“The car in front is a Toyota” is a popular advertising slogan that was coined in 1997. For a long time, it has held true in Kenya; until recently.
Weaving through traffic punctuated with Japanese autos are sleek, head turning luxury autos wearing badges that vary from BMW, Mercedes, Range Rover, Audi, Porsche and Chryslers.
Kenya’s luxury auto market is excited and is admitting new players while existing brands expand their showrooms and dealerships.
The latest to set up shop is German automaker Porsche that set up their luxury auto showroom at the exclusive Sameer Business Park, along Mombasa road in Nairobi.
This development follows the opening of a modern showroom in Nairobi’s Westlands area by motor dealer RMA Kenya Limited, as the official Jaguar Land Rover dealer.
These entries have been setting the tone for renewed competition in the high-end auto market.
The recent introduction of the Mercedes 500 S class by DT Dobie (K) Limited – the local dealers for Mercedes Benz in Kenya – has only helped fuel what is now cut throat competition for the budding luxury auto market in Kenya.
“While the Porsche is mainly recognized for its sporty SUV, the Cayenne, we offer the Range Rover Evoque, Range Rover Sport, and the Range Rover Vogue,” Sanjiv Shah, Chief Executive Officer of RMA Motors, Kenyan franchise holders for the Land Rover Jaguar told AFKInsider.
RMA Kenya, which holds the exclusive resale franchise for Jaguar and Land Rover vehicles, has the Jaguar F-Type convertible.
Three models of this auto are priced at between $156,000 and $200,000. RMA also sells the Range Rover Sport which is among the top league of luxury autos in Kenya.
“With poor road conditions here, the Range Rover Vogue represents a better value for money, more versatile offering, literally a ‘go anywhere luxury limousine’,” said Shah.
Luxury in Rough Terrain
The list of luxury vehicle models available in the Kenyan market today include Mercedes Benz, Cadillac Stretch Limousines, Range Rover, Land Rover Discovery, Land Cruiser, Hummer, BMW 5 and 7 Series, Audi Q7, and Jaguar.
“We are dominant in the luxury SUV segment sector and making progress with our Jaguar range. The Jaguar range is now available from under 6 million shillings ($67,000) for a new XF Jaguar representing probably the best value luxury saloon available in the Kenyan market today. Kenyans love luxury and exclusivity,” explained Shah.
Another player to watch is DT Dobie Kenya Limited, the franchise holder for Mercedes-Benz. Its recent launch of the Mercedes Benz 500S – that retails for between $220,000 and $301,000 – is already causing excitement in the top of the range luxury models segment.
“This auto is not only a status symbol but is also elegant and one of the safest autos in the world today, something that most people do not know,” Stavros Diamantidis, General Manager of DT Dobie Kenya Limited told AFKInsider.
The decision by DT Dobie to unleash the Mercedes Benz 500 S class follows growing demand by a wealthy class of Kenyans that is rapidly expanding.
“The middle class is growing and so are preferences and tastes hence the need for more fresh models. Although the luxury market is growing, we still see no need to introduce luxury models such as the Cadillac,” Rita Kavashe, Chief Executive General Motors East Africa Limited (GMEA) told AFKInsider.
The firm is instead concentrating on the commercial segment with its functional utility vehicles.
“The middle class is now able to own a Mercedes Benz and other luxury models hence the need to introduce more exclusive models for the upper income groups,” said Kavashe.
The Mercedes Benz 500 S has the magic body control option, a dynamically oriented suspension system that adjusts for undulations or bumps in the road before the auto passes over them. This is made possible by the combination of the active springing of the suspension system with the road surface scan function.
“With the aid of a stereo camera the condition of the road surface ahead is captured in detail including potholes as one drives. It also a navigational system with a Kenya mapped installed for those not familiar with locations in Kenya,” said Diamantidis.
DT Dobie, which is the dominant player in the luxury auto market, is projecting sales figures of between 3 and 4 500S models per month.
Although being able to offer competitively priced and affordable models will determine who cracks Kenya’s luxury auto market, the East African country offers a promising stream of income to such auto makers.
According to consulting firm Capgemini’s latest World Wealth Report (2012), Africa’s population of high net worth individuals rose by 9.9 percent, which represented the second highest growth rate globally after North America. It was also more than the global average growth rate of 9.2 percent.
