Affected by the COVID-19 crisis, the automotive sector is now among the most vulnerable ones to the global pandemic’s effects. Disruptions in the supply chains of dealerships around the world have had a significant impact on the industry. Starting with factory shutdowns in Europe to shortages of spare parts from China, the automotive market has hit the stoplight for almost a year.

 Uncertainty prevails

The Mauritian market was not immune. The Motor Vehicles Dealers Association (MVDA) reports that the road ahead is still unclear as uncertainty still looms. Two problems remains: production and supply. Both situations are beyond the control of the MVDA, as they are prevailing due to the lockdown and new laws introduced because of Covid-19 in various countries. Furthermore, the priority of courier services and air freight cargo focuses on medical equipment. The association also states that: 

“Customers will experience delays for vehicle deliveries, accident repairs and parts sales… Due to the uncertainties prevailing on the global market, we are not in a position to forecast availability.”

Some measures to address the crisis faced by the sector

To mitigate the consequences, the Mauritian government presented a series of measures in its national budget on the 11th of June. This will allow car dealers to get some relief until the market recovers… The excise duty rebate on motor vehicles has been extended for another year, until the 30th of June 2022. The scheme includes the following:

• A motor car up to 1 000 CC (whether hybrid or not) shall benefit of 40% rebate on the excise duty payable on the motor car.
• A motor car (whether hybrid or not) above 1 000 CC, double/single space cabin vehicle and van, on the other hand, benefits of 30% rebate on the excise duty payable on the motor vehicle
• A beneficiary of a duty-exempted motor vehicle will be allowed to benefit from another duty-exempted motor vehicle within a period of 4 years, provided that the amount of duty and taxes exempted on the vehicle is fully reimbursed.