Zambia Autos Report - Business Monitor International - Industry Reports

Zambia Autos Report

Zambia Autos Report - Business Monitor International - Industry Reports
Zambia Autos Report
Published Aug 06, 2016
25 pages — Published Aug 06, 2016
Price US$ 1,295.00  |  Buy this Report Now

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Abstract:

A slowing construction sector and an uncertain mining sector environment will lead to a contraction of --.- in commercial vehicle (CV) sales in ----, and an average annual decline of --.- over our forecast period ---------. Breaking this down further, we forecast a contraction of --.- in light commercial vehicle (LCV) sales in ----, while heavy truck sales will contract --.- . ...Breaking this down further, we forecast a contraction of --.- in light commercial vehicle (LCV) sales in ----, while heavy truck sales will contract --.- . Our Mining team s view is that that low copper prices, the country s high degree of mineral policy uncertainty and ongoing power shortages will continue to limit the sector s production growth in ----, with copper production forecast to decline by -- in ----. This will have negative spill-over effects for the CV segment, as a contraction in the mining sector will reduce demand for CVs used in mining operations, especially heavy trucks. ...Our Infrastructure team expects growth in the construction industry to slow to -.-- in ----, down from an estimated --.- in ----. Announcements by the government to cease the procurement of new infrastructure project contracts, including road projects, as part of the government s planned spending cuts for the ---- National Budget, will restrict demand for CVs over the year.

...Our Country Risk team expect the kwacha to contribute towards elevated inflation levels and continue its depreciatory trend throughout ----. The currency is expected to reach ZMW--.--/USD by the end of the year, down from ZMW--.--/USD in ----. With Zambia lacking domestic autos production and thus solely reliant on vehicle imports, a deprecating currency will mean vehicle prices will remain high throughout ---- therefore pricing consumers out of the market. With inflation expected to remain elevated in ----, our Country risk team believe the Bank of Zambia will maintain its hawkish monetary policy and hike interest rates by --- basis points over the remainder of the year, reaching --.- by year end. High interest rates will see Zambia s client loan growth slow over the course of ----, falling from --.- in ---- to --.- in ---- according to our Country Risk team. ...High interest rates will see Zambia s client loan growth slow over the course of ----, falling from --.- in ---- to --.- in ---- according to our Country Risk team. This will translate into a fall in auto loan demand as vehicle financing costs rise and dampen private consumption as consumers opt to save instead of borrowing, thus dragging on spending on vehicle purchases.

...The economic crisis in Zambia, as a result of the collapse in copper prices, which accounts for -- of export revenue, led the government to implement spending cuts as part of its ---- National Budget. It aims to halve the budget deficit in ----, to -.- of GDP, by boosting domestic tax collection. ...

  
Source:
Document ID
2048-996X
Country
Industry
Format:
PDF Adobe Acrobat
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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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MLA:
Business Monitor International - Industry Reports. "Zambia Autos Report" Aug 06, 2016. Alacra Store. Dec 05, 2016. <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Zambia-Autos-Report-2026-1297>
  
APA:
Business Monitor International - Industry Reports. (2016). Zambia Autos Report Aug 06, 2016. New York, NY: Alacra Store. Retrieved Dec 05, 2016 from <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Zambia-Autos-Report-2026-1297>
  
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