Luxury car brands sales drop in Q1

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Luxury car brands. PHOTO/COURTESY: Auto Express

Only 26 high luxury cars were sold in the country in the first quarter of 2019 and according to statistics from the Kenya Motor Industry Association (KMI), dealerships DT Dobie and Inchcape dominated the high end car sales in the period under review with the showrooms jointly selling the 26 high end luxury cars.

Both dealers sold 13 high end cars each in the period under review with all units sold by DT Dobie being Mercedes while Inchcape sold 11 Land Rover and two Jaguar models.

Despite leading in terms of sales in the quarter ended March, both dealerships recorded a drop in vehicle vending with DT Dobie selling two cars less than what it managed to do in a similar period last year and Inchcape selling seven automobiles less than what it did in 2018 Q1.

Industry data attributes the slump in posh car sales to the fact that luxury brands such as Jeep, Bentley, Porsche and BMW were out of stock locally and thus the aforementioned brands did not sell a single unit in the period under review. This greatly contributed to the nation’s posh car segment sales dropping to 26 units from the 65 vehicles that were sold in the first quarter of 2018.

According to the Business Daily, global demand and supply dynamics is what contributed to Porsche and Bentley being out of stock while Jeep failed to make any sales in the period under review because DT Dobie has been slow in marketing the brand to local consumers.

The Business Daily similarly reports that the overall new vehicle market recorded a 14.5 per cent drop in orders to 2,741 units in the period under review. The industry-wide nosedive was attributed to difficulty in accessing loans to finance the acquisition of the vehicles by consumers and slow registration by the National Transport and Safety Authority (NTSA).

ALSO READ: Local demand for luxury cars drops since turn of year

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