Luxurious cars sale order hit 73pc in the first quota of 2020

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Orders for luxury cars like Range-Rover, Mercedes-Benz, Porsche have increased by 73 percent in the first quarter of the year despite the economic slowdown experienced in the first three months to March.

According to data from the Kenya Motor Industry Association (KMI), the first quota saw 45 units of luxury cars sold in comparison to the 26 units sold in 2019 within a similar period.

High-end cars saw a better performance in comparison to the overall new-vehicle market that had a fall of 1.6 percent in sales to 2,698 units from 2,741 units over the same period.

The high number of sales was recorded when the country had experienced little economic impacts from the coronavirus pandemic before the implementation of regulations such as the movement restrictions.

The top-selling luxury brand was Mercedes-Benz, with 17 units up from 13 units in 2019 in the first quota. Land Rover increased sales from 11 to 12 units. Porsche Centre Nairobi had seven sales. It did not have any sales in 2019 due to stock-outs.

However, high-end dealers says the demand for orders have since gone down due to the pandemic that has seen banks lack to finance their customers.

“Sales since April have been terrible…Banks are not lending, and most of our customers rely on loans to fund their purchases.” Said an executive car dealer.

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Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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