Dealers of new vehicles in the country have recorded a drop in monthly sales with high end brands moving the least, as Kenyans continue to prefer cheaper imported second-hand units.
Industry data shows makes such as BMW and Range Rover and Land Rover recorded zero sales at showrooms across the country in the month of June.
British multinational automotive distributor-Inchcape for instance sold only two new Range Rovers in six months to June, and five BMW units. It sold a total of 10 Land Rovers during the period.
Mercedes sales were 15 units during the month of June mainly commercial vehicles (trucks and buses), as saloon cars uptake remained low.
This, as overall half-year sales on new vehicles fell 12.6 per cent where industry data by the Kenya Motor Industry Association (KMIA) shows the 11 main dealers sold 4,982, compared to 5,697 units sold during the same period last year.
During the period, Isuzu East Africa continued to dominate the market, selling 2,354 units which is 47.3 per cent of the total industry sales.
CFAO Motors Kenya (which is a merger of formerly Toyota Kenya and DT Dobie) accounted for 32.7 per cent of total sales as buyers drove off with 1, 630 units, while Simba Corp which deals in Mitsubishi, Mahindra and Ashok Leyland came in a distant third with 522 units in sales.
Trucks were the most bought vehicles during the period (1,754 units), pointing to sustained activities in the transport, agriculture, construction and retail sectors.
Buyers also went for pick-ups (both single and double cabins), with dealers mainly Isuzu and CFAO selling 1,492 units during the period.
Other notable sales were in medium buses (513 units) signaling continued demand in the matatu sector, station wagon cars (462 units) and prime movers (207 units).
“We expect continued uptake of locally assembled heavy commercial vehicles, trucks, buses, and other units,” Isuzu Sales and Marketing Director, Wanjohi Kangangi, said.
Even so, Kenyans continue to prefer cheaper second-hand cars with the country bringing in an average 6,000 to 8,000 units per month.
Local assemblers and dealers have been banking on KS1515:2019 standard by the Kenya National Bureau of Standards to help tame the high imports and support the growth of the local assemblies.
The standard meant to tighten inspection and allowable imports unveiled in 2019 was however challenged in court, with a pending case to date.
The majority of the new cars (zero mileage) are Completely Knocked Down units.
These are vehicles that are shipped in parts and assembled at the dealership or factory, meaning the country is still far from becoming an automaker.
To meet the high demand, the country is forced to import with the government allowing second-hand cars within an eight-year age limit.
Second-hand cars are cheaper, averaging between Sh800,000 and Sh1.5 million for the low-capacity units, compared to new cars whose starting price is about Sh2.5 million.
According to the Car Importers Association of Kenya (CIAK), locally assembled units are expensive by more than Sh600,000, compared to imported used cars where some are even more superior than the new ones.
This has seen Kenyans continue to prefer imported units mainly from Japan which is the source of up to 80 per cent of these vehicles. Other sources are UAE, UK, Singapore and South Africa.