Car Sales Drop Due to Shilling Depreciation

R.B · 2013-02-16T22:12:41+00:00

USED cars are sold through a variety of outlets, including franchise and independent car dealers, auctions. But private party sales are facing tough going. The business enshrine in the last one decades after economic liberalization to now put the number of cars in the road to over 1.2 million, hangs on balances. The 'Daily News' spot survey reveals out that the second-hand auto dealers are facing tough times pushed by the shilling depreciation and high import duties to drive car prices out of customers' affordability. The dealers, estimated between 70 and 100 in Dar alone, are also concerned about the taxmen--Tanzania Revenue Authority (TRA)--phenomenal of uplifting prices despite the fact that the values are posted on the most international dealers websites. They said the business "is very tight" as sales volumes have dropped by between 40 and 60 per cent in the last two to three months. Last January dealers sold an average of 10 cars compared to four of this January. However, TRA said the numbers of vehicle in the streets have increased by about 70 per cent in a single year (2011), reflecting an emerging middle class as a result of improved economy and social welfare. Tanzania Revenue Authority (TRA) data shows that 93,009 vehicles of different categories-- buses, heavy duty trucks, light trucks, mini buses and saloons--were registered by the end of 2011 compared to 55,144 in 2010. The data, excluding government, police, army and donor funded vehicles, shows that 67 per cent of registered vehicles in a single year were light passenger vehicles with carrying capacity of less than 12 passengers--the saloon cars. On the other hand, the C.M. Company Ltd President, Mr Charles Mtawali, said the shilling depreciation has impacted negatively to their business because it has pushed up the cars prices beyond the affordability of many in 2012. "We haven't sold a car in January," Mr Mtawali said adding, "We have stopped importation to observe the shilling trading patterns before we make a second move." Since last January, the shilling depreciated by almost five per cent to over 1,625/- as quoted by commercial banks. This decreases huge gap if one wants dollars in bulk. The C.M President acknowledges this is a low season as car buyers have a number of financial obligations to attend to. This year, however, is the hardest compared to the previous one as the shilling's fall pushed prices to the roof.

Thread starter R.B
Start date Feb 17, 2013

R.B

JamiiForums uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.

Accept Learn more…

Back

Top Bottom

Forums

New posts

Car Sales Drop Due to Shilling Depreciation

R.B

JF-Expert Member

Our Community

Regional Communities