Motor dealer CMC Kenya is moving away from mass-market passenger vehicles to focus more on agri-based mobility machines. In a strategic shift that has left out big vehicle brands, CMC Kenya will no longer represent Ford, Suzuki, and Mazda in Kenya, according to a press release shared with media today.
Ford will be moving to Salvador Caetano in the third Quarter of 2023 and Suzuki will be supported by CFAO from the second Quarter of 2023. Under the new order of things, Mazda will announce a new distributor in the coming months.
CMC Group announced the major shift in business strategy on 24th April, which will see it invest and refocus growth efforts towards the agriculture mechanization as well as the two-wheeler sector, which includes motorbikes.
It said the change in strategy follows the Government agenda to transform and rapidly grow Kenya’s agricultural sector. The agricultural sector is the backbone of the East African economy, contributing approximately 33% of Kenya’s Gross Domestic Product (GDP).
Mr Sakib Eltaff, Managing Director, CMC Motors Group, said the company has already recorded great success in the agricultural sectors of Tanzania and Uganda, having sold a record number of tractors in 2022 within both countries. Mr Eltaff said CMC Group is setting up an assembly facility in collaboration with CNH Industrial and the Ministry of Agriculture in Uganda.
CMC Group aims to further strengthen its agriculture sector interests in the region with plans to expand its reach and continue selling its portfolio of New Holland tractors, alongside an extensive range of farming implements from New Holland, Nardi and Fieldking.
CMC Group also intends to solidify its position in the two-wheeler sector as the company is exploring the possibility to set up a two-wheeler assembly facility in Nairobi. Two-wheelers are an essential tool of trade in East Africa and a strong localization plan will enable the company to deliver on its promise of being a customer-centric organisation.
“Africa’s agriculture sector has been going from strength to strength in the past few years and the demand for agriculture solutions is now stronger than ever,” said Mr Eltaff. Our mission is to give our local agricultural customers easy access to world-class mechanization solutions and play a key role in making sure that the region continues to make progress in the quest for food security.”
Meanwhile, CMC says it has formalized a detailed succession plan to ensure a seamless and smooth transition for their current passenger vehicle customers, with aftersales commitments that will extend for the next few months.
Mr Eltaff said in the last few years, there have been rapid changes in market dynamics owing to Covid-19, production slowdowns and supply-chain disruptions, which have impacted the passenger vehicle market, not just in the region but globally.
We thoroughly studied the situation and took the decisive step to shift focus,” Mr Eltaff says. It wasn’t an easy choice for us, as we have been very proud to represent global automotive brands such as Ford, Suzuki, and Mazda, and we will certainly ensure our customers continue to experience high standards of service during the transition to the new partners.”
CMC Motors Group Limited has established name in the automotive and agricultural sector, with presence in Kenya, Tanzania, and Uganda.
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