The adoption of electric vehicles in this country has significantly grown and one reason is that electrical chargers and parts are now exempted from paying customs duty, value-added tax and online purchase tax. Those measures came into effect in January.
ANSA Motors general manager of International Business Daryl Young told Sunday Business Guardian that the T&T electric vehicle market has grown significantly since the amendment of tax structure.
“If I recall the numbers off my head, initially when electric cars were introduced in Trinidad about three years ago, it started at four per cent market share. Today they’re up to 15 per cent and growing.”
However Young said the Guyanese market is a little bit behind in terms of the infrastructure.
“There’s not a lot of charging systems as yet and the taxes are still punitive on new cars. But they actually have been very relaxed towards fully electric cars, not hybrid cars. So they are encouraging that carbon footprint to be improved and made a 100 per cent tax exemption on fully electric cars in Guyana,” he stated.
Speaking at the launch of the Proton eMas7 electric vehicle on Thursday, Young explained that Proton is a Malaysian car, which ANSA Motors began to distribute last year in T&T and Guyana.
Young said the vehicle has exceeded the company’s expectations.
“We know in Guyana it’s 70 per cent of all core brand sales are Proton alone. So it’s exceeded our expectations and been very well received in the Guyanese market as well as in Trinidad.”
Asked how the Proton brand is competing with roll-on, roll-off cars, Young explained that the price structure is different to a new car and the buyers are not necessarily the same person.
“What we did with the Proton brand was we brought a car at an entry-level price point that more people at the city perimeter can afford again, with their disposable income where it’s at. It’s receiving good acceptance from that niche market of people who want a new car. So young professionals are now working because they are very tech-savvy buyers,” Young disclosed.
Proton eMas7 is being offered at an introductory price of $299,000, but the actual price is $349,000.
Young noted that the benefit of buying from ANSA Motors is that one gets the three components of a car purchase under one umbrella.
“You get the car, the insurance and the finance, which are all in one package. When you buy the vehicle, you’ll get two years’ service and two years’ insurance included in the price,” Young said.
With the 25 per cent US tariff on cars not made in the United States, Young said thus far, the brand which is manufactured in Malaysia remains relatively untouched.
“It comes from Malaysia directly, so we’re not seeing any major detrimental hits to us just yet. What the future holds with US President Trump and his decisions remains to be seen. But for now, we’re still safe,” he said.
In terms of the foreign exchange crunch and with Prime Minister Kamla Persad-Bissessar saying the government would be investigating how the foreign exchange is distributed, Young said that the shortage affects the entire new vehicle industry in a very difficult and adverse manner.
“I don’t think anyone can access the US dollars required for the amount of demand that we have in the units. You’re seeing the market compressing a little bit. You’re seeing the number of cars coming in falling short a little bit, which is unfortunate because, of course, the tax structure of cars in Trinidad is very weighted in favour of government tax collection,” he disclosed.
Asked how ANSA Motors is mitigating this issue on a day-to-day basis, Young said the company is balancing out its model line-up differently.
“You look for cars that the public is taking in high demand. You balance it with whatever margin of units you can bring in. You can’t, unfortunately, bring everything for everyone. I can no longer bring my full lineup of cars in any brand that we carry in our portfolio because we just don’t have the US-dollar allocation to do that,” Young mentioned.
On whether the Proton brand is an expensive vehicle to maintain, the general manager, quickly said, “Not at all.”
He highlighted that it is the cheapest car, if not the single cheapest maintenance operational car in ANSA’s full lineup, which also includes brands like Ford, Honda and Mitsubishi.
“It has one of the lowest operational costs you can buy. It’s better for me in the long run, and of course, because of the low operational cost, as a second-hand car, it’s a nice car to maintain and a cheap car to maintain.”
As it pertains to having qualified mechanics to deal with electric vehicles, especially when it comes to parts, Young said the difficulty with electric cars is that they require a certain amount of training, tooling, equipment, and safety precautions.
He underscored that before one can get an electric car as an authorised dealer, the person has to jump through multiple hoops to receive safety and training, and prove that they have invested in the right equipment, safety equipment.
“Most of these electric cars have to be cordoned off to be safe in certain areas. Yes, they will find it difficult to manage and maintain. But basically, we are trained by a principal, fully trained. Our technical director has been to Malaysia on several occasions and has daily contact with those guys. So, we’re fully up to speed on what needs to be done,” Young stated.
Concerning the chargers for Proton vehicles, the general manager outlined that there is a charging port at Proton’s showroom in Grand Bazaar, and there is also the option to purchase a charger system.
“We have certain preferred providers in terms of technicians. You must have a certified electrician, who we certify alongside government certification, to install the charger for you. That’s a very vital component,” he added.