New vehicle sales post impressive growth in February
Wednesday, March 17th, 2021
New car sales rally continued in February as most dealers posted consistent gains with a total industry sale of 1,738 units during the month, industry regulator Kenya Motor Industry Association (KMIA) has said.
Top car makers Isuzu East Africa, Toyota Kenya, Mitsubishi and Nissan all reported robust sales growth in the domestic market last month as demand for personal mobility amid Covid-19 pandemic continued to drive the market.
For instance, market leader Isuzu East Africa promptly met the demand from customers and its domestic sales followed closely by Toyota Kenya with the demand equally seen in the truck business amid continued growth in infrastructure projects.
New vehicle sales in Kenya dropped 14.6 per cent last year, hit by a sluggish economy that was triggered by the coronavirus pandemic. The industry sold 11,086 vehicles in 2020, down from 12,981 in the previous year, KMIA figures show
Car dealers sold 858 units in January 2021, 55 more than the industry sold in the first month of 2020.
Manufacturers such as Volkswagen have been investing in vehicle assembly in Kenya in recent years, attracted by its long-term economic growth prospects and its strategic location as a hub for the region.
But that momentum cooled as a result of the ongoing global pandemic that has seen the industry register inconsistent figures.
Before the pandemic, vehicle manufacturers had been investing in Kenya to take advantage of growing demand for newer, environmentally-friendly vehicles.