adminMy hope is that the car will be on display at the Zimbabwe Motor Show that begins tomorrow.
The return of the Mazda 3 is, however, only a drop in the ocean for Zimbabwe’s motor industry and a routine visit to Buy Zimbabwe partner WMMI revealed that a lot still needs be done to revive the industry.
WMMI chief executive Engineer Dawson Mareya believes the country needs a motor industry policy to anchor the growth of the industry.
The man, whose passion is generally for the entire industry beyond just Mazda, is calling for the adoption of a policy, which will have the same impact on Zimbabwe’s motor industry as is the case with the South African Motor Industry Development Plan (MIDP).
The MIDP was introduced in 1995 and is widely regarded as one of the best post-apartheid trade and industrial policies in South Africa.
The South African government did not only see this as a way of creating a competitive industry both locally and internationally but also as a way of propelling South Africa’s motor industry into the global economy.
South Africa’s MIDP creates substantial incentives for players to invest and to produce for export and for the domestic market.
The programme, which is due for possible extension this year, comprised four principal elements: A gradual reduction in import duties on both vehicles and components.
An export-import complementation scheme under which vehicle and components exporters can earn tradable “Import Rebate Credit Certificates” (IRCCs) to offset duties on imported vehicles and components.
Access to the standard duty drawback program for exporters, under which all import duties paid on components and intermediate inputs used in exported vehicles and components, can be rebated and a duty-free allowance on imported components of 27 percent of the value of vehicles produced for the domestic market.
Now if this sounds like written hogwash, think again. It has had the net effect of heavily discounting imported vehicles from South Africa up to 40-45 percent affecting the competitiveness of the local brands.
Engineer Mareya revealed that the Ford Ranger is selling cheaper in Zimbabwe than it is in its source market South Africa because of incentives under MIDP, which brings us to the question of dumping, which I shall talk about later.
We have observed that the Ford Ranger has become very popular with a number of companies who are conducting promotions, taking over from its closest rival the BT (Better Truck 50).
I guess the price dynamics might be an explanation, however, I feel it is also a question of perception.
Some Zimbabwean motorists have questioned the integrity of the BT50 on the road while the same car has outsold the Ford Ranger in the first quarter of 2012 in
Australia for example. While the question of perception might come into play, I believe there are other underlying issues that have affected the competitiveness of the BT50 against the Ford Ranger and other trucks in 4×4 segments such as the Toyota Hilux and Nissan Navara.
Engineer Mareya has often said that it is because the playing field is not level as there is no policy that clearly supports the procurement of local vehicles.
Once again I will say this for good measure, Government must take the lead. Government should go beyond just buying the BT50 as a pool car but as an assigned vehicle for senior officials.
During the Buy Zimbabwe conference held last month National Indigenisation Economic Empowerment Board chairman Mr David Chapfika mentioned that senior officials in Korea use the Hyundai simply because it’s their own brand.
It is a question of pride for these guys. They will support their own. In France, it is the Renault. In India, they have got the Mahindra. So what prevents us?
Surely, we cannot justify the lack of capacity as one of the reasons for not doing like wise.
During our visit to WMMI, Engineer Mareya said that his company has the capacity to produce 9 000 units a year on a single shift.
Quest Motors, another key local assembly for vehicles in Zimbabwe, also has the capacity to produce 9 000 units.
Right now 140 vehicles are parked in the WMMI yard with no takers. Both Quest and WMMI also have the capacity to produce low-cost vehicles for low-income earners but because the motor industry is a volume game, current volumes cannot justify major investment into these lines.
Now, if I may conclude by touching on the issue of dumping in the motor industry.
During the Buy Zimbabwe conference, Mr Chapfika spoke passionately against the sprouting of car sales across the country.
The vehicles in these sheds represent real value in US dollars, which can be invested into reviving our motor industry.
In simple terms, the grey imports are effectively stealing our hard earner foreign currency and shipping it to Japan and other such markets.
We need not only think about the investment being smuggled out of the country but also the jobs being lost in our motor industry.
Currently, WMMI employs 194 workers when not so long ago it had over 500.
The major players in the motor industry — WMMI, Quest, AVM and Deven — have come together and voiced their concern on the issue of dumping, which shall be tabled before the Competition and Tariff Commission.
It is Buy Zimbabwe’s hope that the case shall be taken seriously and awarded the attention it deserves.
Till next week . . . May God bless us all abundantly.
- Robert Garai Muganda is the Media and Communications Executive of Buy Zimbabwe. He can be contacted on: email: [email protected] mobile: 0772 714 233 join us on Facebook and Twitter: @buyzimbabwe campaign.
Online Reporter