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Toyota diversifies to tyres for new revenue streams

Toyota Kenya showroom along Mombasa Road
Toyota Kenya showroom along Mombasa Road. FILE PHOTO | NMG 

Motor dealer Toyota Kenya has commenced the distribution of Michelin brand tyres across its service stations.

This comes three months after the car distributor’s local parent firm CFAO and Michelin was given the go-ahead by Competition Authority of Kenya (CAK) to form a joint venture to sell tyres locally and in Uganda.

The Joint venture dubbed “Tyre Distributor Africa Limited” (Tydia) will supply tyres to the 31 Toyota branches, dealers and service centers found across the country. This came up during the launch of the Sh15 million Westlands tyre center- as the car distributor branches out to grow its revenue streams.

Locally service providers such as AutoXpress and Kingway Tyres, dominate the local tyre business.

“Over the years our core business been vehicle maintenance and repair and supply of parts, with tyre services being offered by other players in the market. However in ensuring our customers get a wholesome one-stop-shop in vehicle care, Toyota Kenya with the support of Tydia will manage the distribution of Michelin premium quality tyres through our 31 service centers,” said Toyota Kenya Managing Director, Arvinder Singh Reel.

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“Tydia’s main function is the importation and distribution of Michelin and BF Goodrich tyres to our customers in Kenya. Through our partnership we have a potential to support more than 5,000 customers who monthly visit our service centers across the country.”

To grow this new arm of business, Toyota Kenya said, it will open additional tyre centres across the country in the coming months as it gears towards providing all-inclusive after-sale services to its customers.

“The tyre centres are meant to help Toyota to deliver complete service packages to our customers,” said Mr Reel.

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