This comes amid mergers and acquisitions in the country’s automotive industry, which has seen some brands, either join business or change dealerships to drive sales.
Dealers in the country sold a total of 1,020 new units, whose mileage read zero at the point of sale, in April.
This was down from 1,053 sold in the month of March, Kenya Motor Industry Association (KMIA) data shows, as the impact of the weak shilling to the dollar starts to be felt.
Sales for January and February were 792 and 889 units, respectively.
Last month, Isuzu continued to dominate the market with a 55.1 per cent share with sales of 562 units.
Toyota units sold were 262 (26.4%) with the two accounting for 81.5 per cent of the market share.
Trucks and pickups were the most sought after category reflecting sustained activities in the transport, building and construction, retail and agriculture sectors.
There was a slight drop in the number of trucks sold which was 467, down from 460, but remained the biggest category bought.
It was followed by single cabins whose sales went up 188 , from 165 in March, while the number of medium buses went up from 45, from 35.
Double cabin sales dropped to 107 from 121, small buses 41 units down from 46, while station wagons dropped slightly to 126 units from 129.
Other notable sales were in the prime movers, large buses and Sport Utility Vehicle (SUV) categories , with no saloon cars sold during the month.
Year-to-date, dealers have sold 3,778 units with Kenyans seen to remain loyal to cheaper second-hand imports.
The country imports between 7,000 and 9,000 units a month, according to the Car Importers Association of Kenya (CIAK).
This can go up to 12,000 units in the last months of the year, when the unit prices begin to drop in the import source markets, and low taxes.
They are mainly from Japan (80 per cent), United Kingdom, United Arab Emirates, Singapore and South Africa.
While the average lowest asking price range for new cars is Sh1.9 million in the showrooms, the seconds-hand import market has units going for as low as Sh900,000, though low capacity.
Most new cars sold in the market are also complete knock-downs which are imported as parts and assembled in the country, with a smaller percentage being fully built locally.
The dollar shortage witnessed in the country this year amid a weak shilling has impacted on costs, which has forced dealers to adjust prices.
“For the strength(dollar), we are responding through price adjustments. The changes have been upwards of 10 per cent,” Isuzu EA general manager, commercial finance, Gabriel Kanyingi told the Star.
For dollar scarcity, the dealer says they are constantly engaging with banks to buy any available dollars on a daily basis to build enough to pay suppliers.
“The implication of all this will be felt in the second half of the year. High prices are likely to dampen demand,” Kanyingi said.
The situation could be worsened by the rising interest rates from the banks on the retail front, which is expected to slow down uptake of asset financing products.
“If the situation is not reversed we shall be faced with a reduced order pipeline which will affect production volumes too,” he said.
The new motor vehicle market has witnessed a number of shakeups in recent months as dealers fight to remain in business and drive sales.
Last month, CMC Group announced a shift from mass-market passenger vehicle segment, after losing dealerships on Ford, Suzuki and Mazda franchises in Kenya.
The company has shifted focus to agriculture mechanisation and two-wheelers.
Salvador Caetano will handle Ford from the third quarter of 2023 while Suzuki will be supported by CFAO motors (formerly Toyota Kenya), from the second quarter of 2023 whioch started last month.
Mazda is expected to announce the new distributor in the coming months.
DT Dobie and CFAO Motors Kenya (the seller of Toyota models) have merged their operations.
This leaves the total number of key dealers at 12, down from 14, who are currently dealing with the 28 main vehicle makes in the market.
