Simba Corporation has cut the price of its 25 new BMW cars by millions of shillings as it prepares to hand over the German car franchise to rival Inchcape Plc.
The company, through its subsidiary Bavaria Auto, is now selling the BMW models at a discount ranging from Sh2.2 million to Sh3.9 million apiece.
The price cuts will soon be extended to Simba’s overall vehicles portfolio including Mitsubishi trucks next month in what the company says is a move to reward its customers.
“We are celebrating 50 years and we will have a grand sale that will feature discounts of Sh50 million in total,” said Dinesh Kotecha, Simba’s chief executive officer.
The company, for instance, has reduced the price of the BMW X6 to Sh10 million from the previous Sh14 million while that of BMW 530i dropped to Sh9.7 million from Sh11.9 million. The price of BMW320i GT has been cut to Sh7.1 million from Sh9.7 million.
RMA Kenya offered similar discounts to clear its stock ahead of the sale of the Jaguar Land Rover (JLR) dealership to Inchcape Plc.
Munich-based BMW AG decided to transfer its BMW dealership in Kenya from Simba to Inchcape after the automaker reviewed its global distribution strategy aimed at working with a few dealers who take control of sales in multiple markets.
Inchcape is expected to sell BMWs in nine markets in the region including Kenya, Uganda and Tanzania.
The change in BMW’s local dealership continues the musical chairs seen in Kenya’s new vehicle market where automakers are constantly reviewing their existing franchisees.
The churn, for instance, saw DT Dobie take over the Volkswagen dealership from CMC, DT Dobie lose Nissan franchise to Crown Motors and General Motors terminate Isuzu East Africa’s sale of Chevrolet cars.
Bavaria has been selling BMW cars since 2008 when it took over the franchise from Mashariki Motors.
For Inchcape, the takeover of BMW marks a rapid expansion in the local market, having bought out the JLR franchise from RMA Group in June.