Revving Up – The Future of T&T’s Automotive Industry
December 9th, 2024
Trinidad and Tobago’s (T&T’s) automotive industry, with its unique challenges and opportunities, is a dynamic space. Global names like Porsche, Chevrolet, and Jeep lead the industry’s rapid technological changes. As the authorised local dealer and distributor of these brands, Lifestyle Motors is at the forefront of these developments, navigating the intricacies of T&T’s automotive landscape.
Challenges Amidst Rising Sales
Despite an uptake in sales in the past two years, there are still challenges, says Avinash Rampersad, CEO of Lifestyle Motors, “From the industry numbers, new car sales have increased, but the cost of cars from the factories has risen drastically. Our taxes are based on the cost of the cars, plus shipping – which has quadrupled.” says Rampersad.
The industry is also susceptible to the common forex issue of a lack of availability: “US dollars are in very short supply. We still get other currencies, such as Euros, Canadian Dollars, and British Pounds. However, manufacturers want US dollars, so we have to buy one currency and convert it. This cross-conversion sends the effective exchange rate well above seven dollars and fifty cents to one US dollar.”
Price Hikes and Safety Concerns
However, Rampersad notes, “In T&T, a motor vehicle is not a luxury item; it is a necessity because the public transport system has a number of inefficiencies.” In response to the price increases, he says, “The banks and financial institutions have been extending the terms of car loans. The standard term now is seven years. So, cars have become a significant investment with a long-term payout period.”
Another risk to the industry involves certain vehicle dealerships failing to meet global safety standards. “When ‘grey market’ dealers bring cars to T&T, they have not been modified for our market. We (Lifestyle Motors) have invested over TT$2.5 million to ensure that we can handle electric cars; this includes the development of quarantine and battery workrooms and certifying our technicians.”
Driving the Future
Emphasising that T&T has adapted quickly to the new trends, Rampersad continues, “I think every single dealer has hybrids and BEVs (Battery Electric Vehicles), which are the future in the short to medium term. Emerging technology, such as hydrogen vehicles, will come, probably from 2025 onwards. Manufacturers like Porsche are working on biofuels made from renewable sources. However, because it’s a new technology, it requires a lot of initial investment.”
Does Rampersad believe that the next-generation vehicles will outsell traditional petrol? “I don’t believe that BEVs will outsell petrol vehicles before 2030 because there are very few fully electric vehicles – right-hand drive – available to our market. I think hybrids will be the major seller by 2026 because of the gradual removal of the fuel subsidy; buyers are seeking fuel-efficient vehicles.”
Rampersad highlights the industry’s commitment to broader civic action: “We have trained fire and emergency services personnel on how to extract persons from hybrids and BEVs.” Emphasising the industry’s dedication to sustainability, he says, “We ensure all cardboard used for shipping parts is recycled, and we have invested in solar energy. It’s part of our green initiative.”
Article by: Sheldon Waithe
