Kenya’s consumer appetite for sport cars on the rise

Consumer appetite for sport utility vehicles or SUVs has been growing for the last four years, and automakers continue to scramble their lineups to capitalize on the shift.

The shift according to analysts can be explained by the increased fuel economy of those vehicles, some of which now share platforms and components with fuel-efficient vehicles.

Several car dealers including General Motors East Africa, CMC Motors and Simba Corporation have unveiled new luxury cars in order to keep up with the growing demand and competition being influenced by new entrants like Porsche and Renault.

GMEA introduced four models under its Chevrolet and Captiva saloon brands late 2011 before Toyota, CMC motors and Simba Colt responded four months later with launches of new sport cars. That year Simba Colt announced it would unveil 2012 BMW3 series.

Simba Colt sealed the Renault deal last year ending DT Dobie’s marriage with the car manufacturer that had exited the Kenyan market following poor sales brought about by lack of ready spare parts for its cars.

The local dealer then entered a partnership with Portugal’s Salvador Caetano, to form Simba Caetano Formula that later launched three new Renault models last year.

This year CMC motors has introduced new Ford models that has been followed by India’s car maker Mahindra that introduced New Age XUV500 and W10 AWD SUVs models last week.

Auto consultant Stephen Mbuthi says the trend is likely to carry on this year judging by the high numbers of manufacturers keen on the Kenyan market.

“Porsche has enjoyed the market since its launch, so other dealers will be looking to replicate that success,” he says, adding that other factors like the growing number of middle class with disposable income will also contribute to that growth.

Porsche opened its Nairobi office in May 2014 to tap the growing demand and a year later the car dealer relegated DT Dobie in terms of market share. As at last year, Porsche had a commanding 32 per cent market presence against DT Dobie’s 27 per cent.

Over all, the industry sold 19,966 vehicles last year, a growth rate of 15 percent compared to 17,499 units sold in 2014 and 14,542 units in 2013.

According to figures from Kenya Motor Industry Association (KMI) total sales for industry’s Q1 (Jan-March 2016 ) were 3,671, down 15 per cent compared to 4, 299 units compared to a similar period last year, though industry officials say the dip does not reflect a longstanding trend.

Several car companies last week reiterated earlier predictions that the industry was likely to exceed last year’s record annual sales, with sport cars to contribute that growth.

“The industry will continue to attract new players and this will only boost the numbers,” said Dinesh Kotecha, executive director at Simba Colt.