Toyota to start 33-seater bus assembly line

Japanese car manufacturer Toyota will start assembling 33-seater buses in Kenya in what seems to be a direct challenge to established players in the segment.

The automaker said it intends to roll out the assembly process by October to take advantage of the government’s move to gradually phase out 14-seater matatus in major towns.

“Since introducing the 51-seater buses, the reception has been good. We think it is time to enter the 33-seater division,” said a senior manager at Toyota East Africa, who did not want to be named before the official launch.

He said the firm would ride on Toyata’s rich global heritage to challenge the status quo in the 33-seater bus segment.

PIONEER AFRICAN MARKET

In January 2013, the firm started assembling its own line of trucks and 51-seater buses under the Hino brand at its Mombasa-based Associated Vehicle Assembly plant.

Hino is a Tokyo-based commercial vehicle subsidiary of Toyota Motor Corporation, and Kenya is its pioneer African market.
Statistics show that the automaker has since started reaping the benefits of venturing into the heavy commercial segment.

Data from the Kenya Motor Industry Association shows that Toyota led in the first six months of 2014 with a 32 per cent market share, up from 21 per cent last year.

General Motors East Africa (GMEA) was pushed to second place as its market share remained flat at 25 per cent.

Toyota had lost the market share to GMEA in 2011 following the government’s plan to phase out 14-seater matatus, resulting in a strong demand for buses in the public transport sector, where Toyota was not a player.

Apart from GMEA, other players in the bus business are CMC Motors, Simba Colt and DT Dobie.