By John Oyuke

Indian automotive manufacturers are angling for a slice of the local motor market in a move that will heighten rivalry in the sector.

Indian carmaker Mahindra and Mahindra Ltd has re-entered the local market more than a decade after a badly handled business deal compromised its image, and forced its exit in the 1990s, joining another automotive giant Tata Motors.

Last week, Tata Africa Holdings Kenya announced it would distribute John Deere products in Kenya with plans to start assembling them at its Nairobi assembly plant by end of this year. It also plans to use the country as a springboard to the rest of East Africa.

Tata will also be assembling tractors and other agricultural equipment by John Deere as opposed to the importation of complete products.

big blow

Other recent arrivals in the local market are Chinese companies Foton and First Automobile Works, which are lining light minivans , cars, heavy-duty trucks and buses for Kenyan and regional market.

Mahindra and Mahindra Ltd has partnered with Simba Corporation’s new division — Xylon Motors Limited — to distribute a number of its new models, including pick-up brands, and the Mahindra XUV 500, a sports utility vehicle.

Speaking during the relaunch of Mahindra in to the local market, Africa and Middle East General Manager, Mr Sanjay Jadhav, said the firm is restructuring its operations in Africa where it has high hopes of economic growth, adding that it will open more motor assembling plants on the continent.

“We are not blind to the tremendous growth in Africa, and we want to take advantage of the full opportunities to grow our markets,” he said.

Jadhav said Kenya’s financial markets had grown tremendously with the coming of more international banks, a signal that the economy was doing well.

Simba Executive Director, Mr Dinesh Kotecha, said the dealership will offer full range of Mahindra vehicles and an after sales department.

This, he said, would enable the firm currently selling tractors through Timsales Ltd to consolidate presence in the country.

 “The new partnership with Simba Corporation assures the market that Mahindra vehicles are of high quality and dependable,” he said.