Mercedes reclaims top spot in Kenya’s luxury vehicle sales

Mercedes has regained its status as Kenya’s top-selling luxury car brand in the first half of the year, relegating new entrant Porsche to second place.

Data from the Kenya Motor Industry Association (KMI) shows that Mercedes dealer DT Dobie sold 53 units in the six months ended June, emerging as the fastest moving marque in the high-end car market.

This saw it overtake Porsche sales that stood at 47 cars in the same period, having rallied to top the luxury segment in the whole of last year after moving 125 units.

Porsche had pulled off the feat despite officially launching operations in May last year, overtaking Mercedes’ sales of 73 units.

The performance of Porsche has been linked to a pent-up demand for the sports cars that previously did not have a local dealer.

The Mercedes turnaround is, however, seen as a return to the old trend where the brand has dominated luxury sales, helped by strong demand from the government, businessmen and senior corporate executives.

Most of the Porsches have been sold to wealthy individuals, including top professionals seeking trendy, high-performance cars.

The Cayenne SUV model –priced at between Sh10 million and Sh14 million – accounted for most of the Porsche sales, moving 39 units.

Total sales in the luxury market jumped 25 per cent to 192 units in the first half compared to 153 units the same period last year, overtaking the overall new vehicle market whose sales increased 13.2 per cent to 10,098 units.

Dealers attribute the rising demand for the high-end cars that can cost up to Sh30 million to favourable financing terms and an influx of expatriates hired by multinationals that have entered the Kenyan market.

“There has been favourable financing of luxury car purchases including foreign currency loans and interest rates of about 10 per cent,” a Porsche official told the Business Daily. “The entry of more foreign firms in the country is also boosting demand.”

The performance marks a continued recovery in the luxury car segment that took a hit in 2009 when the government banned the purchase of the expensive makes for top civil servants in a bid to reduce wastage of taxpayers’ money.

Increased demand for the cars is seen as a reflection of rising incomes and consumption among Kenya’s rich and middle-income households.

DT Dobie, which also sells the Jeep Grand Cherokee luxury SUV, saw its total market share drop to 42 per cent in the first half compared to 44 per cent a year earlier.