How Renault plans to capture East Africa truck market

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Renault Trucks has opened a local assembly plant in Thika, an industrial town in the outskirts of Kenya’s capital of Nairobi, as it seeks to cement its business in Kenya and expansion in the East Africa region.

The move follows the establishment of a long-term partnership with the local exclusive importer CMC Motors and unveiling of their new C and K ranges in Mombasa and Nairobi.

READ:Renault taps CMC Motors to distribute its heavy commercial trucks

The plant, which was commissioned by Industrialization Principal Secretary Dr. Francis Owino in the presence of Renault Trucks President Bruno Blin and Al-Futtain Group Senior Managing Director Colin Cordry, will see the company and CMC Motors create over 200 new jobs with additional opportunities set to be generated across the value chain.

In alignment with the 2030 Kenya industrialization vision, Renault Trucks vehicles count with a guaranteed French origin, but are assembled locally. Since 1974, CMC Motors has established a partnership with Kenya Vehicle Manufacturers (KVM).

READ ALSO:How Kenyan manufacturers will grow sector by 2022

With the assembly of Renault Trucks, the objective is to strengthen its position as a key player of the automotive industry in East Africa, fully aligned with the country’s economic development agenda.

“We are more than pleased to be here and make this possible. We are still guaranteeing the best products and services offer, while contributing to employment and industrialization of the country,”said Bruno Blin, President Renault Trucks Africa.

“This comes in line with our arrival in the region, taking Kenya as our development Hub to achieve our long-term vision, alongside CMC Motors, our exclusive partner in the country”.

PS Owino  said the government is developing the National Automotive Policy which will serve to give direction and impetus for the development of a vibrant automotive industry. The main policy objective is to make Kenya an automotive manufacturing hub in the region.

READ ALSO:Renault joins scramble for Africa’s car manufacturing

“The local automotive industry in Kenya is characterized   by dominance of used imported (second hand) vehicles, automotive assembling oriented towards passenger and commercial vehicles, lack of local full manufacture, and reliance on KD (Knocked Down) kits due to minimal local parts production,” Owino noted.

“On this note, I urge this company to consider sourcing materials and parts for their assembly from local manufacturing entities such as the Numerical Machining Complex (NMC) and SMEs involved in the production of these parts,” said Dr  Owino.

Like as Renault Trucks CMC Motors is fully committed to the country’s economic strategy by promoting local production with added value, job creation and competence development.

A regional training center is also now operating in Nairobi, allowing Kenya to become a regional Hub for South East Africa region to support competence development. This Renault Trucks training center is part of the Al Futtaim Academy and has already held some technical trainings organized by the French manufacturer.

Renault Trucks has a presence over 100 countries offering commercial vehicle users a variety of innovative services and vehicles (from 2.8 to 120 T) adapted to a wide range of transport activities ranging from distribution, construction, heavy construction, long distance.

As part of the AB Volvo Group, Renault Trucks are unrivaled within the European Truck Segment offering sturdy and reliable low fuel consumption vehicles, personalized maintenance and spare parts availability, enabling customers to enjoy greater productivity and control operating costs.

In Africa, Renault Trucks ever growing client trust has led the brand to the first place in many African countries such as Tunisia, Algeria, Ivory Coast, Senegal or Guinea.

READ ALSO:Hyundai Motors Ghana launches 2019 Hyundai Santa Fe

CMC Motors Group Ltd is owned by CMC Holdings Ltd and was acquired by the Al-Futtaim Group in 2014. Other trading subsidiaries owned by CMC Holdings Ltd include, Cooper Motor Corporation (Uganda) Ltd, Hughes Motors (Tanzania) Ltd,Kenya Vehicle Manufacturers Ltd (33% shareholding).

CMC Motors Group Limited is a leading player in the East African motor industry with exclusive distribution of Ford, Mazda, and Suzuki vehicles. CMC also distributes UD, Eicher and Renault Trucks (medium and heavy commercial) and buses.

As well New Holland tractors with an extensive range of farming implements from ploughs through to irrigation equipment.

The accident repair workshop at CMC is equipped with the latest equipment in dent repair and re-spray booths.

CMC Motors Group Limited has seven branches countrywide and six divisions at head quarters in Nairobi. With its two sister companies in both Uganda and Tanzania, CMC Motors Group has by far the largest distribution network in East Africa for sales, parts and service.

Martin Mwita is a business reporter based in Kenya. He covers equities, capital markets, trade and the East African Cooperation markets.

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