Indian automobiles are gaining popularity in the Kenyan markets, beating stiff competition from small Korean-made vehicles.
Maruti has the single-largest Indian presence on Kenyan roads. A beginning has been made by the Maruti Gypsy in the safari sector. The Omni is the most popular of Maruti models with nearly 35 sold up to April in 1997. Twenty Gypsys and 24 Maruti 800s have also entered the market between January and April this year, according to statistics from the Kenyan motor industry.
Kenyan President Daniel Arap Moi last week received from some British and Irish charities a donation of six ambulances, all of them converted Indian Mahindra jeeps.
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The Mahindra jeep has made a real impact here ever since Kenya's police department purchased nearly 300 of the rugged vehicles three years ago in preference to Korean cars. The Mahindra jeep is also widely used by those who require a reasonably priced four-wheel drive vehicle.
One reason for Maruti's success is that its promoters have positioned its models in the small saloon and wagon section where the only competition it has is from some models of the Daihatsu and Opel. There are no Indian automobiles in the large and medium saloon car categories.
Other major players in the automobile sector are the Tatas and Eicher. Tatas have sold about 30 trucks in the first quarter of 1997 while Eicher is repositioning itself after a successful start two years ago which has petered out. Swaraj Mazda and Ashok Leyland are also big players with Bajaj tempo and auto rickshaws making some breakthrough as well.
The Kenyan automobile sector on the whole is dominated by Japanese and European manufacturers who have a traditional stronghold in the truck and car segments. Isuzu, Mitsubishi, Peugeot and Nissan have held large market shares in segments like large trucks and medium salooons.
Korean manufacturers have made a strong showing in 1997 and increased their stakes in the market through a wide dealer network and frequent advertising. Recognising the challenge from second hand cars that have flooded the market, Koreans are keeping their prices competitive.
The Tatas have been slow starters in Kenya. Though they have been selling large buses, their strength appears to be in the light trucks -- three to nine tonnes -- segment with some sales also made in the medium-size truck market for vehicles weighing up to 19 tonnes. Their major competition is from Japanese truck makers whose models are much more expensive.
The state of Kenyan roads, said an automobile dealer, is a handicap for lighter vehicles made in India. European and Japanese brands, known to be rugged, take the wear and tear of Kenyan roads better.
A successful entry into the Kenyan automobile market often works as a launchpad to other African nations. People often drive from the port of Mombasa in this country to the hinterland of Uganda, Zaire, Rwanda and Burundi with some roads leading through Tanzania to Zambia.
A company that can set up servicing facilites across the East African region is therefore guaranteed success. Brand loyalty is determined by ground realities which support the existing brands of trucks over lighter newcomers.
An automobile dealer said Indian manufacturers need to create their own niche in the African car market. At present they are being marketed merely as cheaper alternatives for people who do not want to spend too much on cars.
If Indian car makers can establish a good servicing network across East Africa, where cars used in Kenya dictate the norm, they can make a lasting impact on this continent, the dealer said.
India Abroad News Service