CFAO Motors Kenya and DT Dobie, two major motor vehicle dealers, have recently announced their merger, with the aim of expanding their market share in the Kenyan new vehicle market. The merger involves DT Dobie transferring its business assets to CFAO Motors Kenya, resulting in the integration of the two businesses into a single entity. The move is part of CFAO Group’s efforts to simplify and streamline its mobility business in Kenya by combining the operations of CFAO Motors Kenya Limited and DT Dobie Kenya.
CFAO Motors Kenya has also expanded its local assembly offering by bringing together the assembly of various vehicles, including Landcruiser 79 (LC79), Hilux pick-ups, Hiace and Hino trucks at Associated Vehicle Assembly (AVA) in Mombasa, and the VW Polo, Tiguan, Touareg, T-cross, Mercedes truck and buses and Hyundai trucks at Kenya Vehicle Manufacturers (KVM) at Thika, Kiambu County.
The merger has led to the formation of the largest dealer network in Kenya, with 36 branches, dealerships, and authorized service centers under the new entity’s umbrella. Additionally, the merger has resulted in a market share of nearly 30 percent for the merged entity, according to data from the Kenya Motor Vehicle Industry Association (KMIA).
Managing Director Arvinder Reel expressed his excitement at the new business positioning and said that it would enhance the company’s automotive value proposition in the market with the largest portfolio of mobility solutions across a wide range of customer segments, as well as the largest aftersales service network in the country.