Companies

GM dealer in Sh500m body building venture

RITA

Ms Rita Kavashe, the managing director, General Motors East Africa. PHOTO | FILE

A General Motors East Africa (GMEA) dealer is set to build a showroom, service workshop, and body building facility for the car firm’s Isuzu and Chevrolet makes along Mombasa Road at a cost of Sh500 million.

Kenya Coach Industries (KCI) plans to break ground for the complex Tuesday, marking yet another investment by a GMEA dealer.

Unlike other local car dealing firms that directly own and manage their workshops, sales and service networks, GMEA relies heavily on independent dealers including KCI, Thika Motor Dealer, and Central Farmers Garage.

The new facility signals increased investments in the competitive new-vehicles market where quality and wide dealership networks are critical in winning customers and confidence of vehicle manufacturers.

Urysia, the Peugeot dealer, is expanding its showroom and service centre along Nairobi’s Bunyala Road.

The new holder of the Nissan franchise in Kenya is also set to invest over $15 million (Sh1.3 billion) in its branch network, inventory and service centres in a race to grow its market share in the new vehicles market.

Crown Motors —which in August replaced DT Dobie as the local Nissan dealer— says it will open a branch in Mombasa, Kisumu, Eldoret and Naivasha in the near term.

This will add to its service centre along Mombasa Road and main showroom in Nairobi along Uhuru Highway where it launched operations.

The company also plans to hire sub-dealers in other towns. The upcoming facility by KCI comes at a time when GMEA has expanded its product line-up including the recent launch of the SUV Chevrolet Trailblazer.

The company, which has the second largest market share of 26 per cent in the country, has Isuzu commercial vehicle vehicles as its fastest-selling units.

KCI, a sister company of body building firm Labh Singh Harnam Singh (LSHS), has been a GMEA dealer in Nairobi region since 1990.