With slew of internal factors, a second-hand Vitz now sells for a record sum, nearing 800,000 Birr
With prices of most commodities becoming out of reach for most of the population in Ethiopia - a car - still seen as a luxury for Ethiopia’s growing middle class, the value of a Vitz has reached to uncharted territory in the local market.
This comes as the popular vehicle from the Gulf States becoming popular with the app-operated taxi services in the capital and becoming the cheapest cars that are affordable for most. Even then, that is becoming out of reach for an Ethiopian population facing a slow economy sandwiched by the effects of the COVID pandemic, lack of forex, conflicts and importers facing a slew of taxes.
“I bought my car two years ago for 250,000 Birr. I used it appropriately and was able to sell it for 780,000 this week. I was heartened to discover how much its value added up in such a short while and I could have sold it more had I waited ever for a week”, Mahlet Tadesse told Detail Ethiopia.
She said it took her half a day to advertise and sell and garnered much interest, but at the end, Mahlet told hers to a 27-year-old banker looking at working for a local Taxi app after work.
At the headquarters of Hyundai marathon in the capital, owned by Olympian Haile Gebre-Selassie, there is now a long wait for imported cars that the staff is advising its clients to purchase their vehicles elsewhere as it’s ability to gather forex has dwindled.
Even then, to those who have waited for a year for its popular Hyundai Creta, its value has shot up from 1.1 million Birr in 2017 to 2.7 million Birr this year, owning a car a far-fetched dream for most.
According to a salesman, even then, there are no cars to sell and the wait is now a year, at the minimum for such a car.
Last year, Haile announced a partnership with his Marathon Motor Engineering and Hyundai Motor company to start manufacturing an electric Hyundai to the local market. According to him, it was priced to be “affordable” and sold around 2 million Birr, curbing his need to import cars with dwindling forex but the company is yet to sell any of the electric cars locally.