CMC eyes dealer network expansion, sales growth
Auto dealer CMC Holdings has announced plans to grow sales for its line of vehicle franchises by beefing up its distribution channels.
The Nairobi Securities Exchange-listed #ticker:NSE firm Tuesday invited expressions of interest from investors for distributors of its car products and spare parts in the Rift Valley, Eastern, Central and western Kenya regions through a notice in local dailies.
“CMC has opportunities for dealership categories of sales, parts and service,” said the auto dealer in the notice.
“The locations under consideration are Thika, Narok, Kisii, Kericho, Bungoma, Machakos, Nyeri and Meru. We would also be interested in in receiving proposals for dealerships in other major or strategic locations within Kenya.”
CMC has spelt out stringent financial and contractual requirements for the potential distributors.
“Requirements for the dealership include…ability to access suitable premises to operate the dealership that meet premium branding and trade requirements,” said CMC owned by Dubai firm Al Futtaim Group.
Under stiff competition from rivals and a glut of off-lease and used vehicles, new vehicle dealers have been tipped to build more brick-and-mortar stores to attract consumers and enhance their after sale services to grow revenues.
CMC recently lost its exclusive rights to distribute Suzuki vehicles after Toyota Kenya was appointed the second local dealer.
The move has further eroded CMC’s lineup of franchises after it lost dealership of Jaguar Land Rover and Volkswagen to rival Inchcape Plc (the successor of RMA Kenya) and DT Dobie respectively.
Ford remains the most important franchise for CMC, which also sells Mazda cars, Renault trucks, Eicher, UD trucks and New Holland tractors.