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Date: 19.01.2017
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Vehicle sales plunge 30 per cent as
buyers steer clear of luxury cars
Vehicle sales have fallen by an estimated
30 per cent over the past year, a new
report by General Motors East Africa
has revealed.
The volume of vehicles sold last year
plunged 30 per cent, with the industry
selling about 13,535 vehicles compared
with 19,523 units sold in 2015. The
December 2016 Hot Report compiled
by General Motors East Africa
shows all the major car dealers in the
country experienced a sharp decline
in sales last year, signalling suppressed
consumption of luxury cars.
This is the first time sales have plunged
since 2009, with all the major dealers,
including DT Dobie, General Motors
East Africa, CMC, Simba Colt, Toyota,
and Tata, recording slower demand
with the exception of Nissan dealer
Crown Motors whose sales went up.
Ford distributor, CMC experienced the
sharpest drop with a decline of 38 per
cent in total sales. '1 he festive month
of December was the worst, with the
industry recording sales of 925 units.
During the period in review, Simba
Colt led the market with a market share
of 27.91 percent.
Toyota registered the highest number
of vehicles sold to the export market at
146 units. G
Meanwhile, General Motors East Africa
accounted for the largest number of
sales during the period under review,
having sold 4,751 units compared with
6,516 units sold a year earlier.
This saw the car dealer's sales plunge by
27 per cent even as it remained with a
35 per cent market share.
According to the report, CMC
Holdings' sales dropped to 970 units
from 1,644 units in what cut its market
share to 6.9 per cent from 8.2 per cent.
DT Dobie, which sells Mercedes trucks
and Jeep SUVs, sold 568 units down
from 879 units. This reduced its market
share to four per cent from 4.4 per cent.
Crown was the only major dealer to
register higher sales to 741 units from
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya
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Date: 19.01.2017
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604 units, boosting its market share with the Vivo and expand to a range quarter of 2015. It was mainly caused
to 5.3 per cent from 3 per cent the of other vehicles, with the first car by a slowdown in Government projects
expected to be rolled out before the end and escalation of interest rates. This,
previous year.
Nonetheless, vehicle sales are set of the year.
she said, impacted negatively on sales
Ms Kavashe had earlier cited a decision
to improve in mid­2017, the Kenya
Vehicle Manufacturers Association by the government to drop excise since most vehicle customers depend
KVMA has confirmed.
duty on vehicle imports and increased on bank financing.
KVMA Chairperson, Rita Kavashe projects across counties to support the The Association has since called for
has projected that sales volumes in the sectors growth.
more incentives to attract investment
motor industry may remain subdued "There was a general slowdown (in within the sector.
until mid­this year.
motor vehicle sales) and that has peaked KVMA said that Kenya's removal
these developments come just weeks into this year. We were projecting the of excise duty on locally assembled
after German carmaker, Volkswagen industry to be at the same level as last cars will boost the industry, but the
set up an assembly plant in Kenya year, about 20,000 vehicles. But we government must make power supplies
to commence production of its Vivo think this year we are going to close at cheaper and address other concerns to
model vehicles.
about 14,000 vehicles which is a major draw more investment, the automobile
Making the announcement late last
year, President Uhuru Kenyatta said
that VWs assembly plant would begin
The slowdown in the auto­industry Thursday.
slump," explained Ms Kavashe.
industry association chief said on
that started towards the end of last
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya