Car dealers in Kenya are increasing their investments in the country in order to capitalise on the expected upturn of the economy.

The Standard reports the country's new car market is expected to decline further this year as the economic slowdown takes its toll on the industry.

Hylton Bannon, Toyota East Africa's new managing director says the car maker plans to increase its presence in region by establishing logistics, spare parts and service facilities in Nairobi.

According to figures, 13 000 new cars were sold during 2008, with the number expected to drop to 10 500 this year. While the drop can be attributed to the economic situation, the industry also received stiff competition from the used cars market. It is said that for every new car sold, five other are sold in the used cars market.

The newspaper reports that Toyota East Africa increased its market share from 23% to 24% during the year, despite the tough economic conditions.