THE ANALYSTS: Good look for Jamaica’s EV market

THE ANALYSTS: Good look for Jamaica’s EV market

The ANALYSTS of Taking Stock with Kalilah Reynolds say several companies listed on the Jamaica Stock Exchange (JSE) will benefit from the Government’s decision to reduce import duties on electric vehicles (EVs).

The resolution, which took effect on July 14, cuts import fees on EVs three years or newer from 30% to 10%. It also eliminates motor vehicle license fees for the next five years.

According to Minister of Finance, Dr Nigel Clarke, people who have already paid licence fees on EVs for this year can claim for the excess amount paid up to the effective date.

Investor Shanice Williams said that the move was great positioning as Jamaica’s first dedicated electric vehicle company, Flash Motors, gets ready to ramp up its operations.

Flash Motors, run by two Jamaican-Canadians, will supply a full suite of EVs, EV service equipment, and charging networks across the Caribbean, starting in Jamaica.

“Flash Motors has been working with the Government for some time now. The Ministry is actually testing out some of their EVs before the full launch to the public and they’re even looking at EV government fleets,” Williams said.

“We might even see some JUTC [Jamaica Urban Transit Company] fleets on the road, which is definitely going to cut down cost and be a lot better for the environment,” she added.

However, with less than 100 EVs currently on the road, Williams noted that the true impact of the Government’s decision will not be immediately felt.

Nonetheless, she noted that it does provide incentives to companies that are in the motor vehicle space and have been looking to branch out.

She pointed to Jetcon Corporation, a used car dealership listed on the Junior Market of the Jamaica Stock Exchange, as a potential example.

“The company principal says they have been waiting on this move and the company is already to bring in a lot more EVs,” Williams said.

She added that the reduced duties and eliminated license fees will significantly chop Jetcon’s expenses.

Meanwhile, battery and automotive products distributor, Tropical Battery, which is a relatively new member of the JSE, is also looking to enter the clean energy space.

“They have a new subsidiary which is Tropical Mobility, which is focused not only on bringing in EVs but also recycling EV batteries and offering charging networks as well,” she explained.

Overall, Williams said that the move will not only impact consumers but also investors as more companies begin to take advantage of the opportunity.

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Sashell Williams2024-09-03T21:40:31-05:00