M a r k e t N e w s

Uganda car dealers peg prices to US dollar as shilling woes continue

Posted on : Saturday , 25th July 2015

 Big car dealerships like CMC Motors, Toyota Uganda, Nissan, Spear Motors and Tata all peg their rates to the dollar.

 
Mark Kass, the CMC Motors chief executive officer, said this week the decision to quote car prices in dollars was influenced by the high depreciation rate of regional currencies.
 
“East Africa’s currencies are depreciating at around two and half per cent every 10 years. For this reason, all our (CMC Motors) products will be priced in dollars, we have no alternative but to do that,” Kass said on Wednesday in Kampala.
 
The Uganda shilling has depreciated by more than 27 per cent this year, opening the week at Sh3,134, before falling to Sh3,314.87 by close of yesterday against the dollar.
 
Toyota Uganda national sales and marketing manager, Baisama Awori, said their pricing is pegged to the dollar, but explained the decision was taken before the shilling’s troubles.
 
Kass also expressed worry over the increasing lending rates in the country, predicting that businesses are likely to suffer significant losses. Interest rates have risen to a market average of 24 per cent after the country’s central bank increased its key lending rate from 13 per cent to 14.5 per cent.
 
“Interest rates are rising monthly. We plan to reduce our borrowing and increase our equity participation instead.
 
With the dollar hovering over the 20 per cent mark, borrowing is bound to stifle business growth,” he said.
 
The Ugandan market continues to be jittery on the back of declining market fundamentals, including rising inflationary pressures, depreciating currency and rising interest rates.
 
Spear Motors’ public relations officer, Noelina Nakiguli, said charging in foreign currency is “something we have been doing, especially on vehicles imported from the US”.
 
“For others, like Mercedes Benz, which are imported from Europe, we charge in euros.”
 
Agencies

Source : IN 2 EAST AFRICA
Featured Companies
  • Bajaj Auto
  • Nissens A/S
  • Bajaj Auto
  • Tire Group International, LLC.
  • dubaiexporters.com
  • Steelmate - Think safety think Steelmate

Complete List  

Advertisers in previous issue:

  • Product includes Braking, Steering, Suspension, Filtration, Transmission, Cooling, Heating, Electrical, Engine, Lubricants, Chemicals, Wiping, Lighting etc.
  • Our corporation is an important motorcycle production base in southern China.
  • We are producing six categories and nearly one thousand kinds and sizes of bias tyre, OTR tyre, radial tyre, Industrial tyre, agricultural tyre and solid tyre.
  • TOMAD International, Inc. is an export management company specializing in sales and marketing within the Middle East and Africa region.
  • Fuel Saver
  • Specialized in development, design, manufacture and sale of steel wheel of the truck and trailer and bus,etc.
  • Range,Service,Quality.
  • High quality spare parts for truks
  • Pensol Industries Limited has a wide range of products, both in Automotive and Industrial lubricants
  • TOTACHI INDUSTRIAL CO. LTD is an esteemed Japanese company that provides a comprehensive range of lubrication products for commercial and consumer applications.
  • Pro Media is established by a group of advertising sales people who have had over 25 years of experience in Taiwan’s two-wheeled industry.
  • ANAM Motors Co., Ltd., has been expanding its areas into many markets of Auto motive Spare Parts in worldwide from the establishment year of 1998.
  • Al Maroof Trading Company is one of the leading Auto Parts Dealers based in UAE and Pakistan.
  • It is the largest manufacturer of Premium Quality Lipe brand clutches for the commercial vehicles in India.
  • Trade Exhibition
  • Changzhou Guoshi Vehicle Accessories Co.,Ltd. is proficient in vehicle spare parts manufacturing and has involved a lot of capital, time and resources to make us prominent in this industry.
  • Kenya
  • GUANGZHOU YIFENG AUTO PARTS MANUFACTURING CO., LTD. is a professional manufacturer and distributor of automotive filters, mainly specializing in all kinds of oil filters, fuel filters and air filters.
  • GARAGE 1 has been purchasing cars, trucks and jeep in order to recuperate esclusively top quality used complet engines, gearboxes and mechanicals parts.
  • Cylinder heads
  • DM is one of the leading manufacturer specialized in reflective material in the world, which is only one manufacturer that not only produce personal safety production but also produce traffic safety production in China.
  • Supplier of vehicles, watercraft & aircraft worldwide.
  • The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance.
  • Meizhou Jinda Auto Parts Co.,Ltd. is a state-owned enterprise ,specializing in manufacturing auto clutch disc and brake.
  • Car garage equipment
Afrotrade International Marketing, Tel: +971-50-6285684
© 1998-2020 Afrotrade