The Tribune

BY NEIL HARTNELL

TRIBUNE Business Editor

nhartnell@tribunemedia.net

THE BAHAMAS Motor Dealers Association’s (BMDA) president yesterday asserted there is no panic over the 11 percent decline in new auto sales for the 2026 first half as he and other vendors “feel the pinch” of increased shipping costs and delays.

Ben Albury, Bahamas Bus and Truck’s general manager, told Tribune Business he would only have been “really alarmed” if the six-month industry-wide drop was in the 20-25 percent range.

Voicing optimism that the sales drop-off will not worsen over the remainder of 2026, he added that one good month could make up the gap on a strong 2025 which produced a 15 percent year-over-year increase in new vehicle transactions.

However, Mr Albury told this newspaper that himself, and likely other Bahamian auto dealers, have not only been impacted by increased shipping costs as a result of the Middle East conflict but also delays in receiving vehicle and parts shipments that have prevented fulfilling still-strong consumer demand.

Noting that this has impacted more than one auto brand that Bahamas Bus and Truck carries, he cited as an example one shipment that was due to arrive in August being delayed until first September and, now, November 2026. With dealers having to order vehicle inventory from suppliers up to four to six months in advance, Mr Albury said such delays inevitably “throw-off” business planning.

“We are slightly down but not to any major consequence,” the BMDA president told Tribune Business of the industry’s new car sales performance for the six months to end-June 2026. “We’re about 11 percent down over last year for the first six months.”

Asked whether the decline was concerning, Mr Albury replied: “No, it isn’t, not considering where we are right now. We still have almost half the year… we still have quite a bit of time to regain that percentage. If it was 20 percent to 25 percent down, I’d be really alarmed. It could be skewed by just one month.”

Vehicle sales are a key indicator for the strength of the Bahamian economy, and its underlying performance and fundamentals, as they give an insight into how robust consumer demand is due to their sensitivity to changes in purchasing power. The BMDA and its members are up against strong 2025 comparatives, as full-year sales beat 2024 by 15 percent - and were ahead of the prior year by 4 percent at end-November last year.

However, while industry sales “are doing very, very well,” Mr Albury disclosed that shipping costs and delays have emerged as a growing impediment to industry performance. “One of the challenges we are seeing is in shipping and receiving shipments,” he explained.

“The cost of shipping, we’ve had the Iran conflict going on for quite some time. Some of the transhipment ports in Asia have also been damaged due to typhoons. It’s always something we have to figure out. Just being able to get our allocation, get space in ports that are damaged. There are issues where shipping companies are having to re-route.

“It’s been tough. We’re lacking some of what we need. Sales have been good but we need to replenish both the vehicles and parts side. The demand is there. The sales are there.”

Giving an insight into what the shipping challenges have meant in practice for his dealership, Mr Albury disclosed: “We have a big shipment I was waiting on. It was supposed to arrive in August, then I was told it would be in September, and now it looks like November. These have definitely been a hindrance.

“For me personally, it’s a big issue as we project sales between four to six weeks in advance depending on who the supplier is. It’s kind of a guessing game where we will be in six months, or even four months, and when we have a shipment that’s already 30-50 percent extra time to delivery, you’re talking months and it’s definitely thrown off our planning that we’ve been counting on.

“It’s definitely been challenging, but at times you have just got to do what you can. I’m not seeing it [delays] from one manufacturer; I’m seeing it from more than one. I’m sure I am not the only one feeling the pinch.”

As to the shipping woes’ impact on the sales outlook for the remainder of 2026, Mr Albury added: “I’m pretty confident that if shipping starts to free-up and come in, I don’t see it getting any worse. Let me put it that way.

“I get concerned whenever I see issues on the demand side; I’m concerned no matter what, but currently it definitely makes things encouraging for me.”