This archive report was first published on 8 May 2020.
As the COVID-19 pandemic took hold in Kenya, a surprising trend emerged in the luxury car market. According to statistics from the Kenya Motor Industry Association (KMI), dealers sold 45 high-end cars between January and March 2020, a significant increase from the 26 units sold during the same period in 2019.
DT Dobie, the distributor of Mercedes-Benz in Kenya, was the top-selling luxury brand, with 17 units sold during the period under review, up from 13 units in the previous year. Inchape Kenya, the Land Rover franchise holder, sold 12 units, while Porsche Kenya sold seven units, a significant increase from zero sales during the corresponding period in 2019.
However, the luxury car market is not immune to the challenges posed by the pandemic. The automobile sector has suffered due to lack of access to financing and stringent regulations in the banking sector, which require documentation for transactions above Ksh530,000.
The COVID-19 pandemic is also expected to have a significant impact on the luxury car market, with fewer people trooping to work on a daily basis. As a result, the new vehicle market is expected to hit a 15-year low in sales for the whole of 2020.
Kenya's automobile sector players, including Simba Corporation, Toyota Kenya, and Isuzu East Africa, reported sales of 13,199 units last year and now expect to record lower numbers than in 2006, when 9,451 units were sold.
