The Mauritian automobile market is experiencing a significant downturn, with a 36% decline in new vehicle registrations during the first seven months of 2026 compared to the same period in 2025. A total of 7,850 new vehicles were registered, down from 12,319 in 2025. This decline is attributed to increased taxes introduced in the 2025-2026 budget. The premium segment is particularly affected, with some dealerships reporting a 50% decrease in sales.
Dealerships are struggling to cope with the decline in sales. Eric Leal, CEO of Groupe Leal, notes a 50% decrease in sales, while Arvind Surjoo, director of sales at Mercedes-Benz, acknowledges a significant drop. Jason Mc Intyre, commercial director of Bamyris, reports a 49% decline in car sales and a 72% decline in premium car sales. The decline in new vehicle sales has also impacted the used car market, with projected sales of 7,000 to 8,000 units for 2026, down from 13,000 in a normal year.
The Mauritian vehicle market is dominated by European, Japanese, and Chinese brands. According to the National Land Transport Authority, there are 335,400 private vehicles registered in Mauritius. Chinese car brands are rapidly gaining popularity, with Leapmotor and BYD recently entering the market. This influx of Chinese brands may provide a much-needed boost to the market.
The increased taxes have led to a significant rise in vehicle prices. Vehicles with engine capacities between 1,000 cc and 1,300 cc have increased in price by 200,000 to 250,000 rupees (approximately 3,800 to 4,700 euros). Some vehicle types, such as certain hybrid models, have become too expensive to import due to a 75% tax.
The decline in vehicle sales has been anticipated by dealerships, who warned of the consequences of increased taxes. The 2025-2026 budget introduced measures that have had a considerable impact on the automobile market, including the reintroduction of excise duties on hybrid and electric vehicles, increased excise duties and customs duties on conventional vehicles, and higher registration fees.
The used car market is also expected to decline, with projected sales significantly lower than in previous years. Zaid Ameer, president of the Dealers in Imported Vehicles Association, notes that used car sales are expected to be between 7,000 and 8,000 units for 2026, down from 13,000 in a normal year.
Despite the decline in sales, there is hope that Chinese brands may revitalize the market. The entry of Leapmotor and BYD, along with other Chinese brands, may provide a new impetus for the Mauritian automobile market. Key players in the market, such as Groupe Bernard Hayot and Mercedes-Benz, will need to adapt to the changing landscape.
Key points
- Chinese car brands are entering the Mauritian market, potentially providing a boost to sales.
- The Mauritian automobile market has declined significantly due to increased taxes.
- The premium segment is particularly affected, with some dealerships reporting a 50% decrease in sales.
