Leading motor company, CMC Motors bets on local assembling for heavy commercial vehicle in a bid to support buy Kenya, build Kenya initiative.
Speaking during CMC Motors Open Day, the Group Chief Executive Officer Mark Kass said there is a need for customers and government to support local assembling in order to create more jobs.
Mr. Kass further announced the company has plans to expand its assembling unit.
“In the next three years we want 75% of all our Heavy Commercial Vehicles to be locally assembled. This will not only bring prosperity and create employment opportunities for Kenyans, but also build confidence in Kenyan made products” explained Mr. Kass.
The move ties in well with governments agenda to encourage motor vehicle assembling, support growth of backward and forward industries, boost secondary market of vehicles and generate additional employment opportunities.
Currently, CMC motors have an assembly ground in Thika which is thirdly owned with the Kenyan Government.
In pricing, CMC will benefit from tax incentives on import of completely knocked down units (CKD) — the parts needed to assemble a vehicle — which are zero-rated in Kenya as opposed to a 20 per cent import duty on vehicle imports.
During the same event Mr. Kass, noted the need to encourage more people to purchase new vehicles by developing a value chain that that will grow the young customers and migrate them to new vehicles.
“We have signed MoU, with banks, which will go a long way in assisting our customers to purchase or lease vehicles. These institutions will offer innovative schemes that will focus on deposit creation and special interest rates” added Mr. Kass.
The event was organized with the aim of accelerating the company’s business growth strategy of increasing its market share from 10% to 15% within two years.
Mr. Kass added the banking partners are well positioned to provide full range of products to cater for the growing needs of our customers.
“With a wealth of expertise and extensive knowledge of the local market, they are well placed to offer a wide range of asset financing solutions aimed at meeting the needs of our customers,” he explained.