John Myers Jr, Business Reporter
The Mitsubishi Outlander. SUVs are still in high demand in Jamaica despite rising fuel costs. - File
Jamaica's crave for gas-guzzling vehicles remains strong, with sport utility vehicles (SUVs) continuing to top new-vehicle sales despite spiralling fuel prices that see motorists paying out more at the pumps.
Regular gas or 87 octane is now flirting with a $70 per litre price, while diesel last week surpassed premium gas or 90 octane and is selling at up to $75 at Kingston pumps.
President of the Automobile Dealers Association (ADA), Kent LaCroix, while not giving precise figures, said SUV sales accounted for the greater percentage of the 6,500 new vehicles sold last year. Overall, the new vehicle market was 30 per cent improved over 2006.
LaCroix, however, noted that SUVs were becoming more fuel-efficient as automakers offer options with smaller engines, for example the Toyota RAV4, Honda CR-V, Nissan X-Trail, Subaru Forrester and BMW X3.
Smaller cars
At the same time, the number of car buyers shopping for smaller, more fuel efficient cars is trending up, but still not enough to top those shopping for SUVs, he said.
Those looking to save on fuel typically purchase vehicles with engines ranging from 1300cc - 2000cc, said LaCroix.
Choices below the 1300cc segment is limited - just about two dealers offer them - as most cars in this range did not come with automatic transmission, which, the ADA president said most Jamaican drivers prefer.
Supplies of hybrid or flex-fuel vehicles are virtually non-existent, with the exception of GM Challenger - the representatives for General Motors in Jamaica - which sells the flex-fuel Chevy Avalanche.
Energy Minister Clive Mullings said last week that the challenge now was for dealers to get trained technicians who would be able to service such vehicles.
In the used car segment of the market, buyers are being more conservative in their choice of vehicles, as more of them hunt for vehicles that give the best mileage on the gallon.
According to Used Car Dealers Association (UCDA) President Kenneth Shaw, there has been a 15 per cent to 20 per cent shift towards purchase of vehicles with smaller engines, including a recent move to trade in gas guzzlers.
High-end sales
"In the last couple of months, a lot of people have been trying to sell their high-end, bigger-engine vehicles. They are getting rid of the V8s and some of the V6s and going for 1500cc, 1800cc and 2.0-litre (2,000cc) cars and the smaller engine SUVs," Shaw told Wednesday Business.
"You'll find that the vehicles with the larger engines - the V6s and V8s - they normally stay on the lots longer and people tend to shy away from them."
The Toyota Tundra and Dodge Rams were most affected, he said.
Meantime, cars like the Honda Fit, Mazda Demio, Nissan March and Suzuki Swift - once considered items for the entry-level motor vehicle buyer - have now gained wide appeal because of their fuel efficiency.
"They are small, they are economical and they'll give you probably 50 miles per gallon going to the country," said the UCDA president, who is also the owner of KACS Auto Sales Limited.
Service stations add their respective mark-ups to the prices quoted by state refinery Petrojam Limited.
Last week, the refinery sold 87 octane at $60.60 per litre, compared to $50.02 a year ago; 90 octane for $62.04 per litre, compared with $51.47 a year ago; while diesel was $66.76 per litre, against the quoted price of $41.97 per litre last year.
The rising cost of fuel tracks with world oil price movements. Oil has risen to about US$112 per barrel since this year, but yesterday fell back to US$100.
john.myers@gleanerjm.com
