Auto sales continue upward swing in August

By Steve Umidha

Sales of new vehicles continued to improve in August after the industry registered growth of 1,372 total unit sales which is an increase from the previous month 1,248 units across all car brands compared to 1,1 23 car makers sold in June – marking an improved 8,817 total units  sold between January and August 2019 by dealers.

Data from the Kenya Motor Vehicle Industry Association (KMI) shows that formal dealers, including Isuzu East Africa, Toyota Kenya and Simba Corporation have had improved sales in the last quarter.

Car and truck buyers were out in force since the year started and that has continued into the year thus far and as a result the auto industry turned in both strong and sluggish sales results just as it heads into the crucial summer selling season.

The continuing inconsistency by dealers comes in the wake of an effort by the Kenyan government to lower age limit of imported cars, or mitumba vehicles even as uncertainty of the future, coupled with the uncertainty over automotive policy – whose cause, the government says is meant to shield local vehicle manufacturers from what new vehicle dealers believe is unfair market competition brought by importers of second-hand vehicles.

Ban on importation of second-hand vehicles and particularly those with 1500cc engine capacity and older than three years, will now take a little longer, after the Kenyan government last week bowed to sustained pressure from car dealers and importers.

The implementation of the draft copy of Motor Vehicle Policy (MVP) was meant to begin June 30. The motor vehicle policy was being prepared by Kenya vehicle manufacturers and auto vehicle players and companies, but continue to face hostility from car importers who insist they were not consulted when such plans were being mooted.

It seeks to lower the age limit of car imports coming into the country from 8 to 5 years while at the same time guaranteeing tariff-free to some vehicle parts being produced in the country.

The move would have made it difficult for buyers of such vehicles, popular on Kenyan roads pay more for such purchases owing to high duty fees and associated costs of buying cars manufactured in recent years.