Serrari Group

Kaiho Industry Co. Launches Bid to Capture Kenyan Automotive Spare Parts Market

Japanese trading firm Kaiho Industry Co. Limited has initiated operations in Kenya, targeting the wholesale and retail sectors of the automotive spare parts market. The company’s debut auction in Nairobi signals its strategic entry into the region’s burgeoning used automotive spare parts and accessories segment.

African Business Consultant for Kaiho, Lucy Koyama, highlighted the company’s objective to streamline spare parts accessibility within Kenya, eliminating the need for customers to source parts from Japan. The bi-monthly auctions offer a wide array of spare parts and accessories, facilitating transactions via mobile money platforms and settling payments in Kenyan shillings.

In a bid to foster inclusivity, Kaiho encourages participation from both large wholesalers and individual buyers. Local automotive parts dealers have welcomed this initiative as a means to streamline procurement processes and reduce dependency on imports.

With a focus on responsiveness to market dynamics, Kaiho intends to adjust its sales frequency accordingly. Long-term plans include expanding into online auctions to cater to buyers across East Africa. The company aims to offload 10 to 20 containers of spare parts monthly, leveraging its strategic location near the Embakasi Inland Container Depot (ICD) for efficient distribution.

Bidders participating in the auction are required to register and bid online, adhering to preset reserve prices for each item sold. This structured approach introduces transparency and efficiency into transactions, benefiting both buyers and sellers.

Available items include engines, gearboxes, headlights, door parts, nose cuts, and bumpers, offering comprehensive solutions for automotive repair needs. Kaiho’s foray into the Kenyan market underscores its commitment to enhancing accessibility and efficiency in the automotive spare parts sector, promising mutual benefits for stakeholders.

photo source: Google

By: Montel Kamau

Serrari Financial Analyst

4th April, 2024

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