Fresh car sales hit record high of Ten, ninety eight units in six months (Kenya) – Asoko Insight
Fresh car sales hit record high of Ten,098 units in six months (Kenya)
Sales of fresh vehicles in Kenya hit a record high of Ten,098 units in the very first half of the year, indicating enlargened economic activity and rising consumption power.
Industry data shows that the enlargened sales are mainly driven by rising request for commercial vehicles, including pick-ups and trucks.
The sales enlargened 13.Two per cent from 8,915 units in the same period last year, reaching an all-time high after rising for three consecutive years.
Dealers like General Motors East Africa (GMEA) and Simba Corporation were the largest beneficiaries of the rising request for buses, trucks and pick-ups, gaining or defending their market shares as others lost.
“There is rising request from infrastructure projects and sectors like manufacturing, construction and trade,” said Rita Kavashe, GMEA’s chief executive.
She said the industry projects total sales this year to reach Nineteen,000 units.
At Ten,098 units, the sales in the six months ended June are already 57.7 per cent of the total sales of 17,499 units in 2014. It remains to be seen what influence the rising interest rates will have on sales in the 2nd half, with most of the fresh vehicle purchases dependent on bank financing.
The Central Bank of Kenya is raising interest rates from the current average of 15.Five per cent to tame inflation and support the shilling whose weakening to lows of one hundred two units to the dollar has also made vehicles more expensive.
Sales of the commercial units grew at a swifter rate of inbetween 11.Four per cent and Sixty nine.Three per cent in the very first half compared to those of passenger cars that enlargened at a rate of Trio.Two per cent in the period.
Prime movers, which haul the most intense cargo, recorded the fastest sales growth at Sixty-nine.Three per cent to five hundred three units and were followed by trucks that leaped fifteen per cent to Trio,494 units.
Sales of buses enhanced 13.Three per cent to 1,120 units while that of pick-ups rose 11.Four per cent to Three,329 units.
Dealers strong in the commercial segment thus fared better compared to their rivals that depend more on passenger car sales.
GMEA enlargened its sales by seven hundred forty eight units to Two,993 in the period, raising its market share to thirty per cent from twenty five per cent as it substituted Toyota Kenya as the country’s fattest dealer.
Most of GMEA’s sales are in the pick-up, buses and trucks segment through the Isuzu franchise.
Toyota, which leads in fresh saloon car sales, eyed its sales decline by three hundred eighty six units to Two,427 units and resulted in its market share pulling down from thirty two per cent to twenty four per cent. It has also deepened its presence in the commercial vehicle market through the Hino bus and truck franchise.
Simba Corporation, the seller of BMW cars and Mitsubishi trucks, expanded its sales by two hundred units to 1,652 units and maintained its market share at sixteen per cent.
CMC Holdings grew its sales by three hundred eighty four units to 1,025 units. This spotted the dealer increase its market share from seven per cent to ten per cent, rising to the fourth position as rival DT Dobie declined after losing the Nissan franchise.
DT Dobie, with a three per cent market share, is now tied with its rival Crown Motors which took over its Nissan franchise last year.
Fresh car sales hit record high of Ten, ninety eight units in six months (Kenya) – Asoko Insight
Fresh car sales hit record high of Ten,098 units in six months (Kenya)
Sales of fresh vehicles in Kenya hit a record high of Ten,098 units in the very first half of the year, indicating enlargened economic activity and rising consumption power.
Industry data shows that the enhanced sales are mainly driven by rising request for commercial vehicles, including pick-ups and trucks.
The sales enhanced 13.Two per cent from 8,915 units in the same period last year, reaching an all-time high after rising for three consecutive years.
Dealers like General Motors East Africa (GMEA) and Simba Corporation were the largest beneficiaries of the rising request for buses, trucks and pick-ups, gaining or defending their market shares as others lost.
“There is rising request from infrastructure projects and sectors like manufacturing, construction and trade,” said Rita Kavashe, GMEA’s chief executive.
She said the industry projects total sales this year to reach Nineteen,000 units.
At Ten,098 units, the sales in the six months ended June are already 57.7 per cent of the total sales of 17,499 units in 2014. It remains to be seen what influence the rising interest rates will have on sales in the 2nd half, with most of the fresh vehicle purchases dependent on bank financing.
The Central Bank of Kenya is raising interest rates from the current average of 15.Five per cent to tame inflation and support the shilling whose weakening to lows of one hundred two units to the dollar has also made vehicles more expensive.
Sales of the commercial units grew at a swifter rate of inbetween 11.Four per cent and Sixty nine.Three per cent in the very first half compared to those of passenger cars that enlargened at a rate of Three.Two per cent in the period.
Prime movers, which haul the most intense cargo, recorded the fastest sales growth at Sixty nine.Three per cent to five hundred three units and were followed by trucks that leaped fifteen per cent to Three,494 units.
Sales of buses enhanced 13.Three per cent to 1,120 units while that of pick-ups rose 11.Four per cent to Three,329 units.
Dealers strong in the commercial segment thus fared better compared to their rivals that depend more on passenger car sales.
GMEA enlargened its sales by seven hundred forty eight units to Two,993 in the period, raising its market share to thirty per cent from twenty five per cent as it substituted Toyota Kenya as the country’s largest dealer.
Most of GMEA’s sales are in the pick-up, buses and trucks segment through the Isuzu franchise.
Toyota, which leads in fresh saloon car sales, eyed its sales decline by three hundred eighty six units to Two,427 units and resulted in its market share pulling down from thirty two per cent to twenty four per cent. It has also deepened its presence in the commercial vehicle market through the Hino bus and truck franchise.
Simba Corporation, the seller of BMW cars and Mitsubishi trucks, expanded its sales by two hundred units to 1,652 units and maintained its market share at sixteen per cent.
CMC Holdings grew its sales by three hundred eighty four units to 1,025 units. This eyed the dealer increase its market share from seven per cent to ten per cent, rising to the fourth position as rival DT Dobie declined after losing the Nissan franchise.
DT Dobie, with a three per cent market share, is now tied with its rival Crown Motors which took over its Nissan franchise last year.