Kenya's sale of new vehicles manufactured took a huge leap upwards and surprised the expected data analysis. In the first three months of 2022, the sale accounted for 3,203 units, which is 367 units more than what was sold in the first three months of last year, i.e., 2021. This new vehicle production has given impressive growth to the commercial sector. Last year, in February, the total vehicles sold were 1,738, and this year it is 1,984 units, giving a rise of 14 percent in the initial months.
Considering January is a slow month for automobile sales, it was estimated by Kenya Motor Industry Association (KMI) that the sales would be low this year too. However, all such sales predictions turned out to be false as the sales of the new vehicles in Kenya in the first quarter were exceptionally good. Another analysis is done, after which it is said that the coming months of April and May might benefit from this growth, but soon after, the general elections come in August, and the sales growth will halt. However, if the country's economic stability is strong, it will create more job opportunities and improve the domestic sector for all industries, including automobiles.
The Chief Executive officer of Simba Corporation, Mr. Dinesh Kotecha, is not expecting continuous growth for the rest of the year. In a telephonic interview, he claims that this year’s sales might be lower than what we sold last year. He also expects Kenya's forever pending automobile policy to be finally announced. Kenya Motor Industry Association’s data shows that last year we ended on a good note with 14,250 vehicles sold despite the pandemic of Covid-19 and other economic and political disruptions that led ahead.
March and September are good months for automobile makers as many parts exchange deals are going on, leading to many people selling their cars. Many used vehicles are resold by the automakers giving them handsome profits. The manufacturers are aware of the new vehicle models that will be launched by July or early August. Therefore, they resell those used vehicles before entering the market. Mr. Arvinder Singh, the managing director of CFAO Motors Limited Kenya, says that we should not expect more growth or sales this year as we have several issues like the rising prices of crude oil, the elections, and the unstable exchange rates to cater to. However, this year will yield the same vehicle sales as last year with Covid-19.
