Kenya’s Luxury Vehicle Sales Drop 65.5% on Slow Sales
Nairobi — Local sales of luxury vehicle brands such as BMW and Mercedes-Benz, among others, dropped by nearly 70 percent in the first quarter of the year ending March 2023 due to dwindling order demand.
The latest data from the Kenya Motor Industry Association (KMI) shows luxury cars sold by DT Dobie and Inchcape Kenya dropped to 11 from 29 during a similar period last year.
While DT Dobie sold three Mercedes Benz from 11 previously, orders for BMWs and Range Rovers dropped to two and one from 10 and six, respectively.
The decline also extends to the total number of vehicles sold during the period.
Dealers only managed to sell 2,758 units, representing a 13.9 percent drop from the previous period.
The slump in car sales comes at a time when the country’s shilling is depreciating against the US dollar, as well as the Central Bank of Kenya’s move to hike interest rates, which have made procuring loans more expensive.
A majority of cars bought locally are financed through bank loans.
Land Rover was the only one that recorded the growth, up from two before.