Car dealerships commend Government move to address grey imports

Judith Phiri, Business Reporter

LOCAL car dealerships have said the ban on imports of second-hand cars that are more than 10 years old from the date of manufacture, was a welcome development that allows them to realise growth in their businesses.

In March, the gazetting of Statutory Instrument 54 of 2024 cited as Control of Goods (Import and Export) (Commerce) (Amendment) Regulations, 2024 (No. 10) deleted the old 2021 need for an import licence for older cars and replaced it with a pure ban plus a re-export requirement.

The SI states that second-hand vehicles aged 10 years and above from the date of manufacture shall not be imported, while any second-hand vehicle prohibited under this sub-section shall be re-exported by the owner of the said vehicle at his or her expense.

In an interview recently at the Clover Leaf Motors Suzuki launch in Bulawayo, CFAO Motors Zimbabwe, general manager Ms Tammy Hein said the ban was a welcome move that ensures local dealerships businesses are protected.

“The reason why 10-year-old vehicles were finding their way into the country is because they were no longer of any use in the country they are sent from. The 10-year-old vehicle is often too old already and a lot of other African markets have already put a restriction on five-year-old vehicles also,” she said.

“Our neighbouring countries have also put in a restriction of no second-hand vehicles being imported. This helps develop the country with manufacturing and assembly and promotes the automotive industry, rather than bringing in old cars that have been rejected from the first world.”

Speaking on their partnership with Clover Leaf Motors to launch the new brands of Suzuki vehicles in Bulawayo, she said their goal was to ensure not only people get affordable cars, but their dream cars as well.

“Clover Leaf Motors is certainly no stranger to us. We have had a multi-brand relationship with them for more than 10 years now through different brands. We are in absolutely no doubt whatsoever that we have selected the best partner with the best capabilities to take this brand into Bulawayo and to support our customers here,” she said.

Ms Hein said financial unavailability had made motoring affordability very difficult in the past, while with their brand they have taken away the element of people being forced to buy into the imported second-hand car market.

Ms Hein said through the brand, they have opened up the opportunity for the small to medium enterprises (SMEs) sector, corporates and individuals to access cheap motor vehicles.

“With full manufacturer support, we can provide a three-year warranty, with full parts supply, trained technicians and backup to all. The average stock holding that we have at any given time is 150 units. This gives our customers the choice not only for the vehicle they want to have or like to have, but the ones that we need,” she said.

Clover Leaf Motors group operations executive, Mr Admire Ndumo said the ban on grey imports of cars that are more than 10 years old had been long overdue.

“Perhaps the background of why the Government is encouraging people to buy vehicles that are 10 years and below is because most of those vehicles are dumped from other countries into our market. So the advantage that it brings to us as car dealerships is that people can buy cheaper new vehicles rather than an ex-Japanese vehicle which will probably break down after a while,” he said.

He said they were excited about the partnership between Clover Leaf Motors and Suzuki, where they had about 150 units in the bonded warehouse.

Mr Ndumo said their goal was to make sure that any potential vehicle buyer in Bulawayo walked into the showroom and got the vehicle of their choice in a few days after they had paid. “The cars are affordable, you will find that there are a lot of grey imports on the roads. Most people buy them because that’s what they can afford, but with Suzuki, we are bringing affordable vehicles which are durable and have got warranty making them serviceable,” he said.

He said most of the showrooms of other car dealerships in Bulawayo wait for a vehicle to come from Harare, but for them, they will make sure that the vehicles are available in the city.