Why is there a rising demand for ILCVs in Kenya?

in #light3 months ago

A commercial vehicle is utilised specifically for commercial purposes, of which transporting goods from one point to another is typically the main priority. Intermediate and light commercial vehicles are crucial to businesses and commercial operations in Kenya. They fill an important gap in the country’s automobile industry.

With infrastructure development projects underway and a growing economy, the country's intermediate and light truck market is evolving quickly. Let us understand the factors contributing to the rising demand for intermediate and light commercial vehicles in Kenya and explore the factors to consider when buying one.

Factors driving the demand for ILCVs in Kenya

Kenya’s intermediate and light commercial vehicle segment has grown significantly in the last 10 years. Multiple factors add to this growing demand for ILCVs in the country’s markets:

  • Rise in e-commerce platforms

E-commerce is growing quickly in Kenya. Consequently, the growth of e-commerce platforms has resulted in higher demand for efficient last-mile delivery solutions, where ILCVs play a crucial role.

  • Demand from agriculture

The country’s agriculture sector is considered a key demand driver. This is because farmers and cooperatives purchase intermediate and light commercial vehicles for transportation.

  • Economic growth

Due to the development of transport infrastructure and economic growth, businesses need intermediate and light commercial vehicles to provide services and move goods.

  • Availability of financing options

The availability of favourable financing options through banks and non-banking financial companies has also made it easier for businesses to buy intermediate and light commercial vehicles.

  • Rapid urbanisation

Rapid urbanisation is also increasing the demand for the transportation of goods within and between cities, driving the need for agile and versatile ILCVs in the country.

Factors to be mindful of when buying a commercial vehicle

When looking for the right commercial vehicle, consider the following elements:

  • Understand the vehicle’s purpose

If you want to pick the right vehicle, be clear about the vehicle’s purpose for your business. Consider the nature of your operations and the services you provide. These help you determine the kind of vehicle you should look for.

  • Determine maintenance

Commercial vehicles are rigorously used daily. Hence, it is best to consider ease of maintenance and durability. For example, if you want to know the TATA LPT 810 price, you should know that this versatile truck boasts a long life and low maintenance cost.

  • Assess payload capacity

Engine size and payload capacity are crucial factors when purchasing commercial vehicles.

Conclusion

Several factors contribute to the rising demand for intermediate and light commercial vehicles in the Kenyan market. Commercial vehicles are typically believed to form the backbone of the country's transportation infrastructure. However, investing in a commercial ensures it fits your requirements and finances.