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CAR assembler Willowvale Mazda Motor Industries (WMMI) has unveiled plans to increase the make of vehicles assembled at its plant in Harare as it aggressively seeks new markets.

Willowvale indicated last year that it was considering reverting to its original business model, abandoned in 1989, of assembling different types of cars on contract.

At its establishment in 1967, WMMI used to assemble any type of car ranging from Toyota, Mitsubishi, Nissan and Peugeot for different clients on contract.

The arrangement was abandoned 26 years ago when the government directed WMMI to seek a single partner whose vehicles it would assemble.

Since 2009, when Zimbabwe adopted the multiple currency system, WMMI has been recording reduced business due to the influx of second hand Japanese cars into the country, which are cheaper than new locally assembled Mazda vehicles.

“WMMI is thus working on a strategy of market needs and trends and technological specifications our customers require, including multiple brands or makes and models assembled on contract, in order to close this market preference gap,” Industrial Development Corporation (IDC) public relations advisor Derek Sibanda said yesterday.

Given the mounting pressure on the government to procure vehicles for state officials and ministries locally, WMMI hopes to increase the appetite for locally assembled vehicles and boost domestic industrial performance.

“The issue at WMMI is policy supported to enforce the existing Presidential Procurement Order for public institutions than capital injection, so as to attain the minimum economic offtake for Completely Knocked Down operations of at least 4,000 units per year,” said Sibanda.

He added the existing plant equipment was sufficient for the new dream and there was no immediate need to refurbish the plant.

“Upgrades and refurbishments of the plant, mainly the paint shop, can be on schedule or modular basis but are not an immediate requirement to attain break-even operations,” he said.

Latest reports indicate that local vehicle production is at its knees with the industry recording an 88 percent drop to 2,000 units per annum as of November last year from about 18,000 units in 1997.

Subdued foreign direct investment, increased cheap vehicle imports and low capacity utilisation continue to weigh down on the sector, which is now said to be operating below 20 percent.

Studies indicate that the local industry’s failure to satisfy customer demands for variety and pricing model leaves buyers with no option but to import cheap second-hand cars.

Last year the government intervened by increasing duty for vehicle imports in a bid to curb the influx of second hand vehicles and protect the local industry — but consumers were critical, accusing the government of trying to force them to buy Mazda.

WMMI is a joint venture company between the Zimbabwe government through the IDC and two Japanese companies, Mazda Motor Corporation and Itochu Corporation. — New Ziana/Chronicle Reporter.