Toyota Kenya is targeting a five per cent growth in the local new motor vehicle market this year and is banking on asset financing to rump up business.
This is after after recording mixed results in 2019, when it missed out on the lucrative government vehicle lease.
The company's total new car market was 12,867 units last year, an eight per cent drop compared to 14,003 units the previous year when it leased about 1,380 units to the National Police Service.
Total sales, less the leases, however slightly grew two per cent from 12,623 units in 2018, despite a tough operating business environment occasioned by limited access to credit during the interest rate cap regime.
“We have seen a decline which happens at times, when the government does not lease,” managing director Arvinder Reel said during an editors forum in Nairobi.
During the year, trucks and buses accounted for 6,734 units while passenger vehicles sales totalled 6,142.
Lack of a lease deal mostly affected the passenger segment which was at a high of 6,691 in 2018.
Toyota's total market share(including trucks and buses) stands at 24 per cent after Isuzu which has a 38 per cent share. Mitsubishi comes third with a 14 per cent share, among major manufacturers.
Excluding trucks and buses, Toyota leads with a 48 per cent share, Isuzu 17 per cent while Nissan and Ford each follow with a six per cent share.
Toyota is now counting on the removal of interest rates cap to increase access to car loans, extensive marketing campaigns and introduction of new models to grow its business in the country.
“Motor vehicle is an expensive asset and as banks realign themselves, we are looking at a positive growth going forward,” said Andrew Omolo, general manager-sales and marketing.
The company last year re-opened its local Toyota Hilux model assembly line in a Sh1 billion investment, adding to the Toyota Land-cruiser popular with the National Police Service and tour operators, and the Hino 300 and 500 series trucks and buses.
It is expected to commence assembling of three new makes by half one of this year.
“We need to tweak and see how we can grow on our African market and Kenya is a very important market for us,” Reel said.
Other Toyota Franchisee in Kenya include Hino,Yamaha and Suzuki.
It has eight branches, five dealers and 19 authorized service centers across the country.
