Local car units sale up 29.8% to 14,250 units in 2021
Local car dealers in the country saw an uptick in sales of their units in 2021 when they moved 14, 250 units despite the coronavirus-induced economic headwinds.
This represents a 29.8 percent surge in sales compared to 10, 977 units that were moved same period in 2020.
According to data from Kenya Motor Vehicle Industry Association (KMVIA), dealers including, Toyota Kenya, Isuzu East Africa, Transafrica Motors and Simba Corporation contributed to a six-year high sale of the units last year.
With the majority of Kenyans now shifting to dealing locally assembled goods, it has since proved tough for importers of fully built but imported car dealers who saw a decreased number of units sold.
The sale of imported units dropped by 29.4 percent in 2021 to 4,195 units compared to 10,054 units that were sold same period in 2020.
According to the Kenya National Bureau of Statistics (KNBS), carmakers like Toyota and Volkswagen are cutting their production in the wake of an inadequate supply of semiconductors, a key component of vehicles’ electronic parts.
“Economic recovery from the effects of the Covid-19 pandemic continued in the third quarter of 2021 as a result of the gradual easing of containment measures instituted to curb the spread of the disease,” said KNBS.
This even as local producers recognized the government’s initiative to enact favourable policies that have contributed to the rising fortunes.
Wanjohi Kangangi, sales and marketing director at Isuzu East Africa acknowledged the role President Uhuru Kenyatta has played since 2013 in the growth of the auto sector through various policy initiatives like the robust support of the Ministry of Industrialisation, Trade and Enterprise Development.
In line with the Buy Kenya Build Kenya initiative, the automotive industry is set to grow its share of the Gross Domestic Product (GDP) from 9.2 percent to 15 percent by 2022.