From Left; Isuzu East Africa Managing Director Rita Kavashe, chairman Hiroshi Hisatomi and UD Trucks President Hedna Mourad after signing a distributorship deal on March 05, 2024, at Isuzu East Africa company in Nairobi. PHOTO | BILLY OGADA | NMG
Isuzu East Africa has won the rights to distribute UD trucks in the Kenyan market, taking over the franchise from CMC Motors Group, which exited the sale of motor vehicles to focus on agricultural equipment.
The move will see Isuzu become a multi-brand dealer once again, building on its namesake buses, trucks and pick-ups through which it has taken a 46.96 percent overall market share in the new vehicle market.
Isuzu previously also sold Chevrolet cars but a 2017 deal that saw General Motors sell its 57.7 percent stake in the dealer to Japan’s Isuzu Motors Limited closed out the American franchise agreement.
Isuzu says the sales of UD trucks will start in the second half of this year, a move that is set to lift its sales going forward.
“We understand commercial vehicles and their applications being a key player in the industry,” the company’s chief executive Rita Kavashe said.
“Isuzu East Africa is also a strong and trusted automotive distributor in the region and has been the overall market leader for 12 consecutive years. This offers UD customers assurance of the support they will receive from Isuzu East Africa.”
The company says it targets to sell 116 units of UD trucks, formerly known as Nissan Diesel, by the end of the year. Data from the Kenya Motor Industry Association (KMIA) shows that CMC’s sales of the Japanese UD trucks and buses reached highs of 567 units in 2009, indicating the potential of the brand’s re-entry under Isuzu.
Sales of the models subsequently declined over the years as CMC went through a corporate governance crisis, an ownership change and the company eventually made a decision to stop selling vehicles in favour of tractors and other agricultural equipment.
Those interested in the UD trucks have had to buy them from overseas markets in recent years.
Isuzu says the UD trucks distributorship will strengthen its presence in the heavy commercial segment through Quester and Croner models which are popular for general cargo, long haul, construction and urban delivery applications.
The UD trucks will be assembled under contract at the Thika-based Kenya Vehicle Manufacturers (KVM) which is owned by the government with a 35 percent stake, CFAO Motors (32.5 percent) and CMC (32.5 percent).
Isuzu’s Nairobi plant will continue to assemble its namesake models exclusively. The dealer will start selling the UD trucks in Nairobi and Mombasa as the main hubs, with the potential for an expansion of the distribution network in the future.
Isuzu says it will offer immediate aftersales support to existing UD trucks customers. Its rivals in the trucks business include CFAO Motors (holding the Mercedes prime mover franchise), Simba Corp (Mitsubishi trucks) and Tata Africa (Tata trucks).
Isuzu says it closed 2023 with a leading market share of 60 percent in the commercial vehicles segment which includes pick-ups.
