The Trend of FOREIGN BUSINESS A Review of Overseas Developments
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During the Second Quarter of 1929. JTIFJSUALLY severe winter condi) tons retarded spring sales an Danzig to such an extent that agents can only hope to equal 1928 sales, instead of enjoying an anticipated 2030 per cent increase. German manufacturers control the heavy-vehicle market, but American makers lead in the sale of light lorries.
There has been an improvement in the demand for lorries and business vehicles in Denmark, particularly from the rural districts. Sales were excellent during the quarter, being estimated at 15 per cent. to 20 per cent above those made during the corresponding period of 1928. Heavy taxation is said to hinder sales.
The majority of Dutch commercialvehicle imports consists of chassis only, bodies being constructed locally. There has been an increased import of lowcapacity units, which is attributed to the use of trailers and six-wheeled lorries. These vehicles permit greater loads without encountering the severe road-speed and wheel-weight regulations.
Possibilities in Poland.
Selling in Poland has become almost wholly a matter of financing, and any disposition on the part of the financing companies to tighten up has its reflex on sales. Notwithstanding adverse financial conditions and a bad first quarter, however, sales have been greater than in any previous half-year. The Portuguese demand showed a considerable increate during the second quarter, and would have been still greater but for lack of funds. This was particularly the case in the agricultural districts, owing to the failure of many crops during 1928. With' the improved roads and the promise of better crops this year, however, more prospects are now in the market. The use of lorries is constantly increasing, particularly in the northern provinces. At present 30-cwt to 2A-ton models are in greatest demand.
Sales in Spain.
The second quarter witnessed greater activity than has ever before been seen in the Spanish market, the chief disturbing factor having been the decline in value of the peseta. About fourfifths of the new lorry registrations for the quarter were American models. High-priced vehicles of the same nationality are entering the market, and sales are reported as successful.
Business conditions in Kenya and Tanganyika have been unfavourable for the motor trade. In Uganda, however, good crops have. improved conditions, and third-quarter sales are expected to be very good.
In China the feature of the quarter was the formation of the Allied Motor Association of China, membership being composed of motor agents and importers in Shanghai. Previous attempts to form a similar organization had been unsuccessful, but recent events had demonstrated the value of being able to present problems in a concerted manner before the public and the Government. Ens operators in the interior have found that it is not wise to buy second-hand passenger cars for conversion into public-utility vehicles.
Business in Australia has been dull, particularly in heavy-duty lorries, although some increase has occurred in the sales of light models. Registrations increased in June and totalled 1,742 units, of which 91 per cent were American and 50 per cent were sold in New South Wales.
Activity in Argentina.
In Argentina, the demand was considerably in excess of that in 1928. A noteworthy feature was the increased buying of 2-ton to 34-ton units Xespecially in the Province of Santa Fe) for -use in grain hauling. American lorry interests claim that competition on the part of other countries is decreasing. Terms of sale continue to be a means for competition, and periods of 18 months and even 24 months are allowed for payment.
SaleS in Bolivia for the first half of the year were very good. So far, motorcycles have not been used by commercial houses, but if stores could be persuaded to install delivery services a considerable market for commercial sidecars would be created.
Manufacturers of higher-priced lorries appear to be getting more business than formerly in the Province of Sao Paulo, Brazil. It is believed that fully 50 per cent, of the lorries in the State are operated for hire, the others in the main being used either privately or on some sort of co-operative basis.
There was considerable activity during the quarter in Cuba, mainly the result of the opening up of sections of the great Central Highway which is now under construction. Light types arc-'the most favoured.
During the second quarter sales in Peru continued at a high level. The beginning of the cotton export season has been a factor contributing to such a satisfactory condition, and, a good crop is expected to stimulate the trade.