Susan Gordon, Business Reporter

State Minister Fenton Ferguson alighting from a 2006 Toyota Land Cruiser in this April 2007 Gleaner photo. Sales of SUVs have climbed in August, with some dealers attributing the increase to election activity. - File

Major players in the automotive industry say the election campaigns have been good for business and are reporting increase in sales by four per cent or more.

They said, outside of the usual business from private individuals, more government and private-security agencies have been purchasing vehicles.

The National Contracts Com-mission, for instance, endorsed a contract in July to Toyota Jamaica Limited for $222 million, representing motor vehicle purchases for the police by the Ministry of National Security, some for the general election.

In fact, this year August - a usually slow month for auto sales as back-to-school expenses and college tuition fees take precedence - car dealerships have been cashing in.

4 per cent over the norm

"It would probably be around four per cent over the norm in any one year," managing director of Toyota Jamaica Limited, John Connell, told the Financial Gleaner, describing the nature of sales for the August. "Government is purchasing vehicles for their security forces."

He added that election periods in most countries are always good for the automotive business.

It is not clear the types of vehicles being sought, but, based on the observation of Diana Stewart, general manager of Stewart's Auto Sales Limited, sport utility vehicles are hot picks.

"Private-security companies and the government entities are buying up these vehicles," said Stewart. "I would concur it's a little more than a four per cent increase for August."

Stewart's is dealer for the Suzuki and BMW brands. Stewart observed that usually, the closer it gets to the back-to-school period, the more sales taper off.

Honda dealers, ATL Motors, have also seen a boost in sales.

"This has been the best August we've had in years. All the CR-Vs have been sold out up to November," said general manager of sales at ATL Motors, Christopher DaCosta.

Best August in years

However, he did not attribute the company's performance to the general-election season or the economy. Instead, he said, there was a naturally high demand for Hondas because of the quality.

DaCosta said Hondas were not fleet vehicles and that the purchasers were mainly private individuals, banks and insurance firms.

The Issa Transport Group (ITG) was the only dealer polled who said sales were flat.

Managing director Brian Stevenson said he had seen no sharp changes in sales for the season in either direction.

ITG represents the Mitsubishi, Benz, Audi and Volkswagen brands.

susan.gordon@gleanerjm.com