Inchcape Kenya has acquired the BMW car dealership, a move that has seen Simba Corporation lose the franchise according to the Business Daily. The news comes after Inchcape Kenya became the official distributor of Jaguar Land Rover in August this year replacing RMA Motors.
Business Daily reported that sources knowledgeable with the matter said BMW AG notified Bavaria Auto of its intention to make Inchcape its franchise distributor. Bavaria Auto is the subsidiary that Simba Corp uses to sell luxury cars. The subsidiary has been selling BMW cars since 2008 after taking over from Mashariki Motors.
“Inchcape is taking over the BMW dealership from Bavaria. An announcement to this effect will be made soon,” the source said adding that BMW is implementing on a strategy where it works with a few dealers who can sell in several markets.
Inchcape will sell the BMW cars in over eight markets including Kenya, Tanzania, and Uganda. Additionally, the automotive distributor is expected to make a formal statement regarding the issue in the next few weeks.
Inchcape now has the largest market for luxury cars in the country ahead of DT Dobie which sells Mercedes and Porsche brands.
The former RMA Motors Kenya chief executive Sanjiv Shah is now the head of Inchcape Kenya and Uganda.
Inchcape Acquires RMA Motors’ Business and Assets
In a gazetted notice dated September 14, 2018, the Competition Authority of Kenya has authorised the acquisition of RMA’s business and assets.
“Pursuant to the provisions of section 46 (6) of the Competition Act, 2010, it is notified for general information that in exercise of the powers conferred upon the Competition Authority by section 46 (6) (a) (ii) of the Competition Act, the Competition Authority has authorized the proposed transaction as set out herein,” the notice reads.
In the half-year ended June, BMW, and Jaguar Land Rover sales stood at 74 units out of the 137 units sold in the industry.
