AUTOMOTIVE BIG PICTURE
AUTOMOTIVE & AVIATION By Joel Henry
The automotive sector in Trinidad and Tobago is made up of new and foreign used vehicle dealerships. The new car market is controlled by a small group of franchise holders for US, European, and Asian brands. The foreign used vehicle market consists of many small and medium-sized dealers. Because of the nature of the industry and constraints on the market at present, the number of dealers can range anywhere between 377 (the total number of authorised used car dealers) and half that amount.
SECTOR IN TRANSITION Though Trinidad and Tobago remains a regional leader in the automotive sector, in the 2017/2018 period, several factors have had an impact on its performance. Firstly, the economic downturn has played a part in the car buying habits of the population. The sector has also been affected by Government’s 2017/2018 Budget, which contained several policies that directly affect both new and used car dealers.
BUDGET 2017/2018 ON CARS IMPORTATION OF CARS A MAJOR SPENDER OF FOREIGN EXCHANGE
•
Cars amount to
23% of
US$ 3 billion in spent forex
• US$ 500 million spent in 2017 for 35,000 vehicles INCENTIVISING FUEL EFFICIENCY & SUSTAINABILITY
• Maintains removal of taxes on hybrid vehicles under 1599 CC • Removes tax breaks on petrol and electric hybrid engines over 1599 CC
• Maintains tax breaks on CNG vehicles • Removes fuel subsidy
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