Dubai., Aug 11, 2004 (WAM)--Export volumes of second hand carsto Iraq have dropped by almost 90 per cent during the last nine months,second hand car dealers say.
Decline in car exports is mainly attributed to a glut of usedcars in Iraq. Second hand car dealers are now sitting on huge stocks with export requirement having dipped substantially, the Dubai-based KhaleejTimes quoted industry sources as saying.
Irshad Nabi Bangash of Bangash Motors, said: "About nine monthsago we had exported about 14,000 to 15,000 cars, which has now dippedto 1,000 cars a month. Volumes have also dropped due to unstable political situation in Iraq. The car dealers had enjoyed duty exemption for carexports to Iraq in earlier days which is now having a nominal duty. Another main reason is that most cars which were expected in Iraq had to beleft hand- drive and we are having stocks of right hand drive cars." Another second hand car dealer, Yousuf Khan Durrani of MarinaMotors said: "In addition to decline in exports of second hand cars volume,prices have also dropped substantially. Initially rise in exports of usedcars had aided price rise. Most dealers are now facing glut purely becausethese cars were earlier sourced from other overseas markets. Exportsparticularly to Iraq are on decline mainly due to security issues." In the last few months demand for used cars had opened up enormousbusiness opportunities for a number of dealers from the UAE, Korea, Japanand Kuwait.
The market was initially hungry for a large number of cars ofall makes and models, but after the new Iraq government took over, theimport of car models beyond 1991 was banned.
