Diagnosis and Sensors to spread tentacles

ONE of the country’s leading suppliers of automotive sensor and specialists in computerised car diagnostic, Diagnosis and Sensors has set sights at spreading its tentacles locally and regionally buoyed by an increase in the importation of secondhand vehicles especially from Japan into these markets over the years.

Diagnosis and Sensors marketing manager Mr Netho Francisco said the company was looking forward to fortifying its stranglehold locally as well as exploring regional markets as it bids to grow its business.

“As part of our short-term plan we are working on setting-up shop in each province in the country as we are already an established and reputable supplier of a wide range of automotive sensors and experts in computerised car diagnostic. We are looking forward to opening another outlet in Gweru in addition to the two (Harare and Bulawayo) we have thereafter spread to other areas,” said Mr Francisco.

The company has a state-of-the-art well-equipped workshop in Harare as well as another outlet in Bulawayo.

“Our plan is to go beyond Zimbabwe, in countries such as Malawi and especially Zambia, where we have been receiving customers from, coming all the way here to buy from our outlets. We were also looking forward to setting up in Mozambique but the unrest in that country tends to discourage business. This is part of our long-term plan, which however, is for the near future,” said Mr Francisco.

There has been a surge in highly automotive secondhand car imports in the country especially from Japan and the United Kingdom since the dollarisation of the country’s economy in 2009. Although the Zimbabwe National Statistics Agency recorded a slump of 25 percent to $250 million in the first half of 2016 from the $365 million recorded last year during the same period.

A 22 percent decrease in car imports was also recorded at the close of 2015 from the $469 million spent on vehicles in 2014 to $452 million. The drop came on the back of high import duty tariffs and continued tight liquidity.

In March the Zimbabwe Revenue Authority hiked the amount payable on import duty. This saw importers paying increased amounts by between $300 and $1 000 when they bring in vehicles such as Toyota Corolla (both bubble and old shape), Toyota Vitz and Toyota Raum (old and new shapes) as well as Honda Fits, which are vehicles that have a high demand locally.

Duty paid on importation of motor vehicles into Zimbabwe is based on the Cost, Insurance and Freight (CIF) value plus other incidental charges and expenses incurred in the purchase of the vehicle and its subsequent transportation up to the first point of entry into the country.

Diagnosis and Sensors managing director Mr Farai Chitongo said imported secondhand vehicles contributed immensely towards boosting Government’s revenue.

“Imported cars have contributed significantly to the country’s fiscus through import duty and as such played an integral part in the country’s economy,” he said.

Mr Chitongo, however, said the stereotypes that Japanese cars were not durable and cannot be repaired coupled with the prevailing liquidity crunch in the country was slowing their business.

“Some of the challenges that we are facing is that people generally do not understand the importance of sensors and diagnosis on these modern cars and therefore are reluctant to buy them. People are still using orthodox ways of fixing these modern cars. There is need to embrace new technology, because we can’t win with these modern cars if we continue to use old methods to fix them,” he said.

Diagnosis and Sensors has over the years exhibited at the Harare International Agricultural Show, the Zimbabwe International Trade Fair as well as various Small to Medium Enterprises Expos.