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Abaymado
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BBC:Why are cars so expensive in Ethiopia?It costs 3x more than the retail price in its country of origin

Post by Abaymado » 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.
""

temari
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Re: BBC:Why are cars so expensive in Ethiopia?It costs 3x more than the retail price in its country of origin

Post by temari » 01 Nov 2020, 09:04

I think it is because cars need gas/petroleum to run and gas/petroleum is imported by hard currency and sold in birr in a highly subsidized price. Ethiopia already pays about 1 billion dollars for gas/petroleum import. More cars means more gas/petroleum import with dollars. So that is the main reason the government putting high taxes on cars to prevent them from getting in the country.
Abaymado wrote:
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.
""

Abaymado
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Joined: 27 Sep 2017, 21:56

Re: BBC:Why are cars so expensive in Ethiopia?It costs 3x more than the retail price in its country of origin

Post by Abaymado » 01 Nov 2020, 09:51

temari » 39 minutes ago

"I think it is because cars need gas/petroleum to run and gas/petroleum is imported by hard currency and sold in birr in a highly subsidized price. Ethiopia already pays about 1 billion dollars for gas/petroleum import. More cars means more gas/petroleum import with dollars. So that is the main reason the government putting high taxes on cars to prevent them from getting in the country."


What the hell are you talking about?

no way,, we know the government is telling us it has been imposing tax to encourage local made cars. This hiked price just exists only in Ethiopia. I will show some of the data obtained from Kenya,Uganda, Nigeria...

Can't you see what the Chinese's investor saying:

"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.""


Even selling with expensive prices, they are not satisfied.

People are paying for whatever price of fuel the government set. Even now the price of oil is very expensive compared to what they were been decade ago. But no one has not been complained. So why is the government so worried about the petroleum's price? People have the capacity to buy.
Last edited by Abaymado on 01 Nov 2020, 10:04, edited 1 time in total.

temari
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Re: BBC:Why are cars so expensive in Ethiopia?It costs 3x more than the retail price in its country of origin

Post by temari » 01 Nov 2020, 10:04

Do you know what fuel is and that it is imported by hard currency? That is the main problem. I know the government says it is to encourage local manufacturers but I think fuel is the main issue. What is the purpose of importing cars when you can’t provide enough fuel? Fuel becomes expensive and that will make all goods expensive too creating social and political problems.
Abaymado wrote:
01 Nov 2020, 09:51
temari » 39 minutes ago

"I think it is because cars need gas/petroleum to run and gas/petroleum is imported by hard currency and sold in birr in a highly subsidized price. Ethiopia already pays about 1 billion dollars for gas/petroleum import. More cars means more gas/petroleum import with dollars. So that is the main reason the government putting high taxes on cars to prevent them from getting in the country."


What the hell are you talking about?

no way,, we know the government is telling us it has been imposing tax to encourage local made cars. This hiked price just exists only in Ethiopia. I will show some of the data obtained from Kenya,Uganda, Nigeria...

Can't you see what the Chinese's investor saying:
"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.""

Even selling with expensive prices, they are not satisfied.

People are paying for whatever price of fuel the government set. Even now the price of oil is very expensive compared to what had been decade ago. But no one has not been complained. So why is the government so worried about the petroleum's price? People have the capacity to buy.

Abaymado
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Posts: 4617
Joined: 27 Sep 2017, 21:56

Re: BBC:Why are cars so expensive in Ethiopia?It costs 3x more than the retail price in its country of origin

Post by Abaymado » 01 Nov 2020, 10:09

Why is Ethiopia is solely affected by exchange currency? What about other African countries?

Abaymado
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Re: BBC:Why are cars so expensive in Ethiopia?It costs 3x more than the retail price in its country of origin

Post by Abaymado » 01 Nov 2020, 10:29

let's look prices in Kenya:

wonderful fancy cars are available with affordable price in Kenya which is 3 times more expensive in Ethiopia.

https://www.sbtjapan.com/sbt-kenya

1) Toyota probox van : total price 4,158 dollar.

The same car in Ethiopia can cost around 1.5 million birr(42,800 dollar )
2) Toyota Corolla Axio 2015: price 6.238 dollar
in Ethiopia this could cost 900,000- 1,200,000 birr(24,324 dollars- 32,432 dollars

3) Toyota Vitz 2007: price 5,555 dollars
In Ethiopia it costs around 600,000 birr(16,216 dollars)

Here is the exact price in Ethiopia from qefira:

https://www.qefira.com/cars

2010 Toyota Corolla : price= 1,150,000 birr (31,081 dollars)
2007 Toyota Vitz: price= 700,000 birr(18.918 dollars)

kibramlak
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Re: BBC:Why are cars so expensive in Ethiopia?It costs 3x more than the retail price in its country of origin

Post by kibramlak » 01 Nov 2020, 13:45

The car price in Ethiopia is insane. While restriction on gas consumption make some point, this can't be taken as the main reason. Because there are many other countries who depend on imported gas but yet the price cars is far less than in Ethiopia. Those so called policy makers are m0rons. Look how they made the roads in the city? You have to drive twice distance to find a turning point. Would that not consuming to much fuel ?

In my view, some entities are getting the benefits out of price hikes. The m0rons should have thought on road arrangements to cut down fuel consumption and reduce import taxes to contribute to lack of transportation. Another stupld institution is the road mnamn authority. Its filled with m0rons. They never invest or plan secondary roads. Obviously, everyone drives on one aixs, thus the roads are always congested.

Anyways, the m0ron policy makers have to vote to reduce import taxes on bew cars so that the city will have cleaner and healthy environment. The m0rons didnt realise that people are spending millions to buy old cars as alternative to new cars ....which otherwise they could invest on other businesses from money saved as a result of tax reduction. Honesty, Ethiopia is packed with m0rons and selfish scavengers. Very very sad.

Cigar
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Re: BBC:Why are cars so expensive in Ethiopia?It costs 3x more than the retail price in its country of origin

Post by Cigar » 01 Nov 2020, 16:09

Ethiopia has no hope concidering the priorities of some of you.
Ethiopia is dirty poor. It is the poorest country in Africa concideting the 85% of its population is living like animals with no cloths on their back, no schools, no clinics and instead of trying hard (working from outside towards inside like Eritrea) you are shooting an invisible target for the benefit of few ethiopians who reside in few of your cities.
What is wrong with you?
Stop bragging by a 13 miles light train track or glass and brick high rise building which can only benefit very, very, very few.
Focus to bring the gaps between your population
People are waking with plates and horns in their lips and your excuse is "it is their culture". No it is not. It is humanitarian abuse.
Sorry, it is the truth.
And you have nerves to make jokes about Asmara's delapilated buildings putting aside what an amazing job Eritrea did to its rural area residents while putting Asmara in the tail ends of renovation.
I know you agree with what I said, but only because an Eritrean is telling you such, you still will challenge me and talk the garbage you talk about Eritrea.

Dawi
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Re: BBC:Why are cars so expensive in Ethiopia?It costs 3x more than the retail price in its country of origin

Post by Dawi » 01 Nov 2020, 16:57

Cigar wrote:
01 Nov 2020, 16:09
Ethiopia has no hope concidering the priorities of some of you.
Ethiopia is dirty poor. It is the poorest country in Africa concideting the 85% of its population is living like animals with no cloths on their back, no schools, no clinics and instead of trying hard (working from outside towards inside like Eritrea) you are shooting an invisible target for the benefit of few ethiopians who reside in few of your cities.
What is wrong with you?
Cigar

I have to give it to you! You walk the talk!

Despite of gross discrepancy in your post regarding your former country, I get your point!

That is why Eritrea is empty! Because, you're "working from outside towards inside". :lol:

Last time we checked, it was your cousins who are flocking daily to the "poorest country"!

Keep smoking your stinky cigars dude!.

You've no Shame!


Check the following out!!

By Habte Hagos

Eritrea Focus has received very worrying information that the Ethiopian Federal Government is in the process of adopting “Exclusion Criteria” for Eritreans seeking asylum in the country. Our sources have asked to remain anonymous, but we regard them as credible. The “Exclusion Criteria” are currently being applied at “collection centres” i.e. refugees comps where asylum seekers are placed for refugee status assessment.

The “Exclusion Criteria” include the following. They are not exhaustive and apparently not officially documented either, although they are being applied:

Unaccompanied and separated minors;
Persons within the age of conscription in Eritrea [This criterion seems to be all enveloping as almost all Eritreans from their teens are indefinitely conscripted to the National Service];
Persons who access Ethiopia to seek medical care;
Persons who have crossed the border on repeated occasions, regardless of whether or not they have sought asylum in Ethiopia before; and
Persons wishing to reunite with family members in a third country.
These criteria are so severe that they appear to amount to the rejection of all Eritrean claims for asylum. It is far from clear what sanctions the Ethiopian government intends to apply to Eritreans who fail the five tests.

If these criteria are brought into force, they would not only violate the Ethiopian government’s legal requirements under the international conventions relating to refugees, they would be a reversal of Ethiopian policy dating back many decades. Both Eritrea and Ethiopia have a history of giving sanctuary to those who flee persecution and injustice. They would also severely disrupt family ties, trade and social relations among villages scattered all along the 1,000 kilometre long border.

As part of the “Exclusion Criteria” the number of entry points to Ethiopia for Eritrean asylum seekers has been reduced from 18 to 3. The closure of Hitsat refugee camp that is designed for 11,000 refugees, but currently hosts 18,000 Eritreans, is expected to proceed next month with the refugees moving to Mai Ayni and Adharush. These camps are already badly overcrowded , far exceed their limits and facing acute shelter shortages. If the Ethiopian security forces attempt to enforce the closure of Hitsat they could provoke stiff resistance from the camp’s inhabitants.

The most immediate concern is vulnerability of refugees to the novel coronavirus in overcrowded facilities. Furthermore, the closing of Hitsats may lead to increase in secondary migration, which will endanger the Ethiopian Government’s action to contain the spread of COVID-19.

For additional information, please refer to the attached document “Looming closure of 11.000 -person refugee camp in the Tigray region of Ethiopia amid COVID-19 threat” – below.

Digital Weyane
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Re: BBC:Why are cars so expensive in Ethiopia?It costs 3x more than the retail price in its country of origin

Post by Digital Weyane » 01 Nov 2020, 17:46

TPLF leaders made car purchases very expensive in Ethiopia to help the wealthy Adwa natives become the only car owners in the country. It was an apartheid system that elevated TPLF from Adwa over the rest of the population. PM Abiy ended that in Ethiopia, but we Tegaru are still fighting to end the Adwa apartheid system in Tigray.

Cigar
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Re: BBC:Why are cars so expensive in Ethiopia?It costs 3x more than the retail price in its country of origin

Post by Cigar » 01 Nov 2020, 17:58

Dimwit, first of all our refugees who are in tigray are deceived by Obama's misguided policies and as any people of the world they too want to go abroad for a better life....like the ethiopians.
Now, since two years ago when we quarantined woyane in mekele rat holes the border is close shut and there is not a single Eritrean refugee who crossed your border. The refugees you are talking about who you said Ethiopia will try to relocate are the ones who were cash cows for woyane....the ones who were feeding your moms and siblings with the funds which was going to them...the 10s of thousands of tegarus who are now languishing in Yemen and Saudi who were residing in the Eritrean refugee camps in tigray who now due to the closure of the camps fled the 'honey region's tigray.
Doesn't the crying of you tegarus and woyane why the Eritrean refugees get relocated to Ethiopia tell you that you don't want to lose your cash cow? I mean why do you care where they get their meal as long as they get it? Doesn't that relife your pressure? You should be happy that some one else shoulder the pressure.
And soon once we burry woyane, those refugees who got relocated to Ethiopia and the few ones who been in tigray will come home.
If you freaking believe that any national will go to tigray to reside or employed you must be really an idiot.
We soon will cut your cash cow tits and expose your evil nature.
If the USA puts a policy of free asylum to tegarus the whole agame population would have fled to the west. Even with out that policy over 60% of the refugees you are talking about are your agame people applying as Eritreans. You could even be one of them.
But yes, Eritrea is making the lives of the rural area of Eritrea very comfortable while going and do the superficial fixes of the major cities and towns.
Time is approaching that you dirty bast*ards agames to say:
"How did we get that stupid".
All the propaganda and the fake history your shifta woyane taught you in your schools will be exposed.
Come on man, your young tegarus actually believe that tplf gave Eritrea its independence. They really believe that EPLF didn't defeat dergue and didn't sat their ungrateful as*ses in Arat kilo, etc etc.
It is all about false indoctrination.

Cigar
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Posts: 12407
Joined: 19 Apr 2010, 00:03

Re: BBC:Why are cars so expensive in Ethiopia?It costs 3x more than the retail price in its country of origin

Post by Cigar » 01 Nov 2020, 19:31

Dimwit, this is how your thief, shifta woyane brainwashed your outdated meatloaf agame brains.

https://m.facebook.com/story.php?story_ ... 9087597215

Abaymado
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Re: BBC:Why are cars so expensive in Ethiopia?It costs 3x more than the retail price in its country of origin

Post by Abaymado » 13 Nov 2020, 16:33

Cigar wrote:
01 Nov 2020, 16:09
Ethiopia has no hope concidering the priorities of some of you.
Ethiopia is dirty poor. It is the poorest country in Africa concideting the 85% of its population is living like animals with no cloths on their back, no schools, no clinics and instead of trying hard (working from outside towards inside like Eritrea) you are shooting an invisible target for the benefit of few ethiopians who reside in few of your cities.
What is wrong with you?
Stop bragging by a 13 miles light train track or glass and brick high rise building which can only benefit very, very, very few.
Focus to bring the gaps between your population
People are waking with plates and horns in their lips and your excuse is "it is their culture". No it is not. It is humanitarian abuse.
Sorry, it is the truth.
And you have nerves to make jokes about Asmara's delapilated buildings putting aside what an amazing job Eritrea did to its rural area residents while putting Asmara in the tail ends of renovation.
I know you agree with what I said, but only because an Eritrean is telling you such, you still will challenge me and talk the garbage you talk about Eritrea.
What the fk is that? No way, he wrote this nonsense probably when he was drunk. Meaningless and incoherent message.

Tiago
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Posts: 3337
Joined: 30 Jul 2018, 02:09

Re: BBC:Why are cars so expensive in Ethiopia?It costs 3x more than the retail price in its country of origin

Post by Tiago » 08 Nov 2021, 20:55

There are individuals benefiting from this insane tax on imported used cars.
Used cars are bad for the environment and cost more in maintaining them.
The government should encourage new cars imported with 10% to 10% tax on its original price.
Ban importation of used cars more than 5 yrs old .
Impose 30% to 40% tax on cats upto 5 years old.

Road and registration tax ,infringement fines are more than enough and time to do away with this disastrous
Tax on motor vehicles.

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