The sales of luxury cars in Kenya dropped by 30%, a report by the Kenya Motor Industry Association (KMI) has revealed.
According to the federation of companies, the drop was witnessed in the 11 months preceding November 2020 and was attributed to the Coronavirus crisis.
KMI statistics showed that orders for high-end vehicles fell to 236 units in the review period which was lower than 340 units in 2019.
Among the luxury vehicles that saw a drop included German-based Mercedes Benz, which saw 148 units sold down from 257 units in a similar period in 2019 representing a 42.41% decrement.
Six jaguar cars were sold as compared to seven the previous year while the sales of Bentley vehicles dropped from three to two units.
The industry statistics further revealed that Porsche Centre Nairobi had a drop of one unit from 24 units in 2019 to 23 units.
The sales of Land Rover models slowed down to 33 from 40 units in the 11-month period.
Despite the drop in most of the brands, the data shows more BMW cars were bought in 2020. The brand sold more than three times the units sold in July-November 2019.
According to the latest report by Research firm TIFA, there was a drop in the prices of most vehicles. Pick-ups, 4-wheel drives and SUVs, saloons, hatchbacks, buses and vans recorded the most significant drop in prices.
Kenya's used vehicle market has been dominated (34.4% - 151,000) by luxury 4 Wheel Drive Vehicles and Sports Utility Vehicles (SUVs).
Dubbed Kenya Used Vehicle (KUV) Index Dec 2020, the report reflected the harsh effects of the pandemic, as SUVs and 4 wheel drive vehicles posted for sale are usually linked to Kenya's affluent group.
The report further detailed that imported second-hand vehicles account for 85% of Kenyan car purchases.
Kenya's used car market has been hit hard by the effects of the pandemic, with dealers reportedly forced to cut prices by up to 15% in response to depressed demand.
