Regional automobile company CMC Motors Group has announced plans to exit Uganda and all East African countries.
In a statement on Friday, CMC said its decision to gradually wind down operations in Kenya, Tanzania, and Uganda is in full compliance with local regulations and distributorship agreements.
“This decision follows a thorough evaluation of the business in light of sustained market challenges, including economic pressures, currency depreciation, and rising operational costs, “CMC said .
The company said over the past 40 years, it has played a vital role in supporting East Africa’s agricultural sector through the delivery of quality service, mechanization solutions, and steadfast support to its customers.
However, despite restructuring efforts and a transformation program initiated in 2023, the market conditions have not provided a sustainable path forward.
“The company is committed to supporting its employees during this transition and will ensure a smooth and orderly wind-down in adherence to all relevant agreements and regulations.”
CMC Motors Group Ltd is owned by CMC Holdings Ltd and was acquired by the Al-Futtaim Group in 2014.
Other trading subsidiaries owned by CMC Holdings Ltd include Cooper Motor Corporation (Uganda) Ltd. Hughes Motors (Tanzania) Ltd. Kenya Vehicle Manufacturers Ltd (33% Shareholding).
A few years ago, CMC exited the distribution of some of vehicle brands including Ford, Suzuki and Mazda.
In Uganda, CFAO Motors, formerly Toyota has since taken over the distribution of Suzuki vehicles and they are performing well in this line.
On the other side, Motorcare has taken up the distribution of Ford vehicles.
In 2023, CMC Motors Group announced a major shift in its business strategy that would see it invest and refocus growth efforts towards the mechanization of agriculture.
