Measure taken to meet local demand amidst slow supply
Dealers of the Japanese automobiles have stopped re-exports of cars from the UAE fearing shortage of vehicles in the market.
According to a report in Al Khaleej, the precautionary measures have been taken due to low inventory levels and slow production in Japan after the recent earthquake.
"Most of the dealers have suspended the re-export of cars in order to meet domestic demand in the coming months, while supply is expected to decline from Japan," sources in the automotive sector said.
The sources expect these measures to remain in place till September, when Japanese companies hope the production will return to previous level.
Sources indicated that current inventory is at the satisfactory level.
"But the current shortfall is limited to the specifications and colours of some models. These models are then made available to interested buyers from factories outside Japan, such as America, Australia and others."
© Emirates 24|7 2011
