Business Daily Kenya:
Steve Umidha @steveumidha
Kenya’s motor vehicle industry is actually required to grow by 15 per cent This particular year following a difficult period which was largely characterised by low sales in 2017. According to Kenya Motor Industry Association (KMI), dealers could witness an upsurge inside the number of completely new vehicles sold locally This particular year, owing to enhanced government interventions as well as condensed political activities.
Key among the factors hoped to improve the sector include recent remarks by Industrialisation Cabinet Secretary Adan Mohammed, who said which the government will further slash age limit for imported cars via the current eight years to a few years, in a host of incentives intended to promote local vehicle assembly.
Also on the cards are tax reforms proposed by the National Treasury to slash by half corporate tax for local car assemblers. Despite the decline of 21 per cent last year, KMI gives an upbeat outlook, pointing towards an improvement This particular year with its chairperson Rita Kavashe saying such incentives will grow the sector by 15 per cent.
“Last year’s low sales were as a result of elections however This particular year we expect things to be different. We expect the market to grow by at least 15 per cent This particular year,” said Kavashe. some other players like Simba Corporation are voicing similar sentiments, saying the industry has the potential to grow to the levels witnessed in 2016 as well as 2015, with the latter period seeing 19,553 vehicles sold.
“The last two years were not Great for the industry, however we believe This particular year could be better, however This particular will be dependent on interest rate capping – if something is actually done about the item. If reviewed then we could see double-digit growth of at least 10 per cent,” said Simba Corporation Group chief executive Dinesh Kotecha.
Last year, the industry endured the brunt of negative consumer sentiment especially inside the commercial segment, with most firms apprehensive to spend on buying completely new vehicles as well as entering leasing contracts.
The banking law which capped interest rates is actually further blamed to have played a role which hampered the industry’s growth. Several vehicle dealers like Swedish brand, Volvo, French car maker, Peugeot among some other car brands have started out local assembling using a target to reap via the growing industry.
German car maker, Volkswagen which set up in 2016 announced last month which the item is actually looking to double production of the VW Polo Vivo to at least 300 vehicles at its Thika-based plant while at the same time exploring producing a second style.
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Dealers forecast 15pc leap in completely new motor sales