A Renault Kleos SUV. Simba Corporation — the Kenyan reseller of BMW cars and Mitsubishi trucks — has taken over the Renault vehicles franchise from DT Dobie. Photo/FILE
What you need to know:
The takeover of the Renault dealership is set to boost Simba’s auto dealership business, with the company emerging as a major beneficiary of shifting ground in the industry.
Simba will start selling Renault saloon cars immediately through a separate dealership in which it has an undisclosed stake in partnership with a foreign investor.
The change in ownership of DT Dobie last year has seen it relinquish dealership rights for the Renault and Nissan brands in the Kenyan market.
Simba Corporation — the Kenyan reseller of BMW cars and Mitsubishi trucks — has taken over the Renault vehicles franchise from DT Dobie.
The change in ownership of DT Dobie last year has seen it relinquish dealership rights for the Renault and Nissan brands in the Kenyan market.
The franchise owners –Renault-Nissan Alliance (RNA) — are yet to appoint the next Nissan dealer in the Kenyan market.
“We now have the Renault dealership,” said Adil Popat, Simba’s chief executive.
Simba will start selling Renault saloon cars immediately through a separate dealership in which it has an undisclosed stake in partnership with a foreign investor.
“We have just concluded a joint venture deal to this end. We’ll announce the details later,” he added.
Major beneficiary
The takeover of the Renault dealership is set to boost Simba’s auto dealership business, with the company emerging as a major beneficiary of shifting ground in the industry.
DT Dobie lost the Nissan and Renault brands after it was acquired together with CICA Motors in December 2012 by Toyota as part of a Sh274.4 billion Pan-African deal involving their parent firm CFAO.
It is this deal that spooked RNA, prompting it to terminate its distributorship agreements with DT Dobie and start a search for new partners.
Simba acquired the BMW franchise from Mashariki Motors in 2008 and the Mahindra dealership from the Ecta Group of companies in 2012.
It has also signed an agreement to sell Geely cars in the local market, with the Renault dealership raising its vehicle brands to six.
DT Dobie last year sold 27 units of Renault saloon cars and Simba is seeking to grow sales of the French brand that is relatively new in the Kenyan market.
The deal will give Simba a presence in the competitive passenger vehicles market dominated by Toyota Kenya.
The existing dealership networks have helped local firms win the joint ventures with the foreign partners who would otherwise have to start operations from scratch.
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