Simba Corporation on Thursday started selling a locally assembled car that retails at about Sh1.1 million ($10,000), targeting consumers of second-hand vehicles.
The new Proton Saga is a Malaysian model and becomes the latest car to be assembled locally joining Volkswagen Polo Vivo (by DT Dobie) and Peugeot (Urysia).
Proton Saga is an automatic car with an engine capacity of 1,300cc, making it a low fuel consumer with a warrant of five years, making it attractive to buyers of used cars.
Simba Corporation chairman Adil Popat said the new car would offer consumers great experience in addition to a range of after-sales services.
“The Proton Saga is competitively priced and will retail for around $10,000 + VAT, the Proton Saga has enhanced safety features, superb stability and braking performance, supreme style and eye-catching exteriors and interiors,” Mr Popat said.
“The Proton Saga also comes with a five-year warranty, attractive financing options with some of our major bank partners in Kenya and an extensive aftersales network.”
Simba Corporation is banking on the middle-class friendly price to sell some 5,000 units of the new car amid the Covid-19 economic meltdown that has hurt sales of new cars.
Sales of new motor vehicles dropped 26.4 per cent in the six months ended June, weighed down by the economic disruption brought by Covid-19 pandemic.
Data shows that the formal dealers including, Simba, Isuzu East Africa and Toyota Kenya saw their sales decline to 4,628 units in the review period compared to 6,294 units in the comparable period last year.
Most new cars in Kenya retail at more than Sh3 million, with the VW Polo Vivo among the more competitively priced at Sh1.7 million. The prices of used cars, on the other hand, start from as low as Sh600,000 depending on age, brand and condition.
Formal dealers like Simba and DT Dobie reckon that a combination of the low prices and warranty (of up to five years or 100,000 kilometres) is winning buyers for their budget car line-ups.