Deluxe Trucks and Buses East Africa, the distributors for Ashok Leyland Trucks and Buses in East Africa, has seen a 50% increase in sales since the beginning of the year.
Despite the current tough economic climate, the trucks and buses market in Kenya remains competitively attractive for growth, particularly in the value-driven segments. The industry, valued at about Ksh. 258 billion (USD 2 billion), has grown in recent years driven by infrastructure development, urbanization and the expanding e-commerce sector.
However, faced by challenges such as economic pressures, new taxes, political protests, volatile currency exchange rates, and increased fuel costs, the market has witnessed a substantial 17-18% contraction compared to the same time last year.
According to Hussein Kamal the recently appointed General Manager for Deluxe, this is a reflection of the the broader difficulties being experienced across the economy, including business struggling with affordability, access to capital, and high operational costs.
“This growth indicates the potential within the market for value-oriented products in the light and intermediate commercial vehicles segments. Ours may be modest numbers, compared to the competition but we believe we have great opportunities for growth over the next one year. We expect a period of consolidation in the short term, with growth prospects improving as the broader economic situation stabilizes”, explained the cautiously optimistic Kamal.
Additionally, Kamal believes the demand for trucks and buses in Kenya remains robust due to competitive pricing, high quality, and comprehensive after-sales support, all key market drivers where Ashok Leyland excels. Positioned as a challenger brand, the Ashok Leyland offers up to 5-years or 500,000-kilometer warranty, making it an attractive alternative in the tough economic environment.
In addressing high operating costs that tend to elevate the total cost of ownership, customers can access up to 95% financing or re-financing. This is through strategic partnerships with major commercial banks thus addressing issues of affordability.