Large Buses category, with a 59% share.

Local mobility solutions provider CFAO Motors Kenya’s strategic initiatives, including its recent merger and business consolidation efforts, have powered the firm to a sustained market share gain, data by Kenya Motor Industry (KMI) 2023 indicates.

According to the KMI market share report, CFAO maintained its market dominance in the general segment, excluding the Trucks—medium and Large Buses category, with a 59% share.

CFAO Motors Kenya’s dominance was primarily fueled by stable sales derived from its flagship Toyota brand, with a 53% contribution and increased contribution from non-traditional market segments, including passenger vans and Prime Mover categories.

In the total market analysis, CFAO Motors Kenya enjoyed a 32% growth, up from 28% registered in 2022, with total sales of 3639 vehicles across its Toyota, Suzuki, Hino, VW, Mercedes Benz, Hyundai and SINOTRUK portfolio.

Speaking when he confirmed the details, CFAO Motors Kenya Managing Director Mr Arvinder Reel said the firm is beginning to reap growth benefits attributed to the firm’s recent rebranding, local assembly and consolidation strategy.

The strategic merger of Toyota Kenya and DT-Dobie, he said, has allowed the firm to boost its local assembly capacity and deliver a more expansive portfolio of mobility solutions to a growing and diversified client base. Strategic local assembly initiatives, including Kshs 300 million investments in the local assembly lines for Toyota Hilux Pick-ups, Toyota Hiace Passenger Vans and Toyota Fortuner Sports Utility Vehicles, also contributed to the accelerated growth last year.

CFAO Motors’ portfolio expansion in the Truck and Bus category in 2023, with the addition of the SINOTRUK brand, also inspired growth in the highly competitive Truck and Bus category.  SINOTRUK has begun to make a mark in the category and is now ranked as the leading Prime Mover with a 48% Market share thanks to its growing demand, particularly in the building and construction sector. Overall, in the Truck and Bus category, Isuzu continues to enjoy a 66% market share, followed by Simba Corp at 15%, while CFAO comes in 3rd at 9%, with SINOTRUK contributing 4% of the share.

“The KMI market share report for the calendar year 2023 confirms that the CFAO Motors Kenya strategy is set on a solid foundation. We are investing heavily to grow our market share further and explore new mobility horizons, including Hybrid vehicles, as part of our commitment to be Kenya’s most preferred mobility solutions provider.”

He added, “The market witnessed a significant decline from the Pick-Up segment with both Single Cab 4×2 and Double Cab 4×4 segment experiencing decline in the wake of a weakening shilling, decreased government expenditure and increased interest rates affecting borrowers, inherently impacting the total auto industry in general amidst these uncertain economic times.”

The locally assembled Toyota Hiace Van maintained a growth trajectory as the preferred Matatu option in public transport. The growth of the Toyota Hiace Passenger Vans is attributed to increased demand by discerning public service transport operators who prefer the competitively priced van for its value for money and enhanced safety standards.

The company, he disclosed, is optimistic about further growth this year as the Government’s Leasing programme resumes.

Read: Joshua Anya Appointed First Deputy MD For CFAO Motors

>>> CFAO Motors Splashes Ksh30 Million on The WRC Safari Rally

Latest

How to Invest in Kakuzi Shares

Investing your money in Kakuzi shares can help you...

Safaricom Reveals Strategic Secrets at Ethiopia Investor Day

Safaricom PLC on Saturday 22nd Feb 2023 held its second investor day in Addis Ababa, providing an opportunity for the investment community to gain insights into the company's achievements and future plans as well as see the progress so far in Ethiopia rollout.

Safaricom Investment Co-operative Pays Out Sh142.4 Million

Safaricom Investment Co-operative shareholders have approved a ksh142.4 million rebate payout during the 15th Annual General Meeting.

Firms Announce Merger Deal to Expand Services

Dalberg Implement, a leader in on-the-ground program implementation with vast expertise in strategy execution, and Axum, an Afrocentric impact firm dedicated to fostering inclusive growth across the Global South, have announced a merger.

Follow Us

Newsletter

Don't miss

Throwing The Girls Into Deep End: Single Kiasi S3 First Look

Nairobi’s dating scene is about to get messy: Single Kiasi...

Win New Year Crossover Mugithi Tickets With Odibets

The event has attracted prominent Kikuyu musicians who will be headlining the event including Samidoh and Muigai wa Njoroge.

For Coloured Girls is Theatre Production of the Year

The play ‘For Coloured Girls (who have considered suicide/ when...

Tusker Oktobafest Rolls East African Cultures into One

From regional events across Kenya to inaugural gatherings in Uganda and Tanzania, and the Tusker Oktobafest grand finale in Nairobi, the festival harmonized traditions, celebrated diversity, and highlighted the rich cultural tapestry of the East African culture

Lupita’s Little Brother Junior Nyong’o Charting His Own Path in Acting

Junior Nyongó, who is also a musician and a DJ and now a graduate of UC San Diego with an MFA in Acting, is crafting his own solid path in the world of acting with roles in major theatre productions.

Safaricom To Power Tusker OktobaFest Beer Festival

Safaricom’s involvement in OktobaFest as a technology and payments partner will focus on fostering seamless in-festival connectivity, empowering the youth and Gen Z community through Safaricom Hook, and powering digital payments through M-PESA.

Music Producers Launch Organization To Streamline Recording Industry

Recording Industry of Kenya (RIKE) was launched on 9th October 2023. Registered in 2022 as a not-for-profit organization, RIKE aims to promote the collective interests of producers of sound recordings in the country.

Nairobi’s Hero Bar Listed Among World’s 50 Best Bars

World Best Bars: Hero Bar in Nairobi continues to climb the list, moving up six places to No.62 and Johannesburg’s Sin + Tax comes in at No.94. Dubai new entry Ergo is at No.69 and Melbourne’s Byrdi has re-entered the list at No.61.

Kenyan DJs Face Off In Smirnoff Battle Of The Beats Season 3

The Smirnoff Battle of the Beats Season 3, a DJ competition, is poised to unleash an unprecedented musical frenzy countrywide.

The Highs And Lows Of Betty Kyallo, Sisters Show As Season 2 Ends

Kyallo Kulture has always been, above all, about sisterhood, and in Season 2 we have witnessed the charm of it - the ups that gave us wholesome moments as the sisters led by Betty Kyallo spent time together.
BT Reporter
BT Reporterhttp://www.businesstoday.co.ke
editor [at] businesstoday.co.ke

How to Invest in Kakuzi Shares

Investing your money in Kakuzi shares can help you turn money into more money, whether you are planning for retirement, looking to boost personal...

Safaricom Reveals Strategic Secrets at Ethiopia Investor Day

Safaricom PLC on Saturday 22nd Feb 2023 held its second investor day in Addis Ababa, providing an opportunity for the investment community to gain insights into the company's achievements and future plans as well as see the progress so far in Ethiopia rollout.

Safaricom Investment Co-operative Pays Out Sh142.4 Million

Safaricom Investment Co-operative shareholders have approved a ksh142.4 million rebate payout during the 15th Annual General Meeting.

LEAVE A REPLY

Please enter your comment!
Please enter your name here