London-based luxury car dealer Inchcape Plc is set to take over the Jaguar Land Rover (JLR) dealership in Kenya after buying out the operation from RMA Group, which has exited the local market.
JLR and Inchcape reached the dealership agreement in recent weeks, with a formal announcement expected to be made soon, sources familiar with the matter said. Regional executives of JLR declined to comment on the matter.
"JLR is not in a position to comment at the moment. At the appropriate time JLR will make a formal announcement of its new partner," said the JLR sub-Saharan Africa sales director Nigel Clarke in a telephone interview.
RMA is exiting the Kenyan market after five years, having taken over the JLR franchise from CMC Holdings in 2013.
Inchcape, which already sells JLR brands in the UK, will inherit the most valuable and one of the fastest-selling portfolios of luxury cars in Kenya including Ranger Rover and Jaguar models.
Vehicle brands
The UK multinational sells several vehicle brands including Mercedes Benz, Toyota, Audi and BMW in 31 countries.
Kenya will become Inchcape's second market in Africa after Ethiopia where it currently deals in several brands including Toyota and Hino.
The conglomerate, which is owned by institutional investors such as Standard Life, BlackRock, Vanguard and Aberdeen Asset Investments Ltd, had sales of £8.9 billion (Sh1.1 trillion) in the year ended December 2017.
Sales of new luxury cars in Kenya rose nearly five per cent in the first quarter ended March, helped by increased demand for Porsche models.
