Car sales slowed down in Ethiopia over the last week causing major importers of used cars to marginally cut prices.

Importers say that the latest trade and tax regulations are to blame for the slowdown. Industry observers on the other hand say that the increase in production and number of importers during the last few years have contributed to the slowdown.

The price of used cars has been fluctuating while that of brand-new cars has remained stable except for a marginal decrease during the latest crises in Japan, according to major importers of brand new cars.

According to the Ethiopian Revenue and Customs Authority, over the last fiscal years, more than 25,000 cars were imported to the country. More than 10,000 of those cars were station wagons, sedans and other automobiles.

In spite of the recent tariff increase on imported used cars, their price is declining.

Source: The Reporter