Just three months after its mother company CFAO received approval from the Competition Authority of Kenya (CAK) to sell premium Michelin tyres in Kenya and Uganda, Toyota Kenya has started distributing the tyres.
The joint partnership dubbed “Tyre Distributor Africa Limited” (Tydia) will see all 31 Toyota branches, dealers and service centers across the country receive a wide array of Michelin tyres including heavy goods vehicle, two-wheel, civil engineering and agricultural tyres.
The centers will then distribute them to local consumers. The deal will also see TCFAO acquire a 51 per cent stake in the venture while Michelin will control the remaining 49 per cent with authority equally shared between the two firms.
“Over the years our core business has been vehicle maintenance and repair and supply of parts, with tyre services being offered by other players in the market. However in ensuring our customers get a wholesome one-stop-shop in vehicle care, Toyota Kenya with the support of Tydia will manage the distribution of Michelin premium quality tyres through our 31 service centers,” said Toyota’s local Managing Director, Arvinder Singh Reel in a statement.
“Tydia’s main function is the importation and distribution of Michelin and BF Goodrich tyres to our customers in Kenya. Through our partnership we have a potential to support more than 5,000 customers who monthly visit our service centers across the country,” Mr. Reel added.
Mr. Reel similarly revealed that Toyota would introduce more service centers in future in order to further grow the tyre distribution business.
“The tyre centres are meant to help Toyota to deliver complete service packages to our customers,” said Mr Reel.
The move by Toyota is anticipated to break the dominance of AutoXpress and Kingsway Tyres who in recent years have proven major players in the tyre distribution sector.