SUNBIZ

Facts And Thoughts About All Those Cars

The amount of cars on our Fiji roads has increased in the past year and we surely see this through our commutes each morning with some having to leave earlier
11 Feb 2017 11:00
Facts And Thoughts About All Those Cars

The amount of cars on our Fiji roads has increased in the past year and we surely see this through our commutes each morning with some having to leave earlier and earlier just to be on time for work.

As mentioned by Land Transport Authority Acting Chief Executive Officer Aptinko Vaurasi, “The total new registration of vehicles for 2016 is 15,196 with 4,969 new vehicle registrations and 10,227 second-hand registrations… growth rate approximately 10 per cent”.

The increasing number of vehicles is proving a challenge for the FRA as it works to maintain the country’s road network system through widening of roads from single to double lanes to cater for the number of cars that travel our roads and to ease traffic congestion.

They had been given a budget of $527 million in the 2016-2017 budget in which $95 million is allocated to rural roads

The Survey covers registered businesses engaged in Wholesale and Retail Trade; Repair of Motor Vehicles and Motor Cycles which account for 80 percent of Total Turnover in this business sector.

The statistics provides us with a short term indicator of the industry’s performance.

 

Wholesale and Retail sale of Motor Vehicle and Motor Vehicle Parts

September 2016 sales of motor vehicles rose by 3.5 per cent ($2.1 million) when compared to the June quarter of 2016 and rose by 21.36% ($10.6 million) when compared to the same time the previous year.

We are seeing a an upward trend throughout the past 3 years which is a good indication of the economy as more people are purchasing vehicles for their personal use.

Maintenance and repair of motor vehicle and motor vehicle parts declined by 0.89 per cent (-$0.31 million) when compared to the June quarter of 2016 and rose by 5 per cent ($0.17 million) when compared to the same time last year.

We see a cyclical behaviour on a yearly basis from 2014 till date peaking around June and December quarter and dipping in the March and September quarters.

This indicates Fiji citizens taking in their cars semi-annually and annually for repair and servicing.

Japan is where we buy most of our motor vehicles from and although we had seen a strengthening of the Yen currency (refer graph 2) since June 2015 it is not enough to driveway demand as it is accompanied by cheaper cars such as Hybrids and second hand vehicles.

Moreover personal car loans given by banks has increased from $77.6m at the end of 2014 to $104.6m at the end of Dec 2015 and further rose to $131.0m at the end of September 2016.

The Fiji Motoring Traders Association recorded an increase by 32 per cent of registration of second-hand vehicles this year (January – September) since 2010 (or 4000 vehicles in 2010 to about 11,000 in 2016).

According to RBF the country imported about 8,000 vehicles per year. RBF senior economist Jacinta Hesaie said the value of imports sat at about $700 million (inclusive of machineries and transport equipment).

The transport sector accounts for 8 per cent of total GDP and it makes the transport sector the sixth largest industry in the Fijian economy.

December 2016 quarters numbers are expected to increase from September 2016 quarters following the expected tax duty on cars imports especially on second-hand hybrids as from January 1, 2017 in the national budget 2016-2017 and the buckling down in ensuring quality and safety against prices through quarterly release of vehicle landing costs.

Conclusively, with the amount of people with cars and amount of time we now spend in it, marketing personnel would be interested in looking into radio advertising more.

More cars drive on and radio advertising follows.


This is an informative publication, sponsored by The Fiji Sun, Fiji Bureau of Statistics and HFC Bank. All views expressed or implied are purely of the Treasurer at the HFC Bank, Peter Fuata.

 



Laybuy it 5squares


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