Aug 2015 Financial News

10% growth expected in T&T car sales

Aug 24, 2015

Managing director at Ansa Automotive Jerome Borde predicts that the local automobile sector will grow by at least ten per cent by year’s end, adding to the impressive results recorded in 2014, while sustaining the positive trends the market has seen over the past five years.

In a T&T Guardian interview, he said his optimistic forecast for the sector was based on the fact that the local economy was strong and the cost of borrowing was low, due to excess liquidity in the market.

He did not see a reduction in the price of new vehicles occurring anytime soon, citing lending institutions’ currently higher risk tolerance, and the popular business model where repayment terms for consumer vehicle loans are extended for as long as seven years.

The flexibility in payment options made it easier for the average pre-qualified consumer to access financing, which meant dealerships were moving units a lot faster.

Borde said: “The market has been growing since 2010. It’s been on a growth path and we expect 2015 to be no different. Percentage wise I would suggest that we may experience a further ten per cent growth over 2014.

“What we are seeing is an interesting scenario in that the traditional luxury market is changing. We have so-called luxury brands producing models that are entering what we would not have considered the luxury market.

“So, there are a lot of downstream models coming into the traditional market. At the moment the outlook and growth for the luxury car market has been very good. It has been growing over the last three to four years and we expect it to continue onto 2015-2016.”

Borde said the transitions in the market augured well for Ansa Automotive which had five brands, two of which were luxury lines: BMW and Land Rover/Jaguar.

Both models were segment leaders, he said.

“When we look at the Land Rover today and what lies ahead, it’s going to be extremely interesting because there are so many models coming in with smaller engines, with new technology that gives you the output that is turbo charged and so on. This brand is on a growth path and we are very excited about what comes before us,” he said.

Responding to questions about fitting luxury vehicles for CNG, Borde said Honda was the first to market a bi-fuel vehicle that was CNG capable which was doing well, and rival brands were expected to follow suit. The Honda dealership is under the Ansa Automotive umbrella.

“So, it’s only a matter of time that we would see a significant amount of CNG or hybrid vehicles being available in all models. From the brands which we carry, I think from early next year, we will start to see in the luxury segment some offerings along those lines,” he said.

Source:
SEAN NERO
Trinidad Guardian, A24
Sunday August 23, 2015