Shanghai, April 1 (Gasgoo.com) The launch of a new brand from China is set to make competition fiercer in the heavy trucks market in Kenya. Manufactured by Chinese auto maker Sinotruck, the vehicle offers Kenyan transporters a competitively priced truck in the fast growing commercial segment of the auto market in the African country.
The Chinese heavy truck will be sold by the Africa China Motor Group (ACMG), which is incorporated in Kenya by the brand owners. Mr. Imran Khan, ACGM's managing director, said the company hopes to sell 500 units this year. He described the launch of the truck as the first step in putting more of the ACMG products in the regional market.
The vehicles will be selling at prices between Sh4.5 million (US$71,400) and Sh4.8 million. Most of the 200 or so Sinotruks now running on Kenyan roads are directly imported from China. Nairobi will serve as ACMG’s regional office for East and Central Africa as well as Southern Sudan. The company is seeking local partners to increase its sale points.
ACGM won the exclusive rights to sell Sinotruck vehicles last year and has invested over Sh300 million in the venture. The company will invest another Sh189 million in a new showroom on Mombasa Road.
After the new Chinese heavy truck is launched in the Kenyan market, competition is expected to be increased in a segment of the motor industry, where sales have been growing steadily since 2005.