British multinational automotive distributor Inchape will add BMW to its car dealership as from next year after reports indicate that current dealers Simba Corp are set to lose out on distrbuting the German automobile.
This will come as a blow to Simba Corp who are reportedly eyeing expansion into the recently liberalised market of Ethiopia.
According to Business Daily Africa (BD), the deal continues the musical chairs in Kenya’s vehicle market where automakers are constantly reviewing their existing franchises.
Already, DT Dobie has prized away Volkswagen from CMC Motors but has lost out on the Nissan franchise to Crown Motors. General Motors on the other hand has terminated Isuzu East Africa’s sale of Chevrolet cars.
Inchape recently took over Jaguar Land Rover in the Kenyan market as the result of a tender process after Jaguar Land Rover amicably concluded its distribution agreement with RMA Motors Kenya. RMA opted to consolidate its focus on developing other retail businesses in South East Asia.
The deal saw Inchape retain some of the RMA employees so as to facilitate a smooth transition. Sanjiv Shah for example, who was previously chief executive of RMA Kenya, was appointed CEO Inchcape Kenya & Uganda.
Inchape will reportedly begin distributing BMW as from early 2019, across eight markets in the region including Kenya, Uganda and Tanzania , according to BD.
BD estimates that Inchape will inherit the largest share in Kenya’s luxury car market after securing the BMW franchise, placing it above DT Dobie which sells the Mercedes franchise.
Currently, Simba Corp distributes BMW in the Kenyan market via Bavaria Auto. BD reports that Bavaria have reviewed their global strategy and have informed Simba Corp they plan to transfer the BMW franchise to Inchape.
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