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One of the types of cars assembled by Quest Motors

Martin Kadzere Senior Business Reporter
THE removal of selected cars and buses imported by Government and schools from the duty free certificate facility will provide a significant boost to local assemblers, a leading car assembler said. The move, aimed to facilitate implementation of the Cabinet directive of 2011 compelling Government departments to purchase motor vehicles from local assemblers, will trigger increased orders, Quest Motors operations manager Mr Carl Fernandes said.

Notwithstanding the directive issued by the Office of the President and Cabinet through Circular Number 16 of 2011, compelling purchase of motor vehicles from local assembly plants, Government departments and parastatals continued importing.

Although the local motor vehicle industry has potential to manufacture light commercial vehicles and buses, this has, however, been impeded by challenges including limited access to working capital, antiquated machinery and unfair competition from imports.

“The move is a welcome boost for the industry,” said Mr Fernandes. “If everybody follows the rules, we should be able to produce 2 000 cars next year. But we need to make sure the rules are religiously followed and the industry will certainly come up.”

Last year, local assemblers sold a combined 100 pick-ups and twin cab vehicles while 4 000 units were imported. While the numbers are slightly better this year, “the industry has the potential of doing more” said Mr Fernandes. “And it’s not only the motor industry that will benefit, but even our suppliers of glass, spring, and tyres.”

He added that Quest has already started making orders for kits in anticipation of the huge demand. Analysts say the policy intervention by the Government was timely and could mark the turnaround of the industry.

“Obviously we should see increased sales next year,” said a research analyst with a local financial institution. “It is unfortunate that it took time for Government departments to implement the Cabinet directive but the Finance Minister took the right move to take away the privilege.

Taking away the privilege means importing will be very expensive and will force them to buy locally.” Zimbabwe’s automotive industry comprises four motor vehicle assemblers —Willowvale Mazda Motor Industries, Quest Motors, Deven Engineering and AVM Africa Limited.

Early this month, AVM Africa Limited and Beijing Automobile Assembly signed an agreement for the assembly of buses and trucks during Chinese President Xi Jinping’s historic visit to Zimbabwe.