General Motors takes lead in vehicle exports

By Jackson Okoth

Trucks within the light commercial segment are the best sellers in Kenya’s auto industry according to the latest figures from the Kenya Motor Industry (KMI).

“A drop in interest rates has improved uptake by buyers of new vehicles. We are also seeing heighted activity in the bus segment as the market and investors prepare to transition from small to high occupancy public transport buses,” said Rita Kavashe, the Managing Director at GMEA.

The best performing segments for GMEA is the pick-ups and buses with a huge chunk of its business from non-governmental organisations and Government.

 In August, GMEA’s dominance in the new car sales market was boosted by its leading performance in the export market. KMI figures indicate that GMEA exported 126 units ahead of 46 units by CMC and 35 units by Toyota Kenya. The export market is controlled by GMEA-42 per cent, CMC-15 per cent, DT Dobie-12 per cent and Simba Colt one per cent.

GMEA’s dominance in the new car sales business has been maintained since the beginning of 2012, pushed up by increased demand for its Isuzu buses, heavy commercial trucks and pick-ups.

In August 2012, the best-selling make was the nine tonne Mitsubishi FH truck, a model in the Simba Colt stable, which sold 62 units followed by Toyota East Africa’s 4200cc Land Cruiser diesel estate-55 units, the Toyota Hilux 2500 diesel pick up-38 units, the Nissan Hard body singe cab- 32 units and 28 units of the Isuzu TFR diesel pick up sold by GMEA.

KMI figures also indicate that new car dealers sold 1,026 units in August, this year, a 4.9 per cent decline compared to the same period last year. Out of this, General Motors East Africa (GMEA) was the leading dealer and sold 272 units, Toyota 234 units and DT Dobie 158 units.

The best performing models in August were the single cab pick-ups, which sold 198 units, three to nine tonne pick-ups-193 units, Four-wheel drive station wagons over 2600cc-74 units and the SUVs over 1800cc-38 units.

Mitsubishi’s dominance of the sales charts comes at a time when franchise holder Simba Colt has launched the Mitsubishi Pajero Sport into the market.

New model

“We are introducing this smaller Pajero model to cater for a market segment not previously served. It is not a luxury car and is targeted at those in the middle to upper income bracket,” said Antony Thoithi, group commercial manager, Simba Corporation Ltd.

Simba Colt is hoping the new model will perform well in a market that has been depressed by costly credit, which has kept most customers off the showrooms.

The new cars market is dominated by GMEA with 26.5 per cent market share ahead of Toyota 22.8 per cent, DT Dobie 15.4 per cent and Simba Colt 14.7 per cent. In the July sales, Simba Colt was placed third behind Toyota Kenya and General Motors East Africa. Simba Colt sold 776 units compared to 1,707 units by Toyota Kenya and 1,833 units sold by General Motors East Africa.

Total industry sales for July closed at 1,063 units, a five per cent decrease in sales compared to the same period last year.

The Central Bank of Kenya (CBK) recently made substantial cuts in the central bank rate-the rate at which it lends to commercial banks from 16.5 per cent to 13 per cent. This has been a boost to dealers in new cars as previous buyers who fled the showrooms due to expensive credit, are slowing trooping back.

“A drop in interest rates has improved uptake by buyers of new vehicles. We are also seeing heighted activity in the bus segment as the market and investors prepare to transition from small to high occupancy public transport buses,” said Rita Kavashe, the Managing Director at GMEA.

The best performing segments for GMEA is the pick-ups and buses with a huge chunk of its business from non-governmental organisations and Government.

 In August, GMEA’s dominance in the new car sales market was boosted by its leading performance in the export market.

KMI figures indicate that GMEA exported 126 units ahead of 46 units by CMC and 35 units by Toyota Kenya. The export market is controlled by GMEA-42 per cent, CMC-15 per cent, DT Dobie-12 per cent and Simba Colt one per cent.

GMEA’s dominance in the new car sales business has been maintained since the beginning of 2012, pushed up by increased demand for its Isuzu buses, heavy commercial trucks and pick-ups.