Global auto maker Scania will on Thursday launch its offices in Kenya giving it control of its marketing and distribution business in East Africa.
The Swedish manufacturer of heavy trucks and buses has been supplying automotives to Kenya, Uganda, Rwanda and Burundi through Kenya Grange Vehicle Industries.
Scania, which has presence in more than 100 countries, is now looking to set up its regional base in Kenya in what will pile pressure on other European makers like Mercedes, Volvo, Euro Tracker and Renault.
“Scania representatives will outline the company’s current and future investment plans for Kenya and the wider East Africa region,” said the company in a statement.
The move will pit Scania against General Motors East Africa, which currently commands the biggest portion of the market from its flagship Isuzu trucks and buses.
Competition with other established players such as CMC (Ford pick-ups and Nissan Diesel trucks), and DT Dobie (Nissan pick-ups, Mercedes cars and trucks) is also set to increase.
The franchise deal will be severed with opening of the new office.