Chinese auto firm changes sales strategy

Foton Managing Director Apple Sun

Chinese automaker Beiqi Foton Motors is banking on its new business model to clinch back its Kenyan market share after it fell out with its local dealers three years ago.

The automaker made a comeback in the Kenyan market early this year, opting to directly take charge of its business in the country.

This is through local representative Foton Motors Kenya after a partnership with its first distributor, Foton East Africa, went awry following a legal tussle with Kenya Revenue Authority over tax arrears and piling debts.

The firm, which first set up shop in the country in 2011, was forced out of the Kenyan market amid huge debts after it failed to secure a sizeable market share as it contended with stiff competition from other Chinese brands such as Grand Tiger, Chery, JMC and Sinotruck.

But Foton Motors Kenya Managing Director Apple Sun (pictured) now says the firm has learned its lesson and is optimistic the new business model will put it back in the driver’s seat as it seeks a foothold in the competitive auto market.

“We are currently operating the business ourselves as Foton Motors Kenya Ltd without any contract with the former dealers,” he said in a recent interview.