Written By Mary Mumbua 📝
New vehicle sales increased by 11.7 percent in the first quarter which ended March, indicating that the industry is continuing to recover after experiencing lower sales in 2020 as a result of the Covid-19 pandemic.
Data from the Kenya Motor Industry Association (KMI) shows that the formal dealers including Isuzu East Africa, Toyota Kenya and Simba Corporation sold 3,203 units in the review period, up from 2,867 units a year earlier.
Economic growth contracted by 0.3 percent in 2020, but rebounded to 7.6 percent last year after the Covid-19 restrictions were lifted in response to the pandemic’s waning.
Among the major dealers, Toyota dealer CFAO Motors Kenya experienced the highest sales growth in the first quarter ended March, increasing unit sales to 770 from 608, a 26.6 percent increase.
Following that, the dealer’s market share increased to 24 percent from 21.2 percent.
CFAO Motors, on the other hand, has announced that its 2022 full-year sales may fall by 700 units due to a semiconductor chip shortage, which is affecting vehicle supply to customers.
“It [sales] is coming down because currently, we have a few challenges all over such as getting the chips,” Mr. Arvinder Reel, the firm’s managing director said in an interview
“At this point in time, we cannot meet our demand. We have more demand than supply and we hope that we can catch up with production in the next few months.”
Isuzu, which sells its own brand of vehicles, increased its sales by 3.7 percent to 1,215 from 1,171.
However, its market share fell from 41 percent to 37.9 percent.
Other dealers, such as DT Dobie, have also warned of a possible sales decline due to the chip crisis, which is expected to last until 2023.
As the shortage worsens, some automakers have resorted to eliminating high-tech features such as park assist and touchscreens.
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