Corporate News
By VICTOR JUMA
In Summary
Kenya’s new luxury car market recorded a contraction
of 26.5 per cent in the nine months ended September, with Jaguar Land
Rover (JLR) being the only dealer to have recorded sales growth in the
period.
Data from the Kenya Motor Industry Association shows that
sales of high-end cars dropped to 224 units in the period compared to
305 units last year.
Luxury car dealers have attributed the sales
decline to a cutback in spending by rich and middle class households
besides tighter credit markets.
Land Rover models, including Range Rover and
Discovery, defied the sales slump to move 74 units up from 66 units in
what saw the brand replace Porsche as the top selling marque in the
local market.
Jaguar sales more than doubled to 27 units from 12
recorded in the corresponding period. Jaguar and Land Rover brands are
sold by RMA Kenya, which took over the franchise from CMC Holdings.
“Our sales are up because of our value-added
proposition in terms of extended warranty and service plan,” RMA Kenya
chief executive Sanjiv Shah said in an interview. He said the dealer is
offering a five-year or 150,000-kilometre warranty with each car
purchase while the service plan stands at 100,000 kilometres or five
years. Mr Sanjiv added that RMA has also invested in a diverse stock of
luxury cars.
“We have a car for every pocket from $60,000 (Sh6 million) to $360,000 (Sh36.3 million),” he said.
Sales of Porsche, whose demand skyrocketed soon
after the brand’s launch in 2014, declined the most to 46 units from 81.
They were followed by Mercedes whose sales fell to 47 units from 75.
Sales of BMWs, through Bavaria Auto, dropped to 16
units from 40. Jeep Grand sales declined to 14 units from 31, rounding
the list of brands whose demand slowed in the period.
Mercedes and Jeep form part of the franchises held
by DT Dobie. The rivals continue to launch new models, competing on
pricing and brand reputation to grow sales.
CMC recently introduced the Ford Mustang sports car
in the Kenyan market, targeting growing demand for high performance
cars among rich and middle class motor enthusiasts.
DT Dobie will on Friday launch the latest version
of its Mercedes E-Class model which is popular among corporate
executives and top government officials.
The updated models of the E-Class — the E200, E250
and E300 — will be available in the dealer’s showrooms in Mombasa,
Nakuru, Kisumu and Nairobi’s Lusaka and Westlands branches.
The price of the E200 starts at €89,000 (Sh9.8
million) while E250 sells from €97,000 (Sh10.7 million), with customers
paying more for extra specifications and fittings. The price of the
E300 was not immediately available.
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