CFAO Motors will introduce hybrid and electric vehicles as part of a plan to diversify into the green mobility business amid a global shift in the auto industry.
The announcement comes after the seller of Toyota models merged its business with its sister company DT Dobie to increase efficiencies and grow market share.
The two companies have been selling cars, trucks and buses with internal combustion engines –powered by petrol or diesel— for decades.
The transition will see it join other firms including Car and General (C&G) which also plans to start selling electric vehicles and tuk-tuks.
“At the moment, according to the model lineup, we do not have hybrid or electric vehicles. However, we are in the process of bringing some of them in,” said Arvinder Reel, the managing director of the newly merged entity, CFAO Motors.
“In the near future, you will see some of these hybrid vehicles being offered by mostly the Toyota brand and the Mercedes Benz.”
The electric vehicles transition is also part of an expansion plan that will see CFAO Motors launch a new model under the Toyota brand in July and increase its distributorship outlets to 44 from the current 36.
The global shift to electric mobility is expected to impact local motor vehicle dealers and motorists, with scores of automakers and governments announcing they will completely phase out diesel and petrol-powered vehicles by 2040.
Kenya does not manufacture vehicles or motorcycles and only assembles some of the models. This means that dealers and consumers will automatically join the shift to electric transport.
The newly merged entity said it has expanded the local assembly of Landcruiser, Hilux pick-ups, and Hino trucks at Associated Vehicle Assembly (AVA) in Mombasa and the VW Polo, Tiguan, Touareg, T-cross, Mercedes truck and buses and Hyundai trucks at Kenya Vehicle Manufacturers (KVM) based in Thika.
CFAO Motors Kenya now owns DT Dobie’s 32.5 percent stake in KVM where CMC Holdings and the government have a 32.5 per cent and 35 percent stake respectively.
