CMC Motors Group has announced its decision to gradually wind down operations in Kenya, Tanzania, and Uganda.
This move comes after a detailed evaluation of the company’s business amidst persistent market challenges, including economic pressures, currency depreciation, and rising operational costs.
Challenges in the market
The company’s decision follows years of attempts to adapt to East Africa’s evolving economic landscape.
CMC Motors initiated a restructuring programme in 2023 in a bid to sustain its operations. However, market conditions proved insurmountable.
Despite our transformation efforts, the challenges in the market have made it difficult to establish a sustainable path forward.
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The impact of these pressures has been particularly acute in the automotive and mechanisation sectors, where CMC Motors had been a key player for over four decades.
Commitment to employees and customers
CMC Motors has emphasised its commitment to ensuring a smooth transition for its employees, customers, and stakeholders during the wind-down process.
We are dedicated to supporting our employees and adhering to all local regulations and distributorship agreements as we conclude our operations
The company’s contribution to East Africa’s agricultural and automotive sectors over the years has been substantial.
A business spanning over 40 years
Since its acquisition by the Al-Futtaim Group in 2014, CMC Motors Group has been part of a broader portfolio under CMC Holdings Ltd, which includes other subsidiaries such as Cooper Motor Corporation (Uganda) Ltd and Hughes Motors (Tanzania) Ltd.
It also holds a 33% shareholding in Kenya Vehicle Manufacturers Ltd.
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While the announcement marks the end of an era for CMC Motors in East Africa, the company assured stakeholders that it will prioritise compliance and transparency throughout the wind-down process.