Workers at the AVA motor assembly plant. Toyota has appointed Busmark to begin building its Hino buses at the plant. Photo/Laban Walloga
What you need to know:
Toyota has appointed Busmark, which fabricates bodies for its Hino buses in South Africa, to begin building its Hino buses at the Mombasa-based Associated Vehicle Assemblers (AVA).
The auto giant said it has turned to Busmark because local body builders could not assure the Japanese auto maker on set quality and safety standards.
Toyota Kenya has dealt local body builders a blow after it contracted a South African firm to produce bodies for its buses under the Hino brand due to quality and safety concerns.
The Japanese auto giant has appointed Busmark, which fabricates bodies for its Hino buses in South Africa, to begin building its Hino buses at the Mombasa-based Associated Vehicle Assemblers (AVA).
Toyota said it has turned to Busmark because local body builders could not assure the Japanese auto maker on set quality and safety standards.
“Busmark will help introduce good quality bus bodies that meet stringent South Africa safety features,” said Toyota Kenya managing director Sachio Yotsukura.
“We have received a sample unit and expect to start in August. Busmark has already entered into a technical cooperation agreement with AVA.”
Toyota started local assembly of trucks and buses at the AVA this year to reduce its reliance on the increasingly competitive saloon market and return to top position that it relinquished to General Motors East Africa in 2010.
GM has benefited from increased demand for commercial vehicles while Toyota suffered from increased competition from cheaper second hand cars. Toyota until February was only present in the saloon segment.
Busmark will ship body building parts referred to as completely knock down (CKD) kits to be fabricated at the Mombasa plant.
The move is a big blow to local bus fabricators such as Labh Singh, Dodi Autotech, Banbros, Truck World, Malva, Choda, Highlands and Kenya Vehicle Manufacturers (KVM).
Toyota has since February been relying on the local body builders to feed its Hino buses and trucks. This function will now be transferred to the South African firm.
In South Africa, Busmark is a body builder for major bus firms such as Isuzu, MAN, Volkswagen, UD, Scania, Mercedes Benz and Volvo. The buses and trucks business in Kenya is dominated by established players such as CMC, GM, Simba Colt and DT Dobie who all use local fabricators.
CMC Holdings builds its UD buses at the Thika-based KVM assembly plant. GM and Simba Colt Motors have their approved body builders whom they engage in building body for their Isuzu and Mitsubishi buses respectively.
Toyota is banking on the safety features to capture a bigger portion of Kenya bus market and targets to sell 300 units by the end of March next year. Toyota began local assembly of its trucks and buses in Kenya under the Hino brand in February this year.
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