Tokumbo Cars Dealers Lament Poor Sales

As the Federal Govern
    ment is still contemplating of postponing the earlier scheduled commencement date of the new auto  policy, from  July 1, 2015, for  another six months, dealers of fairly used vehicles have been lamenting  over low sales since the beginning of the year.
Some dealers who spoke with our correspondent in Lagos recently, said the lull in the business was as a result of the devaluation of the  naira as the importers are  afraid to bring in vehicles into the  country considering the exchange rate as well.
According to them, the automotive policy that is yet to commence on imported vehicles and  the drop in exchange  rate are two key factors that are  militating against the  business as some of  the dealers are confused on what steps to take right now.
One of the dealers,  Mr. Stephen Uzonuoma,  said  since the beginning of the year, buyers were not  interested in making  any purchase, while the importers were also afraid of importing used vehicles into  the country.
“Every businessman wants to maximize his profits and the present situation  of  the country does not create  a friendly atmosphere for people in the  import trade  to slip in cars”, Uzonuoma disclosed.
He further hinted that since the year 2015, he had sold only two cars at  his  Ikeja based used  vehicles stand, noting that within the corresponding period  in 2014, he  sold 11 cars, stressing that the situation is alarming  and discouraging  as most dealers are closing their  shops to venture into other  businesses.
In his own remarks,  Chief Chukwuma Amadi, said some of the dealers are  confused  on how to go about with the  proposed new automotive policy, and appealed  to government to further extend the July 1, 2015 full implementation date in the interest of the masses.
Amadi also called on the government to manage  the situation of vehicle assembly  plants in the country and to also encourage vehicle  importation.
Meanwhile, the Federal Government has stated that it had no intention of increasing tariff on imported used vehicles until the assembly plants are in full operation.
The Director-General of National Automotive Council (NAC) Alhaji Aminu Jalai, made this assertion during a working  visit to the Nigeria shippers’ Council (NSC) in Lagos,  on  Friday.
Jalai  also disclosed  that  importation of used vehicles for commercial  ventures  would attract 70 per cent  duty  and levy from the commencement date.