DUBAI - Export volumes of second hand cars to 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 used cars in Iraq. Second hand car dealers are now sitting on huge stocks with export requirement having dipped substantially, industry sources say.
Irshad Nabi Bangash of Bangash Motors, said: "About nine months ago we had exported about 14,000 to 15,000 cars, which has now dipped to 1,000 cars a month. Volumes have also dropped due to unstable political situation in Iraq. The car dealers had enjoyed duty exemption for car exports 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 be left hand- drive and we are having stocks of right hand drive cars."
Another second hand car dealer, Yousuf Khan Durrani of Marina Motors said: "In addition to decline in exports of second hand cars volume, prices have aslo dropped substantially. Initially rise in exports of used cars had aided price rise. Most dealers are now facing glut purely because these cars were earlier sourced from other overseas markets. Exports particularly to Iraq are on decline mainly due to security issues."
He said: "Shipments of vehicles from Dubai directly to Basra were continuing smoothly, Baghdad is some 500km from Basra and the vehicles had to be driven or taken on trailers to Baghdad. On their way, there had been incidents of vehicles being snatched. The most popular vehicles which were exported to Iraq were diesel commercial, Hi Ace, Toyota Crown, Mark II, and Toyota Corolla.
Prices of various car models are on decline in Iraq for instance the Toyota Corolla (97-98 model) was quoted at Dh16,000, which is now declined to Dh11,000. Similarly other models such as Hi Ace was earlier quoted at Dh14,000 has now declined to Dh11,000, Toyota Crown has dipped to Dh8,000 against Dh12,000, Mark II is quoted at Dh6,000 against Dh8,000.
In the last few months demand for used cars had opened up enormous business opportunities for a number of dealers from the UAE, Korea, Japan and Kuwait.
The market was initially hungry for a large number of cars of all makes and models, but after the new Iraq government took over, the import of car models beyond 1991 was banned.
BY SANDHYA D'MELLO
© Khaleej Times 2004
