Sales of new motor vehicles have started recovering from the economic fallout of the Covid-19 pandemic following the reopening of the economy starting July.
Travel restrictions and the panic induced by the disease saw orders plummet to a low of 568 units in May.
Sales have, however, risen steadily to reach 1,044 units in August and nearly matched the peak of 1,049 units in February.
Sales of new motor vehicles have started recovering from the economic fallout of the Covid-19 pandemic following the reopening of the economy starting July.
Travel restrictions and the panic induced by the disease saw orders plummet to a low of 568 units in May.
Sales have, however, risen steadily to reach 1,044 units in August and nearly matched the peak of 1,049 units in February.
Data from the Kenya Motor Industry Association (KMI) shows that orders in the eight months ended August are still down 26.3 percent but the downward trend has been reversed.
Dealers including Isuzu East Africa, Toyota Kenya and Simba Corporation sold a total of 6,580 units in the review period compared to 8,940 units a year earlier.
“Reopening of the economy is a major factor for the rebound in sales,” said Rita Kavashe, the chief executive of Isuzu East Africa.
On a monthly basis, May saw the biggest sales contraction of 54.4 percent but the decline rate has been slashed to 23.9 percent in August.
The government had imposed restrictions on domestic and international travel besides shutting schools and bars to control the pandemic which was first reported in the country on March 12.
Most of those measures have been removed starting July, with the number of infections and deaths from the disease steadily declining.
Ms Kavashe said that demand from transport operators and schools fell the most during the lockdown period while sales of heavy commercial vehicles like tippers remained strong.
She noted that banks had severely cut back lending on the outbreak of the disease but have since resumed financing of vehicle purchases.
While sales continue to recover, the performance for the full year ending December is expected to be substantially lower compared to the year before.
“We project sales for the full year to be off by 20 to 25 percent compared to 2019,” Ms Kavashe said.
New vehicle dealers sold a total of 13,199 units last year, meaning that they expect to move a maximum of about 10,560 units this year.
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