AUTOMOTIVE JAMAICA
Regardless of whether they are new or used, cars are engines of growth for Jamaica's economy.
How did you identify your products and target markets?
ANDREW JACKSON We started in 1991 with car care products. That did well, and in 1994, we started importing used cars from Japan. There was a change in legislation in 1994 that lowered the import tax on used cars for resale. We were among the first to tap into this market. Since then, we have found that the best combination of price, quality, and availability of right-hand-drive cars comes out of Japan. There is low-cost shipping as well. It is more economical to ship from Japan to Kingston than Miami to Kingston. It is counterintuitive; however, it is a question of volume. There are huge ships carrying 7,000-8,000 cars that stop in Jamaica every week on their way to the US. For a market like the UK, which also uses right-hand-drive cars, the cost of shipping is also expensive. The cars are more expensive as well. Some of the policies in Japan also work in our favor. The Japanese government gives car owners incentives to sell their cars after a short time. In Japan, the price of cars drops sharply after three years. This is where we tend to come in. The Jamaican market's response to Japanese cars is fantastic.
GREGORY WEBSTER We initially represented Nissan, Nissan Diesel, and Nissan Forklift. Since then, Nissan Forklift has changed to UniCarriers, though we are still its representative. We also represent Zhengzhou Nissan ZNA out of China. Our initial focus was the pick-up, which is Nissan's prime product, and have made major inroads into the bauxite-manufacturing sector and among farmers and professionals. The main focus of Jamaica's market is currently SUVs, and we mostly concentrate on those vehicles. Our business is mainly pick-ups, buses, panel vans, and SUVs such as the X-trail and Pathfinder. Though Jamaica's used car market is roughly twice the size of its new car market, we deal only in new cars. There is always a market for new cars because banks give customers preferential rates, and new car dealers offer attractive warranties.
What are your goals and objectives in the coming year?
AJ We seek to grow by about 40-50% in terms of sales and profit, and want to expand outside of Kingston. We are also looking at the possibility of exporting to other Caribbean countries. Jamaica is centrally located in the region, and there are shipping services that handle cars. Jamaica can be a hub here for the automotive sector, including cars and parts. Cars going to many different islands typically come here first. Therefore, we could provide value-added services such as servicing and repairs. We would like to maintain growth at our current rates for another two or three years. The aim is to get to about 10% market share. We expect to accomplish this by raising more capital. For a few years, we have been preparing ourselves for an IPO, ensuring our accounts were in order and the systems were in place. It makes raising capital much easier, and we do not pay income tax for five or 10 years after joining the stock exchange. This way, we can buy more cars and expand.
How do you see the market being impacted by rising demand for electric cars?
GW With the new global push for electric vehicles, we seek to get the government to lower the duties on electric vehicles, as we all want to be environmentally friendly and go green. There is a large push for everyone to go green; however, for us to feasibly do so with electric vehicles from the manufacturers' side, there has to be input from the government and infrastructure development. Jamaica Public Service Company (JPS) is also pushing for electric vehicles; however, the government needs to provide a tax incentive to encourage people to buy electric vehicles. Electric vehicles are slightly more expensive than conventional vehicles, and if they have high taxes, people will stick with conventional cars.
AUTOMOTIVE JAMAICA
TABLE OF CONTENTS
Interview
Most Honourable Andrew Holness, Prime Minister, Jamaica
TBY talks to the Most Honourable Andrew Holness, Prime Minister of Jamaica, on efforts to foster sustainable and inclusive growth, the main challenges ahead for the nation, and its key successes in improving the business environment.
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Diane Edwards, President, Trade & Investment Jamaica (JAMPRO)
TBY talks to Diane Edwards, President of Trade & Investment Jamaica (JAMPRO), on making investments throughout the whole value chain, becoming a regional distribution hub, and boosting niche agricultural output.
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Courtney O. Campbell, President & CEO, Victoria Mutual
TBY talks to Courtney O. Campbell, President & CEO of Victoria Mutual, on the origins of financial inclusion in Jamaica, helping people get a start on their property journey, and assisting young businesses to exploit a positive business environment.
read articleInterview
Raymond Walker, Founder, Chairman & CEO , Caribbean Assurance Brokers Ltd. (CAB)
TBY talks to Raymond Walker, Founder, Chairman & CEO of Caribbean Assurance Brokers Ltd. (CAB), on fighting for its clients, using environmentally sound methods to drive down costs, and continuously driving innovation.
read articleInterview
Emanuel DaRosa,, President & CEO, Jamaica Public Services (JPS)
TBY talks to Emanuel DaRosa, President & CEO of Jamaica Public Services (JPS), on pursuing common goals in the best possible way, utilizing Jamaica's most abundant natural resources, and satisfying half of Jamaica's energy needs through renewables.
read articleInterview
Winston Watson, Group General Manager, Petroleum Corporation of Jamaica (PCJ)
TBY talks to Winston Watson, Group General Manager of Petroleum Corporation of Jamaica (PCJ), on keeping a hand in both green and black energy, helping the government reach its 2030 Energy Vision targets, and educating people on the importance of conservation.
read articleFocus: LNG Investments
Light My Fire Jamaica
The Jamaican government is pushing private investment in liquefied natural gas (LNG) to provide cheaper and cleaner energy to households and businesses. Through partnerships with local and international companies, New Fortress Energy is leading the way to ignite this sector.
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Gordon Shirley, President & CEO, Port Authority of Jamaica (PAJ)
TBY talks to Gordon Shirley, President & CEO of the Port Authority of Jamaica (PAJ), on the country's developing role as a logistics hub, attracting more cruise ships, and his outlook for the economy at large.
read articleInterview
Fritz Pinnock, President, Caribbean Maritime University
TBY talks to Fritz Pinnock, President of Caribbean Maritime University, on capitalizing on the rising power of the global south, customizing goods before they reach the final consumer, and leveraging Jamaica's geostrategic location to create added value.
read articleInterview
Winston Adams, JP, Executive Chairman, University of the Commonwealth Caribbean (UCC)
TBY talks to Winston Adams, JP, Executive Chairman of the University of the Commonwealth Caribbean (UCC), on the university's illustrious history, its upcoming strategies, and Caribbean Knowledge City.
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Michael Williams, Acting Executive Director , Mona School of Business and Management
TBY talks to Michael Williams, Acting Executive Director of Mona School of Business and Management, on maintaining quality across its programs, its achievements in the Caribbean, and the school's research-based approach.
read articleFocus: Downtown Kingston Revitalization
Drinking from the Fountain of Youth
Although the subject of much talk, downtown Kingston has been relatively neglected for many years while surrounding areas of the city attracted more real estate developments. A series of public and private investments indicate that the trend is finally reversing.
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Timothée F. Delebarre, Country Manager, VINCI Construction Grands Projets (VCGP)
TBY talks to Timothée F. Delebarre, Country Manager of VINCI Construction Grands Projets (VCGP), on diversifying their business lines, expanding Kingston's Port, and developing innovative financing mechanisms.
read articleInterview
Dittie Guise, General Manager, Montego Bay Convention Centre (MBCC)
TBY talks to the late Dittie Guise, General Manager of Montego Bay Convention Centre (MBCC), on marketing the convention center, creating an integrated tourist experience, and preparing for more events and visitors.
read articleFocus: Linking Tourism
Lifting All Boats in the Rising Tide
Although significantly contributing to the economy, tourism in Jamaica suffers from an inadequate level of linkage with other sectors. The government, in partnership with private actors, is launching a number of initiatives to ensure that international tourists meet local businesses.
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Natalie St. Louis, Founder, CEO & Managing Director, Strategic Konnections & Management Services Limited
TBY talks to Natalie St. Louis, Founder, CEO & Managing Director of Strategic Konnections & Management Services Limited, on working with businesses to further their goals, the importance of engaging with consultants, and goals for the coming year.
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