Luxury car dealers post 65 percent sales decline

New luxury car dealers reported a 65.5 percent drop in sales in the first quarter ending in March due to lower orders for brands including Range Rover, BMW and Mercedes.

The two companies – Inchcape Kenya and DT Dobie – sold just 10 units in the review period, according to data from the Kenya Motor Industry Association (KMI). This was down from 29 units the previous year.

is reading: New luxury car sales down 15%

Sales of Mercedes’ DT Dobie fell to three from 11. Orders for BMW and Range Rover models fell to two and one from 10 and 6, respectively. Land Rover sales only recorded sales growth to four out of two.

Sellers of luxury cars, which can fetch up to Sh30 million, have fared poorly compared to the overall new car market.

Sales in the entire official auto industry fell 13.9 per cent to 2,758 units in the review period, signaling another decline for the sector and driving up prices in response to multiple challenges including a weak shilling.

Dealers including Isuzu East Africa, Simba Corp and Toyota East Africa sold 3,203 units in the same quarter a year earlier.

Simba Corp., whose brands include Proton and Mitsubishi, reported the largest drop in sales among large dealers, down 26.8%, to 248.

Isuzu orders fell 3.3% to 1,174. CFAO Motors, whose brands include Hino and Toyota, bucked the trend to grow its sales 2.9% to 793.

Sales in the industry have been affected due to factors such as higher car prices and higher interest rates.

is reading: Dealer sales of new luxury cars fall 22%

Most car purchases are financed by banks, which have raised the cost of loans in recent months amid soaring inflation and monetary tightening by the Central Bank of Kenya.

→ (email protected)