Rough ride for dealers as vehicle sales dip 20pc

DT Dobie was the only auto dealer that grew its sales in the nine months to September this year as all the other dealers registered a decline in the sale of new units, according to a new industry report.

During the period under review, the industry reported a 20 per cent decline in the number of new units sold in the country compared to a similar period last year.

Mix of factors

DT Dobie posted a 2.9 per cent growth in the number of units sold during the nine months to September, which it attributed to high demand for its locally assembled VW Polo Vivo.

The decline by the rest of the industry was attributed to a mix of factors that resulted in reduced spending on new cars by Kenyans. The industry experienced a decline across different vehicle segments, with sports utility vehicles (SUVs), medium trucks, and mini busses being the only categories that registered growth.

The hardest hit dealer was Crown Motors, which holds the franchise for Nissan in Kenya, whose sales dipped 41 per cent over the nine months. The firm sold 294 units in the year to September, compared to 500 vehicles sold over a similar period last year.

Fuso and Tata also saw a major dip, with sales for the two firms going down 35 per cent and 33 per cent respectively.

Carol Wamae, the marketing manager at DT Dobie,said the Polo Vivo, whose local production started at the beginning of this year, has appealed to first-time car owners due to its quality and cost-effectiveness.

The car retails at Sh1.65 million, which she said was comparable to some imported second-hand cars.

“The Polo Vivo has helped us grow during the tough year. We have been selling to both individuals and corporates. We are seeing many Kenyans appreciate that they can be the first owners of a car, which has resulted in increased sales,” said Ms Wamae.