Boost for local car market

Kheng Keng Auto sales director Mr Leo Tan was in Harare together with Mr Dave H, the marketing executive of Denyo Auto Parts, the Singaporean automobile dealer’s Malaysian partner, for discussions with the identified local partners.

The Singaporean used vehicles dealer last year entered into a partnership with local private company, Knee Deep Investments, to serve as the distributor of its vehicles in Zimbabwe.

Knee Deep, trading under the name MAG Auto, would sell vehicles at much lower prices, as it would get supplies direct from Singapore without use of middle- men, that adds costs.

Knee Deep would be supplied with a range of vehicles, spares and engines supported by a workshop, resulting in a one-stop shop.
Kheng Keng plan to establish a school to train local mechanics on servicing the vehicles it would export to Zimbabwe in what would be a major differentiating factor to the prevailing situation.

Mr Tan, who met local partner Knee Deep Investments director Mr Robson Maganizi, said that Kheng Keng Auto would work with the identified local distribution agent to roll out in phases their plans to enter the market for used vehicles.

“The reason we have looked for a local partner in Africa is because we want to expand our product because we are strong in supplying and they have strong demand for the products.

“So we will get the vehicles direct from the owner and we give them so that they can sell at a much cheaper price,” said Mr Tan.
He said while all sorts of vehicles were being imported from Japan and the UK there was no dedicated after sales services and supplies of spares for the vehicle models being imported into Zimbabwe.

As such, Kheng Keng Auto would send its technicians to train locals on how to service the vehicles the Singaporean firm would supply, including all the diagnostic equipment needed for that.

“Like I said, we will get the cars direct from the source and our local partners will get them direct from us, as such it will bring down significantly the cost of cars in Zimbabwe,” Mr Tan said.

Kheng Keng Auto and Knee Deep Investments expect to start importing vehicles into Zimbabwe within the next four to six months, but on a trial run with a limited number of selected models.

“It is all about market survey, we have done a survey and we know what the taste is for our local market. We know that our market has low class, middle class and high class. There are people seeking to buy cars for the first time and so there is an entry level for first timers. There also is people who are already driving and want to upgrade to another level, that segment will be well catered for,” said Mr Maganizi.

“In terms of savings, like (Mr Tan) said it is direct to direct buying, there is saving, that saving is what we want to pass on to customers and if you save US$400 to US$500 that is a huge amount considering our standards here,” Mr Maganizi added.