High demand for trucks pushes new vehicle sales up 12.5pc

Secretary to Cabinet Mr Francis Kimemia. He said forensic experts from Israel, USA and UK have joined the Kenyan team in carrying out analysis at Westgate mall. FILE  NATION MEDIA GROUP

By VICTOR JUMA

In Summary

• New vehicle dealers sold 9,135 units in the review period compared to 8,117 units a year earlier.
• Sales growth was strong among dealers in commercial vehicles including buses, trucks, and pick-ups, with those selling saloon cars recording weak demand.
• Dealers say demand for commercial units is being driven from increased economic activities in the manufacturing, construction, and trade sectors.

Sales of new motor vehicles rose 12.5 per cent in the eight months to August, driven by higher demand for commercial units.

Data from the Kenya Motor Industry Association (KMI) shows that new vehicle dealers sold 9,135 units in the review period compared to 8,117 units a year earlier.

Sales growth was strong among dealers in commercial vehicles including buses, trucks, and pick-ups, with those selling saloon cars recording weak demand.

Dealers say demand for commercial units is being driven from increased economic activities in the manufacturing, construction, and trade sectors.

Saloon car sales have, however, come under pressure from tight budgets in government and private companies — the leading buyers of new passenger cars.

“Demand for commercial vehicles is strong but the saloon car segment is flat,” KMI chairman Adil Popat told the Business Daily in a recent interview.

General Motors East Africa (GMEA), Simba Corporation, and CMC Holdings are some of the main beneficiaries of the rising demand for buses, pick-ups and trucks.

Toyota Kenya –the biggest seller of saloon cars — sold 1,988 units in the eight months to August compared to 1,976 in the same period last year.

This saw its market share drop to 22 per cent from 24 per cent in what has been linked to the flat sales.

Simba, which sells Mitsubishi trucks, BMW cars, and Mahindra pick-ups, saw its sales rise by the largest margin to 1,484 units from 945 units.

This raised its market share to 16 per cent from 12 per cent, making it the only major dealer to grow its market share besides CMC. Simba recently introduced Geely cars (from China), marking its latest franchise addition in its automotive division.

CMC, which deals in Ford pick-ups and Nissan Diesel trucks, saw its sales rise to 791 units from 587 units, raising its market share to nine per cent from seven per cent.

CMC is set to be acquired 100 per cent by Dubai-based Al Futtaim for Sh13 per share or Sh7.5 billion in a deal that will see it de-list from the Nairobi Securities Exchange.

GMEA, which sells Isuzu buses, trucks, and pick-ups, sold 2,415 units, up from 2,231 units. Despite the sales growth, GMEA’s market share fell to 26 per cent from 28 per cent but retained its position as Kenya’s largest auto dealer.

DT Dobie, the dealer in Nissan pick-ups, Mercedes cars and trucks, saw its sales rise to 1,126 units from 1,081 but its market share dropped to 12 per cent from 13 per cent.