GM invests Sh100m to upgrade assembly plant

Auto dealer General Motors East Africa has invested Sh100 million to upgrade its Nairobi assembly plant amid rising demand for its vehicles.

The company’s managing director Rita Kavashe said the upgrade has increased efficiency and capacity at the plant where it assembles Isuzu brand of buses, pick-ups, and trucks.

GMEA’s assembly plant produces the largest number of vehicles in the country ahead of Thika-based Kenya Vehicle Manufacturer (KVM) and Mombasa-based Associated Vehicle Assemblers.

The company sold 3,421 units last year to widen its lead over top rival Toyota East Africa.

Data from Kenya Motor Industry Association (KMI) -- the industry lobby -- show that GMEA market share increased to 27 per cent last year from 25 per cent in 2011 in a period that saw Toyota's stake remain at 24 per cent.

The change in market structure has been attributed to a greater demand for commercial and public transport vehicles, which is General Motors forte, compared to saloon cars which are mostly sold Toyota. Toyota will however star selling Hino brand of trucks from next month to cut its reliance on the saloon car market.