The automotive industry is a highly competitive and technology-intensive industry. It requires large economies of scale and high degree of specialization in parts and components manufacturing. The relatively small size of the domestic market is made worse by the entry of smuggled used vehicles.
This Policy Notes analyzes the exacerbating issue of auto smuggling in the country. It shows the murky policy environment that has hampered efforts to address it and examines the extent of its negative impacts on government revenues and in our bid to develop a globally competitive auto industry.