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Automotive company CFAO Mobility buys off tyre distributor TYDIA

Leading Kenyan automotive industry key player CFAO Mobility projects limited growth in the current financial year, with the government’s low commitment being a key contributor.

The company recently acquired the 100 per cent shares of Tyre Distribution Africa Ltd (TYDIA), as it seeks to establish a significant footprint in the country.

However, it says it’s limited by late payment by the government, its biggest new car buyer.

Talking to the media during the announcement of the acquisition of TYDIA on Friday, CFAO Mobility Managing Director Arvinder Reel said the company is not looking forward to an exponential growth despite the expansion, noting that their outlook for this year will be more or less the same as last year.

“One of the key challenges is that the government purchases have actually reduced. The payments from the government are very, very slow. We’re not receiving the payments from the government on time.  And this is really hurting the business,” he said.

He added, “If the government starts paying, we can actually see some improvements coming, but if that doesn’t happen, then the sales will pretty much be on a slow run this year.”

In 2024, Arvinder said, the company achieved a 33 per cent market share, which he termed as “significant” as it came at a critical economic period.

CFAO recorded a notable performance in its operations reporting total sales of 3,000 vehicles and 30,000 marked tyres.

“However, we are looking forward to increasing our footprint so that we can actually sell more, especially on our Hyacinths and our Land Cruiser pickups,” said Arvinder.

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