Market News

Covid-19 economic fallout fuels commercial vehicle sales slump

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Simba Corp group chief executive Dinesh Kotecha. FILE PHOTO | NMG

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Summary

  • The number of vans registered between January and September stood at 2,484 units, down 43 per cent.
  • The sale of minibuses and buses were also hit by the subdued market environment.
  • Lorry sales were not spared either with KNBS data showing that 4,333 units were registered in the nine months to September.

The sale of commercial vehicles dipped sharply in the nine months to September as the market grappled with subdued demand due to the economic fallout if the Covid-19 pandemic, new data by the Kenya National Bureau of Statistics (KNBS) shows.

The number of vans registered between January and September stood at 2,484 units, down 43 per cent compared to similar period of 2019 while 2,619 pick-up units were sold in the first nine months of this year, marking a 31.3 per cent drop from last year.

The sale of minibuses and buses were also hit by the subdued market environment.

Some 528 minibuses were registered over the three quarters to September which represents a 62.8percent in sales compared to 2019. The KNBS data further shows dealer sold 596 buses in the nine months to September—a 36.5 per cent fall when matched to a similar widow last year.

Lorry sales were not spared either with KNBS data showing that 4,333 units were registered in the nine months to September, down from 5,060 over a similar period of last year.

Simba Corp chief executive Dinesh Kotecha, however, remained optimistic of improved sales as the country picked-up from the initial disruptions of the pandemic.

“Compared to the previous year period, there has been a decline in sales for both new and second-hand due to the pandemic.

“However, we have started to see a growth in sales for new vehicles since the plummet in April as firms reorganise for business,” said Mr Kotecha.