SHASTRI BOODAN
GML Correspondent
The Trinidad and Tobago Automotive Dealers Association (TTADA) is calling for greater access to foreign exchange (forex) for vehicle dealers as the Government prepares the 2026-2027 National Budget.
TTADA president Visham Babwah said, “Access has become increasingly difficult since whatever changes the Central Bank did within the last three weeks regarding forex.” Babwah said TTADA was also hopeful that taxes on mild and full hybrids under 1,599 cc would remain in place.
He said while the association was satisfied with the Government's decision to allow approximately 15,000 foreign-used vehicles into the country annually, dealers were experiencing difficulties obtaining the forex needed to conduct their businesses.
Babwah said the 15,000-vehicle ceiling was adequate for the current market and did not need to be increased.
He said TTADA was happy that the Persad-Bissessar administration had restored the quota of cars to 15,000 after the previous administration slashed it by 30 per cent.
Babwah said there were about 500 licensed vehicle dealers, according to the last official information available to the association, although he believes the number may have changed as new licences have been issued.
He also said the market for foreign-used vehicles was changing as consumers increasingly opted for new vehicles because of more competitive prices and financing arrangements.
According to Babwah, lower production and labour costs in countries such as India and Thailand have helped to significantly reduce the prices of new vehicles.
He said several major manufacturers have established production facilities in India, resulting in cheaper vehicles entering the Trinidad and Tobago market.
Toyota, Suzuki, Kia and Hyundai are among the brands being manufactured in India, he said.
Babwah said the difference in production costs could be substantial, pointing to the Toyota Hilux as an example.
He said a Hilux manufactured in Thailand could cost about $30,000 more than one manufactured in India.
He said the lower production costs were making new vehicles increasingly attractive to consumers.
“People are going towards it because it is very cheap at this point in time,” Babwah said.
He said new-vehicle financing rates as low as 3.99 per cent in some cases, combined with longer repayment periods of eight to 10 years, were also encouraging consumers to choose new vehicles rather than six- or eight-year-old foreign-used cars.
Babwah said the quality of vehicles manufactured in India remained good despite the lower production costs.
“Quality-wise, they tend to keep one standard,” he said, explaining that manufacturers generally maintained their quality standards across production locations.
Foreign-used vehicles, meanwhile, are mainly sourced from Japan and are becoming more expensive to import, Babwah said.
He said vehicles such as the Toyota Axio, Nissan Note, Nissan Bluebird Sylphy and other Japanese models were still being imported, but demand for them was not as strong as it once was.
Some used vehicles are being sold for between $70,000 and $75,000, while the cheapest new SUVs can now be purchased for around $160,000, he said.
Babwah said companies continued to purchase foreign-used vehicles for employees because they were often reluctant to put expensive new vehicles into the hands of workers.
He also raised concerns about the impact of crime on the automotive sector, saying high crime could discourage consumers from making major purchases and increase security costs for businesses.
Babwah said vehicle theft, particularly involving hybrid vehicles, was also becoming a growing concern.
However, he said the TTADA's immediate priority for the upcoming Budget remained improved access to foreign exchange.
He said greater availability of forex would help vehicle dealers maintain their operations and ensure consumers continued to have access to a range of vehicles.
