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Auto Market: 1,800 New Cars Sold in Less Than Three Months

14 Mars 2012 - Défi Media Group

Auto Market:  1,800 New Cars Sold in Less Than Three Months

January 1 to March 10, 1800 brand new cars were sold. While new car sales take off, the market for second hand vehicles is declining. There were only 900 sales during the same period.

Dealers of used cars displayed a wry face. And for good reason, Japanese brands have lost favour among Mauritians. In less than three months (January 1 to March 10), only 900 cars were sold, while there are still two years there were 1,500 cars sold during the same period. The sale of used cars has been declining since 2011. It has indeed recorded the sale of 800 second-hand vehicles between January and March 2011. 

By cons, sales of new cars are a significant increase compared to last year. 1,800 cars were sold since the beginning of the year against 1,200 during the same period in 2011. It is mostly Asian vehicles, including cars of 1000 cc (Hyundai, Kia) and vehicles (4 x 2 and 4x4) that boosted the sale early this year. The reason given is that these vehicles are less expensive. 

"The market opportunity is indeed not very dynamic right now. People are turning more to the nine, "said Ashvin Mohabir, sales manager for Salim Motors. Zaid Ameer, President of Imported Vehicles Dealers Association, attributes this trend to the fact that new car prices are very competitive. "Some brands are cheaper than cars even more than the Japanese cars are more expensive with the yen, which rose from Rs 26 to Rs 36 in one year. 

For example, a Korean new car, the Hyundai brand, is sold at Rs 425 000 while a used Japanese car (minimum 3 years) costs from Rs 450,000 to mount, "he says. Even the "pick up" including 4 x 2 and 4x4 from China, available from Rs 500,000 and Rs 600,000 respectively, are cheaper than Japanese brands. "Some dealers have also stopped importing from Japan," said Zaid Ameer. 

This also explains the "lull" in sales of second hand cars to the economic situation "unfavorable". "There are a lot of uncertainty. So that people are cautious before making any purchase, "he says. However, dealers insist that Japanese cars have their place in the market. "Sales of new cars have also progressed due to the problem of radiation risks with Japanese vehicles last year. However, Mauritians are still loyal to Japanese brands (Nissan, Honda, Toyota ...). Customers think especially 'resale value' before buying a car. They will focus on brands because they are sure they will get a good price when they resell their vehicle. 

However, with little-known brands, they know they will not bargain, "says Nayim Beekawoo, responsible Marketing Co Ltd in FB Ghoora.

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