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New car sales increase
Improvement. There has been a minimal improvement in the sales of new and luxury cars, which could be a result of a ban on cars older than 15 years. FILE PHOTO
What you need to know:
- Government had given used car dealers up to March 31 to clear all stock of cars older than 15 years.
- September had the highest sales in the period registering sales of 38 units. It was followed by December, which had 35 units worth Shs2b.
Kampala. New and luxury car sales grew in February to Shs1.79b compared to Shs1.47b in January.
At least 32 units were sold in February, representing some minimal growth from 25 units that were registered in January, according to data obtained from Uganda Revenue Authority.
The growth, some dealers said, could have been influenced by the ban on cars older than 15 years, which was implemented in July last year.
Government had given used car dealers up to March 31 to clear all stock of cars older than 15 years.
The ban has pushed up prices of different used cars, some of which are now at the same level with new ones.
Mr Gilbert Wavamuno, the Spear Motors sales director, told Daily Monitor sales in luxury cars had picked up with the company seeing a growth of between 10 and 15 per cent.
Ban on old cars
In July last year, the month in which the ban on cars older than 15 years was implemented, only 19 luxury cars worth Shs826.45m were sold.
However, URA data indicates, sales have been improving with a peak in September, 2018 where 38 units worth Shs1.56b were sold.
Mr Wavamuno also attributed the increase to the recovery in the economy, which he said had not been performing well since the year started.
However, he noted that the ban on used cars of more than 15 year has created a near match in prices with some buyers opting for brand new cars. According to URA data, a total of 205 brand new cars worth $2.7m (Shs10b) were sold in the period between July 2018 and February 2019.
September had the highest sales in the period registering sales of 38 units. It was followed by December, which had 35 units worth Shs2b.
