Imported second-hand vehicles at a yard in Mombasa.
Chinese brands led by Sinotruk and Foton have taken a 7.46 per cent market share in Kenya’s new vehicle market, riding on cheaper pricing and introduction of more models by formal dealers.
Data from the Kenya Motor Industry Association (KMIA) shows that new vehicle dealers sold 840 units of Chinese brands in the 10 months to October when total industry sales stood at 11,252.
This represented a significant growth from five years earlier when Beiben, sold by Nelion Trading, was the only Chinese vehicle brand sold by a member of KMIA.
Sales of Beiben trucks stood at 55 units in the 10 months to October 2021, amounting to a market share of 0.49 percent in the period when the industry moved a total of 11,222 units.
The market share of Chinese vehicles in the country is higher than the 7.46 per cent indicated by KMIA data since sales of some brands are not reported.
TransAfrica Motors, for instance, does not report sales of its FAW trucks. Chinese vehicle brands available in the Kenyan market have grown in recent years, with dealers expanding their portfolio to include passenger cars.
Global Motors Centre, a sister company of TransAfrica Motors, earlier this month launched the Jetour brand of sports utility vehicles (SUVs) at prices that are substantially lower compared to showroom prices of rival Japanese and European brands in the same categories.
Jetour, part of Chinese automaker Chery Group, was founded in 2018 and has sold over one million SUVs worldwide.
Global Motors unveiled four Jetour models –the T2 priced at Sh7.8 million, T1 (Sh7.4 million), X70 Plus (Sh5 million) and Dashing (Sh4.9 million).
Chinese electric car manufacturer BYD got a dealer in the Kenyan market in September last year when it appointed Loxea to sell its models.
Most popular Chinese brand
Crown Motors Group, which started selling Nissan models, has in recent years expanded to also distribute three Chinese brands –Greatwall, GWM and Haval.
Inchcape Kenya, which previously sold luxury European brands exclusively, has also diversified its portfolio to include Changan passenger and light commercial vehicles from Chinese automaker Changan Automobile.
The most popular Chinese brand, as measured by sales, is Sinotruk which is sold by CFAO Mobility Kenya. A total of 608 units of Sinotruk models were sold in the 10 months ended October.
Foton was second with sales of 113 units in the review period. Foton commercial vehicles are sold by Mobikey Truck and Bus. Changan, sold by Inchcape, was third with 36 orders.
The growth of Chinese brands in the Kenyan market mirrors the trend in other markets such as South Africa and Latin America where their sales are rising partly due to their relatively cheaper prices.
Chinese automakers are targeting Africa and other markets as they face tariffs erected by Western economies keen on protecting their domestic car industries.
Previously seen as copycats, the leading Chinese vehicle manufacturers are now seen as having comparable and in some cases better technology compared to their Western and Asian rivals.
China has positioned itself as a leader in electric vehicles that are expected to steadily replace internal combustion models over the decades ahead.
