WELL SATISFIED

New Zealand Times, Volume LIII, Issue 12612, 24 November 1926, Page 3

WELL SATISFIED

N.Z.’S GREAT MOTOR TRADE

TARIFF PREFERENCES FOR BRITISH MANUFACTURERS AN APPRECIATION Widespread satisfaction is evident in tho British motor vehicle industry regarding the amended import duties on ears, etc., entering New Zealand which became effective last month (writes the “British Export Journal”;. The new basic ad valorem rates are 10 per cent, for British vehicles and 05 per cent, for other makes, while the old fixed duties on bodies Lave been abolished. Where chassis are imported with passenger carrying bodies fitted the additional duty, presumably to protect the local coach building industry, is for British vehicles. 10 per cent, up to a dutiable value of £2OO, and o per cent, on any higher value, and for foreign makes 15 per cent, up to £2OO, with ”i per cen t. thereafter. The “dutiable” value in this latter connection is the current domestic value plus 10 per cent., and we mayadd also that special provision has been made for imposing duties on bodies separately imported, as well as for vehicles imported without any item of usual equipment. PRICE NOT THE SOLE FACTOR FOR SUCCfeSS Substantial as this new preference is, however, it must not be assumed that it alone will be sufficient to establish British cars on as firm a foot* ing as other British goods possess m the Dominion. It is true that 2780 British cars valued at £‘796.700 wero fmported into New Zealand last year, as compared with only 126. valued at £68,100. in 1922. and that several British light cars are gaining in popularity very rapidly, but it is equally true that of the 321,200 motor vehicles running in the country to-day over 80 per cent, originated in America. Certainly the price factor, which will now be removed to some extent, is accountable for this in a very large degree, but it must also be acknowledged that the spare parts and repair services which have been developed in every district will continue to facilitate the sales of American cars. This assistance to the ownerrdriver is. indeed, not less necessary for success •'’an the provision in the first instance of a moderntely-nriced car with outstanding bill-climbing abilitv and with strenTth to withstand rough roads.

NEW ZEALAND PREFERS C-'W'**

At tlie same uuic, u is unquestionable that British motor vehicles have in their favour the fact that the popular preference lor British goods is more pronounced in New Zealand than in any other Dominion, and we note with particular interest that even before the actual tariff preference explained above was made known there were signs in America of disquietude at the progress of the British motor trade in so valuable a market. Such anxiety, we admit, is confined to the motor-car trade, for America and Canada together appear to be increasing their already large share of the business in motor lorries, but its manifestation nevertheless strengthens the belief that the day of almost complete American monopoly is definitely over. As to the extent of the opportunities open to motor manufacturers in New Zealand, we would remind our readers that the value of the motor vehicles imported from all sources rose from £2,416,000 in 1923 to £3,541,600 in 1924. and again to £4,146.000 in 1925. and that although the car ownership ner head of the population is high, there still exists a considerable margin for new sales as well as replacements Rubber tyres were imported to th' value of £1,230,000 last year, a fijzurf which gives some idea cf the relator business in accessories. This is expanding, in company with the general motor vehicle trade, and offers uivaluable opportunities for common enterprise.