Toyota drives up market share by 5pc as it seeks to regain top spot

PHOTO | FILE Toyota Kenya managing director Naoki Takeuchi: The impressive performance was also boosted by growing uptake of Tsusho Capital financing options offered to Toyota customers.  NATION MEDIA GROUP

By JOHN NJIRU

In Summary

• Firm reaps big from its huge investment in marketing Hilux pick-ups, as General Motors sees its market share decline to 22.2pc, compared with 24.7pc in January

Toyota Kenya’s share in the new vehicles market went up by 5 per cent in February, underlining the company’s bid to reclaim the top position it lost to General Motors in 2011.

Latest statistics from the Kenya Motor Industry Association show that the firm sold 185 units out of 925 vehicles sold in the month, raising its share to 20 per cent compared with 15.83 per cent in January.

In the same month, General Motors East Africa saw its market share drop to 22.2 per cent, compared with 24.7 per cent recorded the previous month.

In an interview with the Nation, Toyota Kenya managing director Naoki Takeuchi said the company is now reaping from its huge investments in the marketing of its Hilux pick-ups. The impressive performance was also boosted by the growing uptake of Tsusho Capital financing options offered to Toyota customers.

Pushing the limits

“The Hilux pick-up brand has undergone improvements over the years, pushing the limits of innovative car technology and dynamic styling. The vehicle was also recently upgraded,” Mr Takeuchi said.

General Motors, helped by its flagship Isuzu trucks and buses, has dominated the market year-on-year since 2011 as consumer preference shifted from luxury cars to commercial vehicles.

A government plan to phase out 14-seater matatu vehicles also contributed to GMEA’s growth in market share as investors in the public transport sector opted for buses.

Heightened activity in the construction, manufacturing and transport sectors over the past few years has also increased the need for pick-ups, trucks, buses and prime movers.

Second-hand market

Meanwhile, the saloon segment has undergone a bruising battle with the second hand market. The industry faces stiff competition from the second-hand market, which registered a 10 per cent growth to sell 6,454 vehicles in January.

General Motors has now invested Sh100 million in an upgrade of its plant in efforts to triple its capacity. Toyota, on the other hand, has introduced a new range of vehicles, including Hino trucks and buses, into the Kenyan market, seeking to grow its earnings.

DT Dobie, the local Mercedes and Nissan distributor, sold 157 units in the month, retaining its third best position with 16.9 per cent market share.

CMC, the only auto dealer listed on the Nairobi Securities Exchange, controlled 10 per cent of the market.