Automotive Dealers Fear "Big Bust"

11 years, 6 months ago - 3 September 2012, lexpress.mu
Automotive Dealers Fear "Big Bust"
If car sales are doing well, dealers are preparing for a "major slowdown" for the second quarter. " The economic outlook does not bode a good omen , "said Gilles Lalanne, president of the Motor Vehicles Dealers Association (MVDA).

For example, financial companies " will be more reluctant to offer loans, especially for companies which account for 2 / 3 sales . " The second quarter, often better than the first quarter, is therefore likely to decline by 20%.

According to the latest survey by the National Transport Authority (NTA), January-July, 4218 cars were recorded against 3224 last year for the same period. The bulk of the market is occupied by small cars. " This is the effect of the carbon tax , "says the president of the MVDA. Sales in the first place, there is the Korean Kia and Hyundai, with sales of 678 and 463 vehicles respectively, between January and July. " The Korean now occupy 30% of the market, compared to 12% last year , "says Gilles Lalanne.

This performance is due to several factors. First there is the price of cars. Moreover, these cars invoiced in U.S. dollars, have a favorable exchange rate. " The yen, which is equivalent to Rs 40 that the Japanese are less attractive , "it adds. 's strong sales of Kia cars are also part "in a worldwide trend," said a technician automobile. The Korean manufacturer is currently the only one to offer a 7-year warranty for these models. " This is a confidence factor , "says Gilles Lalanne. Better yet the design of their vehicles has been revised. " Besides being cheaper, these cars have made ??much progress. They are very equipped cars , "says the latter.

Since the beginning of the year, among the 14 485 new vehicles were added to the fleet of Mauritius, 3125 are "recond ".However, the sale of second hand cars imported experiencing a rise. And 2770 cars " recond " were sold between January and July 2128 only against the same period last year. However, if the sale of imported cars is a growing, importers point to the context in which they operate, who deny they believe a significant market share.

We can not import a car less than 18 months , "says Inteaz Badulla, director of Auto World. According to him, if someone wants to offer a newer car, so it is forced to turn to dealers. In addition, they are also likely to sell second hand cars. " This law protects dealers by limiting the market share we can take , "says Inteaz Badulla. It is in this sense that it intends to bring the case to the Competition Commission. Now he honed legal documents to that effect.