Sale of New High-end Cars Declined by 50% in 6 Months

By Carlos Onyango / July 22, 2019 | 6:40 am




High-end car dealers are facing a major drawback as the sales of cars have dropped by 50 percent in half a year.

Kenya Motor Industry Association (KMI) revealed data that shows luxurious car brands like Land Rover, Mercedes and BMW have dropped in sales unit from 137 the previous year to 69 this year.

This is a huge drop as compared to the overall sales of new cars in the market which has dropped just by 2.5 percent in the same period.

Ownership changes of the franchises and decrease in stocks of several car models have been linked to these drops.

The 2019 models of Porsche and Bentley, for instance, had source delays that attributed to stockouts for a period of four months.

Porsche’s unit sales dropped from 30 a year to 10 during the review period. Bentley units’ sales are still stagnating at three units a year.

The new model of Porsche (Cayenne) which is also the fastest-selling model, is priced at 12 million shillings with taxes included.

The parent company of Porsche and Bentley is logistics firm Multiple Group, but the two brands are sold by separate dealers.

For the German car Franchise BMW, dealership changes where Simba Corporation transferred to Inchape Kenya prompted the sales to drop drastically from eleven to three.

With the recent publication by the judiciary, that it plans to buy 121 Mercedes cars for judges and other staff, DT Dobie would at least get a serious sales to boost.

Increased crackdown on tax evaders and importation of cheap cars have also been a serious contributor to drop-in car sales.

Lending rate caps was another causative factor as most individuals could not get loans to purchase motor vehicles. Analysts argued the rates cap introduced in September 2016, discouraged lenders to give credits in deliberate efforts to avoid credit risks.







More Articles From This Author







Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2019
  • January 2019 (256)
  • February 2019 (216)
  • March 2019 (285)
  • April 2019 (254)
  • May 2019 (272)
  • June 2019 (251)
  • July 2019 (339)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (314)
  • November 2019 (362)
  • December 2019 (183)
  • 2018
  • January 2018 (291)
  • February 2018 (219)
  • March 2018 (278)
  • April 2018 (225)
  • May 2018 (238)
  • June 2018 (178)
  • July 2018 (257)
  • August 2018 (249)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (284)
  • December 2018 (187)
  • 2017
  • January 2017 (183)
  • February 2017 (195)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (248)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (108)
  • May 2015 (116)
  • June 2015 (120)
  • July 2015 (148)
  • August 2015 (157)
  • September 2015 (188)
  • October 2015 (169)
  • November 2015 (174)
  • December 2015 (207)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950