Portuguese firm injects Sh0.35b into local automotive industry
Steve Umidha @UmidhaSteve
Portuguese multinational Salvador Caetano Group has announced an investment of Sh350 million into the local automotive industry, with the launch of a one-stop auto hub.
It said the showroom is expected to be a choice end point for motorists keen on Hyundai and Renault brands.
The firm will also distribute and retail of new vehicles as well as after sales services including vehicle care, spare parts and accessory sales.
Salvador Caetano Group is the sole distributor and retailer of Hyundai and Renault Passenger vehicles in the market.
In addition to passenger vehicles, it also retails the 1.5-tonne Hyundai H-100, which is a versatile and dynamic flatbed truck.
“Our Automotive hub is a one-stop shop designed for quality, reliability and convenience,” it added.
The announcement comes amid concerns in the vehicle industry on low demand since Covid-19 outbreak.
Sales of new motor vehicles fell 26 per cent in the first half ended June, with Isuzu East Africa and Toyota Kenya being the only major automakers that have somewhat weathered the downward sales trend since March.
The downward trend Toyota Kenya Managing Director Arvinder Reel said will continue into the year 2021 at the earliest, with motor vehicle dealers among the businesses registering subdued demand in the economy ravaged by coronavirus pandemic and tighter credit markets.