Auto industry optimistic despite poor August sales

Tuesday, September 20th, 2022 03:33 | By
Second-hand cars
Vehicles at a car bazaar. PHOTO/Courtesy.

MARKET: New vehicle sales were almost flat in August, pointing to a difficult period for auto dealers, a move occasioned by extended electioneering period.

Kenya Motor Industry Association (KMIA) data shows that auto players have only sold 8,752 units between January and August this year, compared to 8,811 in a similar period last year, meaning the sector has sold 59 less units this year.

The condensed year – to – date total sales performance, according to the association, was as a result of the uncertainty surrounding the just ended August 9 General Elections whose outcome saw former Deputy President William Ruto declared the country’s fifth President.

Financial executives

As a result, Kenyan investors and financial executives including those in the auto business, heaved a big sigh of relief two weeks ago after the Supreme Court upheld Ruto’s win, offering some hope and clarity after months of ambiguity which had hindered decision making among businesses.

“We had seen reduced loan inquiries but that has changed almost immediately in the last two weeks since the court ruling, this tells you folks are eager to return to business as quickly as they can,” said Peter Macharia, the CEO of micro lender, Jijenge Credit Ltd. “We are expecting this demand to carry on for the remainder of the year,”he added.  Increased production of electric cars with digital technology as well as rise in digital automobile sales, are expected to boost the sector’s performance, said Dinesh Kotecha, Group CEO of Simba Corporation,

“The elections are behind us now, and we are seeing an improving customer engagement across our outlets, the next few months will be vital,” he said.              –

More on Business