Car dealers across Malawi continue to struggle to scale their operations due to existing government policies that have significantly reduced the overall rate at which vehicles are being imported. In this piece, Belaire Weekly chronicles how car dealers battle to stay afloat.
Vehicle importation continues to bleed compound stagnation by the looming foreign exchange shortage in the country. The lack of forex availability has not only skyrocketed the cost of importing vehicles; it has also increased cargo clearance levies.
(For context, we look into the emerging African economy, Nigeria, and the effects pertaining to similar circumstances in their auto-sector.)
Nigerian magazine, The Punch, reported that there was a drop of about 40 per cent in the number of imported vehicles between January and October last year through the Ports & Terminal Multipurpose Limited compared to the figure for the same period of the previous year.
A total of 192,287 units of vehicles were imported into Nigeria in the first 10 months of 2021, while only 114,159 units were imported through the same terminal in the same period in 2022. This was mainly due to the devaluation and concurrent shortages in forex in the country.
According to a Belaire Motors National Sales Manager, Vincent Kasamale, it has become very difficult to sell foreign used cars, sighting that consumers gravitate towards acquiring locally used units because they are relatively cheaper.
“It’s worth noting that, although sourcing locally used vehicles is cheaper than hailing them internationally, they are typically more expensive now. For example: a used 2008 Toyota Hilux trades hands for MWK20,000,000,” Kasamale said.
Case Study:
Toyota Land Cruiser 200
In 2020, a brand new Toyota Land Cruiser 200 VX.R, one of the most expensive SUV’s on the Malawian market at the time, cost MWK120,000,000. When its successor, the 300 Series spawned across Malawian roads in March of 2022, it had a sticker price of MWK170,000,000 before options. For further context, the most expensive model at the time, the ZX 70th Anniversary Edition had a retail value of MWK212,400,000 when fully spec’ed through local dealers at the time.
Oh, how times have changed!
Toyota Land Cruiser 300
Exactly 2 years since it’s introduction into the Malawian market, local dealers stiffly offload Land Cruiser 300 Series units at well over MWK460,000,000 depending on model, spec and exchange rate (prices start at just under MWK 340,000,000 at Belaire Motors at the time of writing).
Nissan Patrol Y62
In 2022, the flagship Nissan Patrol Y62 retailed for “just” MWK90,000,000 and now lists at a staggering MWK309,000,000 brand new, at the courtesy of local dealers (MWK240,000,000 at Belaire Motors). A MWK200,000,000+ increase in price. Mind boggling, to say the least.
Ford Ranger Raptor
Over the same two year period, Ford’s highly successful Ranger Raptor prices have shot up from MWK72,000,000 to MWK192,000,000 at local dealers (MWK174,000,000 at Belaire Motors). It may be worth noting that the model has experienced a MWK52,000,000 increase from previous listings of MWK140,000,000 in October 2023, just 5 months ago.
Let’s not even get started on what it costs to import the latest renditions of Land Rover and Lexus’ flagship SUV’s.
All-in-all, the picture being painted is blatant and uniform. As time progresses and the local currency wears out, so does the state of the automotive sector. Though the settled better institutions continue to strive in these harsh economic conditions, new-comers struggle to find their footing… Then, there’s Belaire…