Automotive: Closure of several showrooms- Warranty costs on Japanese vehicles

They demand the abolition of this measure."Japan is back in business."This is the conclusion of Zaid Ameer, Chairman of the Dealers of Imported Vehicles Association. 

The numbers speak for themselves. In May, Japan exported 77,000 vehicles worldwide. The country gradually finds its stride after being hit by a tsunami and a devastating earthquake on March 11. However, in Mauritius, there was only eleven vehicles imported from Japan in May.

Reason given: Of the 65 dealers of second hand vehicles in Mauritius, about fifty of them are unable to provide the bank guarantee of Rs 100,000 required for each vehicle imported from Japan. This measure was imposed by the Mauritian authorities in April as a result of radiation risks in Japan. 

"Since then, many showrooms have closed. They do not have the financial means to import a number of vehicles. These dealers are no longer operating until the situation improves, "said Farhad Ghoor, director of FB Ghoor Co Ltd."It's quite normal that the showrooms are closing. The recommended amount is exorbitant. At our level, we perform and imports by 'batch'. Indeed, it is not easy to import all vehicles at once with this measure, "adds Abdoolah Din, 'Manager' Salim Motors. Hence the insistence of Zaid Ameer for this measure to be abolished.

"It's unfortunate that this guarantee requires us while beginning to resume normal business in Japan. The government must put a stop to this financial barrier. Especially since we already pay Rs 14,000 for the radiation tests performed on every vehicle that we import from Japan, "is it out. Abdoolah Din, 'Manager' Salim Motors, complains in the same breath slow the Ministry of Commerce to approve certain documents related to the delivery of imported vehicles."This delay adds to the cost of the vehicle," said he. All of this drives up the prices of vehicles. From March to date, a Japanese car costs around Rs 25,000 to Rs 50,000 more expensive. "This explains the current slump in sales now," says Zaid Ameer.