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February 25, 2008: For nearly a decade as the Kenyan economy gradually slipped into a recession squeezing the new motor vehicle market, Japanese car maker Toyota stood out as the more versatile dealer controlling more than a quarter of the entire market. Until 2004, Toyota had firmed its grip on the new car market and opened a market share gap of close to 10 per cent with its closest rival. As the economy entered the recovery mode, demand for new motor vehicles has been most robust in the commercial segment of the market where Toyota - with a brand line that mainly comprises of saloon cars - is least represented. Kenya Motor Industry (KMI) statistics show that over the past three years Toyota East Africa has been losing market share to CMC and General Motors. The Japanese auto maker's market share dropped to 22 per cent in 2007 from 26.6 per cent in 2005. During the same period, CMC Motors' share of the market rose steadily from 14.8 per cent in 2005 to 19.6 per cent last year - bringing it within touching distance with Toyota. The American auto dealer's market share has expanded from 16.2 per cent in 2005 to 18.5 per cent last year lighting the fire from under the seats of the market leaders. The saloon car market has in the past three years come under serious attack from the imported second hand vehicles increasing the pressure that Toyota has been feeling since the market was liberalised in 1992.

Read the full story at Business Daily Africa

Posted Under: Auto Dealers