Pre-budget consultation: Motor dealers call for Government support to boost electric vehicle uptake

The Junior Minister of Finance, Mr Dhaneshwar Damry, met with representatives of the Motor Vehicle Dealers Association (MVDA), today in Port Louis, as part of ongoing consultations ahead of the 2026–2027 Budget. The meeting provided a platform for stakeholders in the automotive sector to raise concerns and propose measures to address current challenges.

In a statement after the meeting, the Secretary-General of the MDVA, Mr Mrinal Teeluck, indicated that the discussions were constructive, noting that the Junior Minister was attentive and receptive to the Association’s proposals. He highlighted that one of the key issues raised was the need to review taxation policies affecting electric vehicles, especially in light of the ongoing crisis in the Middle East and the resulting increase in global fuel prices.

Mr Teeluck pointed out that measures introduced in the previous budget—such as the removal of the negative tax and the imposition of duties on electric cars—have significantly impacted the market, contributing to a 68% decline in the sales of electric vehicles. According to him, these policies have made electric cars less accessible at a time when they should be encouraged as a more sustainable and cost-effective alternative.

He emphasised that the current context calls for incentives rather than restrictive measures, stressing that Government support is essential to boost the adoption of electric vehicles. Making such vehicles more affordable, he said, would benefit both consumers and the country.

Mr Teeluck further underlined that the MVDA is committed to continuing dialogue with the authorities. He noted that further meetings are expected to refine proposals and identify practical solutions that will support the sector while benefiting Mauritians.

He also highlighted the importance of collaboration with the Central Electricity Board to strengthen infrastructure and schemes related to electric mobility. With the right policies and partnerships in place, he expressed confidence that Mauritius can promote wider adoption of electric vehicles and ensure a win-win outcome for both the economy and the population.

30 April 2026

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Topics: Finance