Toyota Kenya warms up to local production

By Correspondent

Toyota Kenya Wednesday said it is considering setting up a new local production line for its new car models, which is expected to be operational once a fact-finding mission is complete.

The car dealer confirmed it is looking into the prospects of limited manufacturing of motoring components and has commenced research to be undertaken in collaboration with the government in setting up local assembly plant.

“We are doing further research to see what next, what other models to assemble here,” said the Chairman of Toyota Kenya Dennis Awori during the launch of Toyota Hilux and Fortuner brands in Nairobi.

The move, according to the Japanese car maker would improve Toyota Kenya’s market share in the local market which is currently dominated by General Motors East Africa (GMEA) leading with new vehicle sales from its flagship Isuzu trucks and buses. Toyota has largely been confined to the small cars and trucks segment.

Data by Kenya Motor Industry (KMI) shows that the number of locally assembled vehicles dropped 35.2 per cent in the first three months of the year while motor assemblers have cut their output to 1,600 units in the year to March, down from 2,472 in a similar period of 2015 and 2,040 units a year earlier.

This has been attributed to high interest rates, stringent lending terms that have diminished the demand for new vehicle.