The automotive sector in Mauritius will experience positive dynamics thanks to favorable budgetary measures. At least that's what dealers are predicting. However, challenges persist, including rising freight costs and illegal competition in the market.

Mrinal Teelock, secretary general of the Motors Vehicle Dealers Association (MVDA), is adamant. According to him, the renewal of the negative excise duty of Rs 200,000 on the purchase of electric vehicles until June 2025 will provide a boost in the sale of hybrid vehicles. “In fact, we have seen a steady increase in the sale of such vehicles since the measure came into force two years ago. I am confident that the trend will continue,” he says.

Ally Dusmohamed, director of the Autonexx company, agrees. “The extension of the excise duty for the purchase of electric vehicles until next year will undoubtedly provide a further boost to the sale of hybrid vehicles. Moreover, we are seeing more and more interest in electric and economical cars among Mauritians,” he points out. Furthermore, this year, new models of hybrid cars will appear on the local market according to him. “With a greater range, this will further boost the automobile fleet in Mauritius,” explains the speaker.


Mrinal Teelock also expresses relief regarding the assistance granted to dealers to avoid a post-COVID-19 price spike, in the form of a 45% or 55% reduction in the Excise Duty for thermal vehicles which will now be permanent . “The aid was to end on June 30. But it was announced in the Budget that from July 1, 2024, the support will be permanently replaced by a general revision of the Excise Duty rates corresponding to the same amounts,” he says. Dealers have made significant investments since COVID-19 and this measure, he will say, will help them get back on track.

Ally Dusmohamed will not say the opposite. “We are relieved to learn that the support has become permanent. Now we will be more financially stable and we will be able to implement long-term strategies,” says the dealer.

Budget 2024/25

Key measures for the automotive sector

  • The negative excise duty of Rs 200,000 for the purchase of electric vehicles will be extended until June 2025.
  • The CEB will install prepaid public charging stations.
  • Investment in the renewal of police force vehicles.
  • Duty free for registered fishermen to purchase a 4×4 vehicle will be provided.
  • For parents of all children under the age of 18 with a disability, a duty-free concession on a motor vehicle will be granted.
  • Tax-free facilities will be provided for the purchase of cars every 7 years to all registered priests of all religions.
  • For taxis, the single VAT exemption for the purchase of a car will be increased by 20% to Rs 120,000.
  • DBM will provide loans at an interest rate of 2.5% to taxis over a period of 7 years.

Hybrid vehicles

Sales share increases from 24% to 46%

It has been two years since the government removed excise duties on electric and hybrid vehicles. According to figures from the Ministry of Finance, the impact of this measure was instantaneous. The share of sales of electric and hybrid vehicles increased from 24% to 46%. To continue to support this transition, the reimbursement of Rs 200,000 for the purchase of an electric vehicle is renewed until June 2025, with no power limit for individuals and for vehicles up to 180 kW (approximately 240 hp ) for companies.

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