BBC:Why are cars so expensive in Ethiopia?It costs 3x more than the retail price in its country of origin
Posted: 01 Nov 2020, 08:27
This is my post on Ethiopia's skyrocketed price of cars for the third time. Even now the Abiy's led administration also imposed huge tax on imported cars. Very surprisingly, comparing cars's prices we can see huge differences between African countries' and Ethiopia's. Probably , I can say the price in Ethiopia is more or less three times more expensive than any African countries. If I can I will come up with a comparison tables.
what is these so called corrupted officials are planning? Even PM Abiy who was not elected by the people, is uninterested to this issue. As far as they get fancy cars, they don't care about others.
https://www.bbc.com/news/world-africa-38607986
Here it is BBC reports in 2017. The situation now is worse.
"Once all taxes are added to an imported car's price tag, it could cost nearly three times more than the retail price in its country of origin."
"I don't want to buy the Toyota Vitz," he says pointing to a row of small hatchbacks that have now become popular on Ethiopian roads.
These cost about $16,000 in Ethiopia; in neighbouring Kenya the same car costs not more than $8,000."
"It seems little wonder that Ethiopia has the world's lowest rate of car ownership, with only two cars per 1,000 inhabitants, according to a 2014 Deloitte report."
Read below what Chinese's assembly plant owner saying, they are only entitled to their profit. Chinese's assembled cars in Ethiopia are more expensive. why? how can they encourage local made cars while selling with expensive prices.
"At least half a dozen car assembly plants, mostly Chinese, have been set up in Ethiopia.
One of them is Lifan Motors, which was set up nearly seven years ago. One of its cheapest saloon models costs about $20,000 new.
It has a plant on the outskirts of the Addis Ababa which assembles about 1,000 cars a year - way below its capacity."
"For the company's deputy manager, Ma Qun, this is down to a lack of confidence in the local market from consumers.
Those who can afford imported brands, will choose them over local cars - despite the high taxes charged on used cars, he says.
"We are not satisfied. Our factory's capacity is about 5,000 a year but we sell just 1,000 units.
"It's because the policy doesn't restrict second-hand cars. So there aren't really many incentives for us to compete.
"We are waiting to see if there will be a change in the policy.""
what is these so called corrupted officials are planning? Even PM Abiy who was not elected by the people, is uninterested to this issue. As far as they get fancy cars, they don't care about others.
https://www.bbc.com/news/world-africa-38607986
Here it is BBC reports in 2017. The situation now is worse.
"Once all taxes are added to an imported car's price tag, it could cost nearly three times more than the retail price in its country of origin."
"I don't want to buy the Toyota Vitz," he says pointing to a row of small hatchbacks that have now become popular on Ethiopian roads.
These cost about $16,000 in Ethiopia; in neighbouring Kenya the same car costs not more than $8,000."
"It seems little wonder that Ethiopia has the world's lowest rate of car ownership, with only two cars per 1,000 inhabitants, according to a 2014 Deloitte report."
Read below what Chinese's assembly plant owner saying, they are only entitled to their profit. Chinese's assembled cars in Ethiopia are more expensive. why? how can they encourage local made cars while selling with expensive prices.
"At least half a dozen car assembly plants, mostly Chinese, have been set up in Ethiopia.
One of them is Lifan Motors, which was set up nearly seven years ago. One of its cheapest saloon models costs about $20,000 new.
It has a plant on the outskirts of the Addis Ababa which assembles about 1,000 cars a year - way below its capacity."
"For the company's deputy manager, Ma Qun, this is down to a lack of confidence in the local market from consumers.
Those who can afford imported brands, will choose them over local cars - despite the high taxes charged on used cars, he says.
"We are not satisfied. Our factory's capacity is about 5,000 a year but we sell just 1,000 units.
"It's because the policy doesn't restrict second-hand cars. So there aren't really many incentives for us to compete.
"We are waiting to see if there will be a change in the policy.""