Ugandan motorists brace for higher car prices after EU export ban

Ugandan motorists and car dealers are likely to face higher import costs but better-quality vehicles after the European Parliament approved new legislation barring the export of unsafe and highly polluting used vehicles from the European Union.

The legislation, passed by 437 votes, prohibits EU member states from exporting vehicles that fail mandatory roadworthiness inspections, are beyond repair or no longer meet European safety and emissions standards.

The rules, which cover a vehicle’s entire lifecycle, will be phased in over the next five years, although some European countries are expected to implement them earlier.

For Uganda, where second-hand imports dominate the vehicle market, the decision is expected to reduce the supply of low-cost vehicles while improving road safety and environmental standards.

Under the new law, every used vehicle destined for export must carry a valid roadworthiness certificate, effectively preventing dealers from shipping vehicles that would not be legally allowed on European roads.

The United Nations Environment Programme (UNEP), which supported the reforms, described the legislation as a major shift in global vehicle trade.

“This is the first major exporting bloc to say that if a vehicle is not fit for European roads, it should not be exported elsewhere,” UNEP said.

Uganda imports the bulk of its vehicles second-hand, with most entering the country through the Port of Mombasa before being transported by road.

Data from the Uganda Revenue Authority (URA) shows motor vehicles remain among Uganda’s largest import categories. While Japan supplies the majority of used vehicles, significant numbers also originate from the United Kingdom, Singapore and several European countries.

Industry estimates indicate that more than 80 percent of vehicles imported into Uganda are used, with many between eight and 15 years old.

The reforms could significantly alter that market by eliminating vehicles that have traditionally been exported despite having serious mechanical or environmental defects.

Such vehicles often arrive with worn braking systems, faulty airbags, damaged emission-control equipment or engines that would not pass inspection in Europe.

Although these vehicles are usually cheaper to purchase, buyers frequently incur higher maintenance costs, increased fuel consumption and expensive repairs.

The reduced availability of lower-priced vehicles could push up import prices in Uganda as dealers compete for better-maintained units that meet the new export requirements.

Vehicle importers may also increasingly source stock from countries outside the European Union. However, similar restrictions are beginning to emerge elsewhere.

China already requires mandatory inspections before used vehicles are exported, while UNEP is encouraging other major exporters, including Japan, South Korea, the United Kingdom and the United States, to adopt comparable measures.

The legislation also has implications for Uganda’s road safety and environmental agenda.

Uganda continues to record thousands of road crashes each year, with police statistics showing that vehicle defects, speeding and human error remain among the leading causes of accidents.

Older vehicles also contribute significantly to urban air pollution because of poor engine performance and outdated emission-control systems.

The European reforms complement measures already adopted by East African Community (EAC) partner states.

In 2022, the regional bloc introduced Euro 4-equivalent emissions standards for imported passenger cars and light commercial vehicles, alongside Euro IV standards for heavy-duty vehicles, in a bid to reduce vehicle emissions across the region.

If fully implemented, analysts say the new European rules could accelerate the transition to cleaner and safer vehicle fleets in Uganda, even as consumers and importers adjust to potentially higher purchase prices.