NAIROBI, Kenya, Mar 9 – General Motors East Africa (GMEA) is targeting to increase it sales in 2009 by 4.5 percent to an average of 2,905 units.
The revelation was made by GMEA Chief Executive Officer Bill Lay during the launch of the car assembler’s sales caravan which will cover 35 towns within the Mt. Kenya region, Rift Valley, Coast, Western, Eastern and Nairobi area.
“Last year we sold a total 2,780 units locally this year we are forecasting between 2810 and 3000 units,” he said. “The concept behind holding the caravan is personal selling by taking the Isuzu variants physically to potential customers, which has a greater impact than the usual advertising.”
Early last month the vehicle manufacturer said it expects to double its export business in East Africa this year following the decision by Tanzania to grant market access to duty-free vehicles from Kenya.
This came after the East Africa Community reviewed the region\’s rule of origin and reinstated vehicles assembled in East Africa at favoUrable rates; the company would now be able to export vehicles to the whole region.
Generally, vehicles that are 35 percent locally-assembled should access the East African market without paying duty.
This is because the East African Community (EAC) Customs Union protocol which came into force in January 2005, removed internal tariffs on many goods within the EAC.
GMEA adds about 40 percent of value to vehicles such as pickups which have about 60 percent of the spare parts imported from Japan and thus their vehicles qualify to be shipped through the region without paying duty.
