Dealers attribute the uptick to delivery of orders that were suspended last year amid the general election uncertainty.
The run-up to the August 2017 general election led to suspension of vehicle purchases among other capital investment decisions.
Consumer spending and business expansion tends to slow down when elections approach, hurting vehicle dealers and sellers of other high-value goods.
Sales of new motor vehicles jumped 12.5 per cent in the first half ended June, with Toyota Kenya registering the highest demand for its brands.
Dealers attribute the uptick to delivery of orders that were suspended last year amid the general election uncertainty.
Unit sales of the motor dealers including Simba Corporation and Crown Motors (the holder of the local Nissan franchise) stood at 6,456 in the review period compared to 5,738 the year before, according to the Kenya Motor Industry Association (KMI) data.
Dinesh Kotecha, the chief executive of Simba whose brands include BMW cars and Mitsubishi trucks, said in a recent interview that the industry is benefiting from a pent-up demand that opened after the peaceful conclusion of the election.
Mr Kotecha added that the industry’s higher sales trend will only be sustained by improved economic prospects.
The run-up to the August 2017 general election led to suspension of vehicle purchases among other capital investment decisions, with investors’ confidence hit by the nullification of the presidential results and orders for a new poll.
Consumer spending and business expansion tends to slow down when elections approach, hurting vehicle dealers and sellers of other high-value goods. Toyota was the biggest beneficiary of the increased demand, with its sales rising to 1,590 units in the review period from 1,336 units the year before.
The fastest-moving models at the dealer included the Hiace minivans, Hilux pick-ups and Land Cruiser sport utility vehicles (SUV).
Simba’s unit sales of its brands –including Renault cars and Mitsubishi commercial vehicles— increased to 1,004 from 932.
Isuzu East Africa, the largest dealer, bucked the trend as its unit sales declined to 1,974 from 2,015.
Isuzu’s performance was weighed down by a phase-out of the Chevrolet franchise, with the dealer’s sales of its Isuzu commercial vehicles rising from 1,906 to 1,966. The dealer will focus on selling Isuzu models exclusively in the coming years.
