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GOVERNMENT is working on a motor vehicle policy which will address the various challenges faced by local car assembling companies, the Minister of Industry and Commerce, Cde Mike Bimha, has revealed.
The minister said this on Wednesday during a tour of distressed industries in Mutare. The tour was part of the three-day Confederation of Zimbabwe Industries congress programme, which ends today (Friday).
“As Government we are working tirelessly to see how best we can support our local industry, which is why I am here to learn and see what is on the ground.
“We are working on a motor vehicle policy and it is work in progress.
“We are consulting widely because we want to come up with the best policy.
“Once the policy is in place it becomes easier to achieve action in any problem area,” said Cde Bimha.
The motor vehicle policy comes at a time when the local motor vehicle assembling companies have decried the lack of Government and corporate support in promoting their products.
The country’s leading motor vehicle assembling companies, Willowvale, AVM Africa and Quest Motors, have in past years all come out lobbying for Government intervention in the form of local procurement quotas.
Quest Motors managing director Mr Tarik Adam implored Cde Bimha to declare local procurement quotas to help them stay afloat.
Mr Adam said the situation was now so dire for the companies that Government should step in and put in place protectionist measures to assist the local vehicle manufacturing companies to stay in business, also taking into consideration the large number of people under their employment who will be affected if they shut down.
“We have already engaged other downstream companies that stand to benefit from our services once we are fully operational.
“There are companies that will supply leaf springs, filters like our own Kenrose Filters, the silencers for the Foton brands, the glasses, to mention a few, so the downstream effect is great.
“We should be employing about 1 500 workers in a shift but we only have 150 at the moment so you can imagine the huge employment benefits if we become fully operational,” said Mr Adam.
Quest Motors is currently producing Foton, Chery and JMC vehicle models which they say are cheaper for the local market, but still equal to the task like any of the latest Toyota, Mazda, Nissan or any of the popular trendy international models.
Quest Motors last year also signed an agreement with a Chinese bus manufacturing company, Zhongtong, the manufacturer of the Zupco buses, to manufacture their replica buses, but to see through the deal Mr Adam said they needed complementary and supportive market in place.
Quest Motors is currently running a campaign, ‘‘Buy local save jobs’’ and implored the Government to think of the thousands that will be jobless if all the three major local assembly companies were to shut down.
Cde Bimha added that the motor vehicle policy would address all the current constraints in the industry like the poor local market and competition from second-hand vehicles being imported.
Online Reporter