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Car selling business sharply declines in Kabul

Car selling business sharply declines in Kabul

Oct 26, 2015 - 19:02

KABULinfo-icon (Pajhwok): Growing insecurity, youth’s migrationinfo-icon and economic downfall has badly affected car selling/buying business in capital Kabul, with bargain owners suffering millions of afghanis in losses.

More than 430 car showrooms exist in Kabul and major ones of them are in Khairkhana Kotal, Qasaba, Kampany, Ahmad Shah Baba Mina, Dihbori, Dasht-i-Barchi, Qalacha and Qarabagh localities.

Earlier the business was growing, but currently there was no profit in sales, the dealers said, adding the prices of small vehicles had declined by 30 percent and of heavy vehicles by 50 percent.

Most of the car selling business owners said they were unable to pay the rent of their showrooms and thus winding up their business or choosing other occupations.

Hamid Baraki, a bargain owner in Qasaba locality, said insecurity, migration of youth, decline in prices and sales had left the car business in tatters.

He told Pajhwok Afghan News most of the people were selling their vehicles because the city roads were full of cars and there were few people interested in buying cars.

According to Baraki, people going to Europe had sold their cars against half of their prices because they needed cash for their journey.

“Earlier we used to earn 100,000 afghanis in one month, but currently we incur in losses the same amount every month.”

According to a recent survey, as many as 78,000 people had migrated to European countries this solar yearinfo-icon.

Mukhtar Faizi, an economics student at a private university, who visited a showroom in Kotal-i-Khairkhana locality, said he wanted to sell his car for his trip to Europe.

Haji Wafa, head of car bargain owners association in Qasaba, said over the past one year, their business was on the decline. Customers had disappeared and bargains could hardly sell one car in a month, he said.

He said the business was not doing well as people were not ready to buy vehicles previously sold for $20,000 for $15,000 this year.

Khan Jan Alokozai, Afghanistaninfo-icon Chamber of Commerce and Industries (ACCI) deputy head, said car selling was a leading business earlier but it had now declined due to increase in car tax, decrease in prices, unemployment and decline in use of vehicles by foreigners.

“People are struggling with economic hardships, they don’t have money to rent a taxi, so how can they buy a car in these situations,” he said.

He asked the Finance Ministry to consider its car tax policy in order to restore businessmen’s trust in the car selling business.



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