Business / Companies
AVM calls for protection against cheap bus imports
24 Apr 2012 at 03:59hrs | Views
BUS manufacturer AVM Africa has called on the Government to protect the sector from cheap imported buses flooding the local market. AVM is facing stiff competition from imported buses most of which are more that 10 years old making it difficult for the company to survive.
Last year, Government had proposed to ban the importation of second hand vehicles to protect the local industry, however the embargo has since been shelved exposing local producers to unfair competition.
AVM Africa general manager Engineer Siyaniso Mukonoweshuro said protection of the local industry will promote economic expansion of the country.
"Imports are crippling our operations and we call upon the Government to intervene. We feel we should be protected by Government to create wealth for Zimbabwe. Imports are cheap, but expensive in the long run," he said.
"Protection of the sector will not help us alone but all those in the downstream industry. This will also create employment and Government will get more revenue."
Recently the company announced that it will introduce a new bus model this year, comprising a body made from local components and an engine from China and will cut production costs by 50 percent.
The company is assembling about three buses per month and is targeting 10 by year end.
Eng Mukonoweshuro said the company had made arrangement with a local financial institution to avail loans for willing customers.
"My heart bleeds, Zimbabwe is not a dumping ground, we provide after sale services compared to what the people are importing.
"We want to thank schools and some Government departments such as the police and the army, they have been very supportive," he said.
He said the company can source any bus model as per customer's specifications.
"Any body can order from us any model be it VW, MAN or any other even those that can bring their own kit, we can assemble it for them," Eng Mukonoweshuro said.
The promotion of buses, Eng Mukonoweshuro said, could also help decongest the country's roads especially in city centres.
"Where three kombis are required, one bus can do the job," he said.
AVM Africa was established in 1961 as AW Dahmer.
Last year, Government had proposed to ban the importation of second hand vehicles to protect the local industry, however the embargo has since been shelved exposing local producers to unfair competition.
AVM Africa general manager Engineer Siyaniso Mukonoweshuro said protection of the local industry will promote economic expansion of the country.
"Imports are crippling our operations and we call upon the Government to intervene. We feel we should be protected by Government to create wealth for Zimbabwe. Imports are cheap, but expensive in the long run," he said.
"Protection of the sector will not help us alone but all those in the downstream industry. This will also create employment and Government will get more revenue."
Recently the company announced that it will introduce a new bus model this year, comprising a body made from local components and an engine from China and will cut production costs by 50 percent.
The company is assembling about three buses per month and is targeting 10 by year end.
Eng Mukonoweshuro said the company had made arrangement with a local financial institution to avail loans for willing customers.
"My heart bleeds, Zimbabwe is not a dumping ground, we provide after sale services compared to what the people are importing.
"We want to thank schools and some Government departments such as the police and the army, they have been very supportive," he said.
He said the company can source any bus model as per customer's specifications.
"Any body can order from us any model be it VW, MAN or any other even those that can bring their own kit, we can assemble it for them," Eng Mukonoweshuro said.
The promotion of buses, Eng Mukonoweshuro said, could also help decongest the country's roads especially in city centres.
"Where three kombis are required, one bus can do the job," he said.
AVM Africa was established in 1961 as AW Dahmer.
Source - New Ziana.
