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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.

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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

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BT Reporter
BT Reporterhttp://www.businesstoday.co.ke
editor [at] businesstoday.co.ke
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