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Thupeyo Muleya Beitbridge Bureau

Several car dealerships on the South African side of the border at Beitbridge have started closing shop or relocating to either Mozambique or Botswana due to low business.

The Herald understands that things took a turn when most people started buying vehicles directly from overseas and using other ports of entry to ship pre-owned vehicles via Mozambique or Tanzania.

Sources in South Africa said more than 15 dealerships had folded up, while others were contemplating moving to other countries.

The pre-owned vehicles are shipped in mainly via South Africa from Singapore, Japan and United Kingdom and the customs clearance process is handled at Malindi and Manica transit sheds in Beitbridge.

A sales manager at one of the biggest dealership, Wright Cars, Mr Clemence Mabidi, said where they used to sell over 40 vehicles daily they were now selling less than 20 weekly.

“Business is low my brother, some dealers have closed shop and moved to Namibia, Botswana, Lesotho and Mozambique,” he said. “Where we used to sale 40 cars daily we now record 10 vehicle sales.

“Though we have tried to run special offers, the situation is not improving. According to the few clients who still come through the payment of import duty in foreign currency is affecting their buying power.

“In addition, the car dealers are seeking new opportunities in other countries.”

Mr Mabidi said most people were now importing private cars which consumed less fuel as a result of the ongoing fuel crisis in the country.

He said though some people were losing jobs at the car dealerships, some have started relocating with their employers.

Another car dealer said he had to reduce car prices to clear stocks.

Major car dealers at the South African border include; Quest Royal, Wright Cars, Car Cade, Murree Motors, Noble Motors, Autonet, Jakes Auto and KDG.

Smaller cars cost around US$5 000, while bigger ones go for nearly US$15 000, with the amount inclusive of buying and import duty.

The duty is calculated at 96 percent of the buying price.

Zimbabwe Revenue Authority’s (Zimra) acting head corporate communications, Mrs Inzwirashe Chenai Muwonwa, said recently that between January 1 and April 30 this year, they processed 7 092 vehicles and collected $25 102 896,34 in revenue.

She said last year they handled 11 058 entries during the same period under review and received a total revenue of $33 821 838,94.