Optimism as October auto sales output rise
Steve Umidha @UmidhaSteve
New vehicle sales hit 1,078 units in October, in what is a fourth straight surge and a signal to an economic rebound gathering pace.
Despite lower sales compared to last year, the surge in sales of SUVs and trucks, kept the industry optimistic through the month.
Latest industry data shows that 8,629 units have been sold since the start of the year, as dealers leveraged eased coronavirus lockdown measures and expected discoveries of coronavirus vaccines.
The Kenya Motor Industry Association (KMIA) data which was released yesterday shows 1,057 units were sold in September compared to 1,044 new vehicles sold a month earlier.
In July the industry sold 910 units while 756 new vehicles were sold in June – in what has been a consistent growth since then.
The auto industry sold 10,996 new vehicles in a similar period last year – 2,367 units less.
Pandemic shocks
However, independent analyst Trevor Lumenya says the industry will not meet its annual target on back of pandemic shocks and other market dynamics.
“The industry will not match last year’s numbers for obvious reasons as the pandemic has had individuals and companies alter their spending plans.
It is a similar thing you witnessed this year with government leases where that number has reduced,” he said while commenting on the KMIA data in a telephone interview.
With the end of year festivities approaching, more positive bearings are expected in the industry.
Experts expect growth in the last quarter to improve positive sentiments as the Stanbic Bank Kenya Purchasing Managers Index (PMI) Survey notes that stocks increased in tandem with favourable predictions for future demand.
