CMC Motors Group Ltd has announced its new and refocused business strategy focusing on agriculture mechanization. The Company states that the focus on agriculture was in an effort to align itself with the Government’s agenda to transform and rapidly grow the agricultural’s sector.
This was announced vide a Press Statement. “One of East Africa’s leading mobility companies, the CMC Group (CMC”) has announced a major shift in business strategies, which will see the company further invest and refocus growth efforts towards the agriculture mechanization as well as the two-wheeler sectors. The change in strategy follows closely on the heels of the Government’s agenda to transform and rapidly grow Kenya’s agricultural sector. The agricultural sector is the backbone of the East African economy, contributing approximately 33 percent of Kenya’s Gross Domestic Product (GDP)” read part of the statement.
The Company further stated that it had witnessed record tractor sales in 2022 within Tanzania and Uganda. “CMC has already seen great success in the agricultural sectors of Tanzania and Uganda, having sold a record number of tractors in 2022 within both countries. The company is setting up an assembly facility in collaboration with CNH Industrial and the Ministry of Agriculture in Uganda. Foreseeing the tremendous growth potential, CMC aims to further strengthen its agriculture sector interests in the region with plans to expand reach and continue selling its portfolio of New Holland tractors, alongside an extensive range of farming implements from New Holland, Nardi and Fieldking.” read part of the statement.
The company also seeks to solidify its position in the two-wheeler section. It states that it would be exploring the possibility of setting up a two-wheeler assembly facility in Nairobi. It is the official dealer of Hero and Hunter brands of motorcycles.
This effectively means that CMC ceases being the distributor of Ford, Suzuki, and Mazda brands in Kenya. Ford will now be distributed by Caetano Kenya. Caetano is also the distributor of the KIA brand of vehicles. Suzuki will now be under CFAO (previously Toyota Kenya). Mazda is yet to announce its new distributor.
Brief History of CMC Motors
CMC Motors Group Ltd is owned by CMC Holdings Ltd and was acquired by the Al-Futtaim Group in 2014. Before its acquisition by the Al-Futtaim Group in 2014, it was one of the few motor companies trading on the Nairobi Securities Exchange (NSE). Following the acquisition, it was delisted from the NSE effective 11 February 2015.
The company has other trading subsidiaries which include:
- Cooper Motor Corporation (Uganda) Ltd.
- Hughes Motors (Tanzania) Ltd
- Kenya Vehicle Manufacturers Ltd (33% Shareholding)
For a long time, CMC Motors had been the distributor of Ford, Suzuki, and Mazda brands in Kenya. Previously, it was also the distributor of Land Rover and Jaguar before the same was taken up by Inchcape Kenya Limited.
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