Vuka Scuta in Chinese bike deal

7 September 2009

Scooter and motorcycle retailer Vuka Scuta has bought out Loncin South Africa, taking over their current stock and parts inventory as well as distribution of their Chinese-manufactured range of street bikes, scooters, quad bikes, off-road bikes and cruisers.

Vuka South Africa MD Kevin Ferreira said Vuka was approached by Loncin, who were looking for a buyer which could offer its own distribution channels, retail outlets and maintenance support, and added that he viewed the buy-out as a perfect opportunity for market consolidation in the current economic climate.

“Loncin is a well-established brand with prime quality products, and the deal will enable us to introduce a number of new models within a short period of time,” Ferreira said in a statement last week.

“We viewed this as a great way for product diversification, and believe that the new brand can assist us in penetrating new markets.”

According Business Report, the deal is valued at between R3-million and R4-million.

Strong national footprint

While Loncin South Africa distributed their motorcycles via third-party dealers, Vuka has built a strong national footprint of corporately owned stores.

Vuka has committed itself to continue serving Loncin’s existing customer base with services, spare parts and routine maintenance, and will honour all current warranties, and will also offer training and support for all their branches to ensure that the take-over does not adversely affect Loncin customers.

“Loncin is a major quality manufacturer, and the only Chinese manufacturer taking part in the 125cc class of MotoGP,” said Ferreira.

“Loncin was also appointed by BMW Motorrad to manufacture their 650cc cross country engine, due to their technical capability, and the company remains China’s biggest two-wheeler exporter.”

Regional expansion

Vuka has also been appointed by Loncin China to distribute to countries such as Lesotho and Swaziland, and will also explore distribution opportunities into the rest of the African continent.

“With their wider range of models priced between R6 000 and R30 000, Vuka will also be able to meet a broader consumer demand and appeal to new customers,” Ferreira said.

SAinfo reporter

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