CFAO Motors (formerly Toyota Kenya) has combined operations with DT Dobie with an aim to improve operational efficiency and expand their market share in the Kenyan new vehicle market.
DT Dobie has transferred all its business operations to CFAO Motors Kenya, which took effect April 1st 2023 and the two automotive companies will now run under one entity; CFAO Motors Kenya.
The merger is part of CFAO Group’s internal business reorganization project to streamline and simplify the structure of its mobility business in Kenya by combining the operations of CFAO Motors Kenya Limited and DT Dobie Kenya
This comes at a time when the industry trends show that sales on luxury vehicle brands such as Mercedes Benz and BMW among others have dropped by 65.5 percent in the first quarter of 2023, and is therefore expected to bring about an increase and sustainability in sales.
“This new business positioning greatly enhances our automotive value proposition in the market with the largest portfolio of mobility solutions across this wide segment of customers as well as the largest after-sales service network in the country,” said The Managing Director CFAO Motors, Arvinder Reel, speaking during the official announcement.
“With a combined market share of 29 percent, we are hopeful that our business will increase as we provide two-wheelers, entry-level, luxury models, as well as trucks to our customers,” he added. “We are looking to grow it by another 5 or 10 percent.”
Arvinder Reel maintains his position as the Managing Director of the entity; CFAO Motors while the Toyota and Yamaha Division will be headed by Mr. Joshua Anya, Deputy Managing Director and will oversee all Toyota business, Automark pre-owned vehicles as well as the Yamaha 2-wheel division. Joshua will also be responsible for the body and paint shop.
The second division is the multi-brand and equipment division will be headed by Chris Ndala who will oversee multi-brand passenger car makes which include; Volkswagen, Suzuki and Mercedes Benz passenger cars. This division will also include the truck and bus business with Hino, Hyundai, Mercedes Benz and Sinotruk (HOWO).
Lastly, the Winpart and Autofast Division, will be headed by Abderrahmane Mairi, Chief Operating Officer who will oversee the Value Parts as well as AutoFast quick service stations (in partnership with TOTAL Energies).
The back-office support teams such as finance, corporate support, Human Resources and customer relations have been consolidated to ensure the merged entity operates efficiently.
CFAO Motors Kenya now has the largest dealer network in the country at 36 with the combination of branches, dealerships and authorized service centres. According to data from the Kenya Motor Vehicle Industry Association (KMIA), the merged entity will have a market share of nearly 30 percent