Motor vehicle dealers CFAO Motors Kenya, formerly Toyota Kenya, and DT Dobie have merged their operations to become one entity to increase efficiencies and grow market share.
CFAO Motors Kenya said that the respective businesses of CFAO and DT Dobie, which holds the Mercedes brands franchise in the country, will be run under one entity – CFAO Motors Kenya.
The companies have been operating independently for a decade despite their common ownership after Japanese conglomerate Toyota Tsusho Corporation (TTC) acquired trading firm CFAO Group in December 2012, taking over its many subsidiaries in Africa including DT Dobie.
“The internal restructure brings together two strong, well-established and respected automotive companies in Kenya which will continue to provide our excellent and diverse products and services under one entity, CFAO Motors Kenya Ltd,” the company said.
Under the new arrangement, the former Toyota Kenya will now serve as the corporate head office and remain with the business of selling its namesake Japanese vehicles including Prado models as well as Yamaha motorcycles.
The new deal has also relinquished the Hino trucks and Suzuki passenger car dealership to the operations of what was formerly DT Dobie, expanding its multi-brand portfolio that includes Volkswagen and Mercedes.
“CFAO Motors Kenya brings together the expertise, resources and capabilities of these two respected brands, to provide a wider range of high-quality vehicles and services to customers in Kenya,” the company said.
The reorganised entity, the latest major development in the vehicle market in the country, will offer more diverse range of premium vehicles, including luxury cars, SUVs, trucks and commercial vehicles, from leading global brands.
Other dealerships that have already announced changes in the sector include CMC Motors which announced its plans to exit the passenger vehicle business and focus on agricultural equipment. The decision will see it relinquish the Ford and Mazda dealerships to rivals.
