Businesses & Financial News

Kenya’s Police Service acquires 100 new Mahindra fleet

By Seth Emmanuel

The National Police Service will Wednesday receive 50 units or phase 1 of their newly acquired Mahindra Scorpio pick-ups as part of their entire fleet of 100 units.

The Indian automaker Mahindra & Mahindra MAHM.NS in 2012 started assembling two of its small commercial trucks in Kenya.

Scorpio Single and double cabin small trucks was Mahindra’s models at a plant in the coastal city of Mombasa. The plant is owned by its local partner, car retailer Simba Corporation.

At the time, Mahindra said it would use Kenya as a gateway into the wider African market to grow its share of the commercial and passenger vehicle categories.

This comes following an impressive year for car makers despite the Covid-19 scare with most dealers including Simba Corporation selling relatively improved unit sales in the local market.

Domestic new car sales grew 18 percent in ten months to October, reversing depressing sales decline seen in a similar period last year, industry data shows.

Figures by the Kenya Motor Industry Association (KMI), a lobbyist for the formal motor sector, show that 1,281 total units were sold in October 2021, compared to 1,087 vehicles car makers managed in the same period last year.

This means that local dealers sold 194 more new vehicles during the month under review compared to a similar period in 2020 – signaling a faster recovery era buoyed by rising consumer confidence amid easing mobility restrictions following curfew seizure.

The October numbers is a culmination of a consistent growth year for players despite the pandemic fears. Car industry enjoyed a record September for new vehicle sales – hitting over 10,000 total units sold since the turn of the year.

That figure has since soared to 11,222 total units sold thus far as of October 2021.

Higher spending from buyers and ease of the economic disruption of coronavirus restrictions as well as cheaper financing options by the banks have been attributed to that growth could see the industry sell over 13,000 new vehicles by year end, for first time since 2018 when the industry sold 13,886 units.

KMI figures shows that 19,523 new vehicles were sold in Kenya in 2015 – the best the local market has seen since the association began taking track of new vehicle sales in Kenya.

Since 2004 when KMIA started compiling car industry data, it is estimated that 218,295 new vehicles have been sold in the local market.

The Kenyan market is a small bazaar for new vehicles since many consumers are confined to second hand imports from Japan by purchasing power limitations, but it continues to attract global automakers such as Volkswagen due to its growth potential.

There have also been minimum success with government’s attempt in promoting local assembly of vehicles through tax breaks for firms and curbs on used imports – but tax agency, the Kenya Revenue Authority (KRA) has muffled those efforts in its quest to improve revenue collection.

 

 

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