CMC Kenya Remobilizes to Focus on Agriculture Mechanization Solutions In Strategic Change Of Direction
- The strategic shift follows on from a record-breaking year of tractor sales across markets
- CMC Kenya will also reinforce its position in the two-wheeler segment
- In keeping with the new business strategy, CMC will no longer be the brand representatives for the passenger vehicle brands, Ford, Mazda, and Suzuki in Kenya
One of East Africa’s leading mobility companies, the CMC Group (“CMC”) has announced a major shift in business strategies, which will see the company further invest and refocus growth efforts towards the agriculture mechanization as well as the two-wheeler sectors.
The change in strategy follows closely on the heels of the Government agenda to transform and rapidly grow Kenya’s agricultural sector. The agricultural sector is the backbone of the East African economy, contributing approximately 33 percent of Kenya’s Gross Domestic Product (GDP).
CMC has already seen great success in the agricultural sectors of Tanzania and Uganda, having sold a record number of tractors in 2022 within both countries. The company is setting up an assembly facility in collaboration with CNH Industrial and the Ministry of Agriculture in Uganda. Foreseeing the tremendous growth potential, CMC aims to further strengthen its agriculture sector interests in the region with plans to expand reach and continue selling its portfolio of New Holland tractors, alongside an extensive range of farming implements from New Holland, Nardi and Fieldking.
CMC also intends to further solidify its position in the two-wheeler sector as the company is exploring the possibility to set up a two-wheeler assembly facility in Nairobi. Two-wheelers are an essential tool of trade in East Africa and a strong localization plan will enable the company to deliver on its promise of being a customer-centric organisation.
Speaking about the change in strategy, Sakib Eltaff, Managing Director, CMC Motors Group, said, “Africa’s agriculture sector has been going from strength to strength in the past few years and the demand for agriculture solutions is now stronger than ever. Our mission is to give our local agricultural customers easy access to world-class mechanization solutions and play a key role in making sure that the region continues to make progress in the quest for food security.”
The shift in strategy means that CMC will move away from the mass-market passenger vehicle segment. The company will no longer represent Ford, Suzuki, and Mazda in Kenya.Ford will be moving to Salvador Caetano in the third Quarter of 2023 and Suzuki will be supported byCFAO from the second Quarter of 2023. Mazda will announce the new distributor in the coming months.
CMC has formalized a detailed succession plan to ensure a seamless and smooth transition for their current passenger vehicle customers, with aftersales commitments that will extend for the next few months. The company regards customer-centricity as a core pillar and remains committed to working closely with all three brands for the transition.
Commenting on the focus away from the mass-market vehicle segment, Sakib further shared, “In the last few years, we have been confronted with rapid changes in market dynamics owing to the pandemic, production slowdowns and supply-chain disruptions, all of which have impacted the passenger vehicle market, not just in the region but globally. We thoroughly studied the situation and took the decisive step to shift focus. It wasn’t an easy choice for us, as we have been very proud to represent global automotive brands such as Ford, Suzuki, and Mazda, and we will certainly ensure our customers continue to experience high standards of service during the transition to the new partners.”
For over 75 years, CMC Motors Group Limited has been a widely successful and established name in the automotive and agricultural sector, with presence in Kenya, Tanzania, and Uganda.
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