According to Business Daily, as of June 2017, the sale of new luxury cars in Kenya had dropped by 10.6% in the first half of the year. Luxury car dealers attribute this to the Kenyan 2017 elections. Surprisingly though, the sale of BMW and Mercedes rose by 144.4% and 21.8% respectively between January and June 2017.
Looking at SUV’s specifically, demand for Toyota SUVs have been on a downward trend since January 2017. As of June 2017, the median price of a Toyota SUV stands at Ksh 2.45 Million, this is a better performance however as compared to Land Rover SUV’s whose median price is at an all-time low in June 2017 at Ksh 3.05 Million dropping 6% from May 2017. Land rover’s consumer demand has however been relatively stable, dropping slightly in May and June 2017 consecutively.
It seems that both dealers and brands are looking for any way to try and increase sales. For dealers, SUV’s, aged between 5-8 years experienced the highest demand in the market, with Toyota having a 63.85% market share as compared to Land Rover SUV’s which have a 42.84% market share between January and June 2017. Dealers should stock Toyota SUV’s over Land rover as demand for Toyota is higher not to mention the stability in price.
The study has been realized by Data Fintech, a Kenyan consumer data broker, based on data collected on Cheki Kenya, the leading online automotive market platform in Kenya.