CMC Motors Group has entered into partnership with French automotive manufacturer Renault Trucks to expand its footprint within the heavy commercial truck segment, to meet growing demand across the East African Region.
According to Renault Trucks Africa Vice President, Cyril Barille, East Africa is one of the fastest growing regions, a factor that has contributed to increased demand for logistics services and equipment.
“East African economies continue to grow creating demand for heavy commercial vehicles. This demand is driven by the end-to-end logistics for industries, retail and agricultural production. Additional demand has come from the construction industry with governments investing in the development of trunk infrastructure such as roads, water and sewerage as well as electricity. Aside from governments, the private sector continues to invest in the development of real estate and the emerging mining sector. Kenya also acts as the regional hub for East and Central Africa, due to its strategic location.” Cyril Barille added.
The French brand’s ambitions matched perfectly with CMC Motors’ long team goals. CMC which recently celebrated70 years of operations across East Africa and is looking to tap into the heavy commercial vehicle segment as part of its product expansion strategy. Under the new partnership Renault will beneficiate from CMC’s regional footprint and network, with over 8 branches across Kenya, and a central warehouse in Nairobi.
According to Noel Mabuma, CMC Motors CEO, the entry of Renault trucks into the market will enhance its offering within the heavy commercial vehicle segment to meet increasing demand from both existing and emerging industries.
“There has been a spike in demand for heavy commercial vehicles with governments and the private sector undertaking various infrastructure-based projects. The government of Kenya in particular has changed its financing and acquisition models with adoption of leasing as the key means of acquisition. This has created interest from both financial service providers and logistics firms looking to supply the government and other contractors with equipment” Mr. Mabuma said.
CMC Motors, which is part of the Al Futtaim Group, will utilize its regional reach to promote Renault Trucks activities. A regional training center will be opened in Nairobi, repositioning Kenya as the regional Hub for the South East Africa region enabling the upskilling and supporting competence development.
Though the vehicles are of French origin, they will be assembled locally under a partnership between CMC Motors and Kenya Vehicle Manufacturers (KVM). The plant will create over 200 new jobs with additional opportunities set to be generated across the value chain.
Renault Trucks has a presence in over 100 countries offering commercial vehicle users a variety of innovative services and vehicles (from 2.8 to 120 T) adapted to a wide range of transport activities ranging from distribution, construction, heavy construction and long distance. As part of the AB Volvo Group, Renault Trucks are unrivaled within the European Truck Segment offering sturdy and reliable low fuel consumption vehicles, personalized maintenance and spare parts availability, enabling customers to enjoy greater productivity and control operating costs. In Africa, Renault Trucks have been deployed within the West African mining industry and across Central Africa’s logging industry.