Kenya’s new vehicle sales rise for third straight month in September

Vehicle sales advanced for a third straight month in September, signaling that an economic rebound is gathering pace despite speedy rise in new coronavirus cases in the country.

The increased number which hit an impressive 1,057 units in the month bringing to a total of 7,551 vehicles sold since the start of the year, new industry data shows, as dealers benefitted from easing of coronavirus (Covid-19) lockdown measures.

Kenya Motor Industry Association (KMI) figures, representative body of the formal motor sector shows that a total of 1,044 vehicles were sold a month earlier compared to 910 units sold in July while car dealers sold 756 new vehicles in June bringing.

All dealers announced improved sales with only the top 10 brands to report losses being the industry leader Isuzu, falling 16.8 per cent, followed by Toyota which recorded a growth of 1.7 per cent while the best performance was registered by Land Rover, increasing sales by 500 per cent.

Looming End Year festivities is further expected to have positive bearing into the industry with dealer Toyota Kenya for instance readying for the period with the re-launch of its new Toyota Starlet model into its production line today.

Experts expect industry growth in the last quarter of the year experts on improving positive sentiments in the business environment.

“This trend will continue to the last month of the year. And it is highly likely car makers will close their books remarkably in a relatively tough time,” said Stephen Mbuthi, a car aficionado.

Kenya’s private sector recorded a third straight month of growth in September, with output and new orders rising solidly amid second phased re-opening of the economy.

The Stanbic Bank Kenya Purchasing Managers Index (PMI) Survey posted 56.3, signaling continued improvement in business conditions in September – the highest reading since April 2018 in the health of the private sector economy.

Readings above 50 signal an improvement in business conditions on the previous month, while readings below 50 show a deterioration.

September data pointed to a third consecutive monthly increase in output across the Kenyan private sector economy – with the rate of expansion quickening from August, and was the fastest seen in almost two-and-a-half years.

With the government easing lockdown restrictions during the third quarter of the year, the September PMI index shows that firms saw a release of pent-up demand as clients largely returned to markets.

Due to the still-strong presence of imported pre-owned vehicles and the slow development of the economy, the Kenyan new light vehicles market was far to be considered solid. However, the effects of strict social distancing measures and widespread travel restrictions further deteriorated the consumer demand impacting heavily the market.