Depreciation of the shilling and higher
import duty have driven several car dealers out of business as many
people fail to afford buying the vehicles.
They said
sales volumes have dropped 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 in January. C.M. Company Ltd President Mr
Charles Mtawali said the shilling depreciation has impacted negatively
to their business because it has pushed up car prices beyond the
affordability of many.
"We haven't sold a car in January," Mr
Mtawali said adding: "We have to stop importation to observe the
shilling's trading patterns before we make a second move."
The shilling
since last January depreciated by almost five per cent to over 1,636/-
as quoted by commercial banks.
The C.M. President acknowledged that
this is a low season as car buyers have a number of obligations to
attend, but this year is the hardest compared to the previous, as
shilling fall pushed prices to the roof.
"We are struggling to pay even
our staff salaries," he said.
BISMA Motors Sales Executive Ms Rachael
Kweka said the firm closed a showroom in Morocco area after sales were
so bad and workers have not been paid January salaries.
"It is not due
to competition but shilling's depreciation pushes car prices up by
almost 30 per cent. We receive good number of would-be-buyer
but price are driving them away," Ms Kweka said.
The favourite brand
like Toyota's Vitz, Carina, IST, Rav4, Noah; and Nissan's X-Trail prices
are untouchable. For instance a Vitz which was selling at 6m/- last
year today is going for between 8.5/- and 9.0m/- a piece.
Carina Si and Ti prices also have gone
up from around 8m/- to over 10m/-, Noah old model from 9.5m/- to
14.5m/-, Rav4 from 10m/- to 15m/- while X-Trail from around 15m/- to
over 22m/-.
Shaymaa Commission Agent Director Mr Mohamed Farid Mohamed
said car's import duty has gone up enormously to impact negatively sales
volume thus threatening to force them out of business.
Source: The Daily News, www.dailynews.co.tz, reported by Abduel Elinaza in Dar es Salaam.
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