CMC Motors Group is looking to expand into the heavy commercial vehicle services while Renault Trucks is seeking a gateway into tthe East Africa region.
What better time then for the two to partner so as to meet each others needs.
The deal is expected to create 200 new jobs in the country as the trucks from the French car manufacturer will be assembled locally in a further partnership with the Kenya Vehicles Manufacturer (KVM).
CMC Motors and Renault Trucks also expect the agreement to create a variety of other opportunities along the value chain.
According to Renault Trucks Africa Vice President, Cyril Barille, East Africa is one of the fastest growing regions, a factor contributing to increased demand for logistics services and equipment.
“This demand is driven by the end-to-end logistics for industries, retail and agricultural production. Additional demand has come from the construction industry with governments investing in the development of trunk infrastructure such as roads, water and sewerage as well as electricity,”Mr. Barille said.
CMC Motors CEO Noel Mabuma said the entry of Renault trucks into the market will enhance its offering within the heavy commercial vehicle segment to meet increasing demand from both existing and emerging industries.
As per the deal, CMC Motors, which is part of the Al Futtaim Group, will utilize its regional reach to promote Renault Trucks activities. A regional training center will also be opened in Nairobi.
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