Automobile retailer CMC Motors Group has signed a new contract to sell and service Chinese-made Dayun motorcycles.

The deal marks CMC Group's entry into the fast moving motorcycles market that has recently benefited from a tax-break that Finance minister Amos Kimunya factored into this year's budget.

Dauyn is a product of China's Guangzhou Dayang Motorcycles Company that makes 700,000 motorcycles and an additional 500,000 engines for supply to other motorcycle companies in China annually.

Dayun is one of China's respected motorcycle brands with a strong foothold in Asian, American and European markets.

It has been chosen as the official motorbike for the forthcoming Beijing 2008 summer Olympics Games to be held in August. Initially, the Dayun range of motorcycles will consist of a 125cc street bike and two stylish scooters.

Prices start from Sh86,000 including VAT. The brands are available from the CMC Motors Group showroom on Nairobi's Lusaka Road and at the company's seven branches countrywide.

Tim Jessop, the deputy general manager of the Ford and Mazda Division of CMC, said the motorcycles offer the most cost effective transport for one, or two people and ownership is within the reach of most Kenyans.

"Traffic congestion in our cities and towns is driving demand for motorcycles... The Dayun agency enables CMC to play a role in this expanding market," said Mr Jessop.