The proposed system would cover new and used vehicles, while recently closed showrooms are reportedly set to reopen.
ADDIS ABABA — Ethiopia is preparing to introduce government-determined maximum prices for new and used vehicles from October 20, 2026, according to a Global News report citing unnamed sources.
The report says a draft proclamation establishing the nationwide price-control system will be submitted to the House of Peoples’ Representatives in the coming days. Parliamentary approval and official publication would be required before the proposed controls become legally enforceable.
The Council of Ministers reportedly discussed the draft during an informal emergency meeting and decided that several vehicle showrooms affected by recent enforcement measures should be allowed to reopen immediately.
No information was provided on the number of businesses covered by the reopening decision or the conditions they must satisfy before resuming vehicle displays and sales.
Price limits to cover new and used vehicles
According to the report, the proposed ceilings would apply equally to new and previously owned vehicles sold throughout Ethiopia.
The Ministry of Transport and Logistics reportedly plans to calculate the maximum price of each vehicle using two principal factors: its manufacturing year and the original ex-factory price at which it was first supplied by the manufacturer.
Authorities are said to be contacting vehicle-producing countries and manufacturers directly to collect reference prices and other information required to establish the national vehicle-price index.
The report does not explain how the calculation will account for freight, insurance, customs duties, VAT, foreign-exchange movements, mileage, vehicle condition, depreciation, maintenance history or dealer operating costs.
It also does not specify whether locally assembled vehicles, imported electric vehicles, commercial vehicles and privately resold cars will be subject to the same pricing methodology.
October 20 implementation targeted
The Ministry reportedly intends to implement the new price index nationwide beginning Tikimt 10, 2019 E.C., equivalent to October 20, 2026.
However, that date remains an implementation target because the draft proclamation has not yet been approved by Parliament. The proposed price ceilings cannot be treated as legally effective until the final legislation and the detailed implementation rules are officially published.
No draft text, proclamation number, model-specific price schedule or enforcement procedure has been disclosed.
Closed showrooms reportedly allowed to reopen
The reported reopening decision follows enforcement action requiring brokers and commission agents to remove third-party vehicles from premises not licensed as vehicle dealerships.
That enforcement left many showrooms and vehicle yards partly or completely empty, reducing the number of cars physically available for customers to inspect.
It remains unclear whether the new decision covers all affected businesses or only properly licensed importers and dealers. Authorities have also not clarified whether brokers will be permitted to display vehicles again or whether they will remain limited to connecting buyers and sellers for a commission.
Possible impact on Ethiopia’s vehicle market
A transparent reference-price system could narrow differences in asking prices and make it easier for buyers, banks and insurers to assess vehicle values. Reopening authorised showrooms could also restore physical inventory and improve customers’ ability to compare vehicles.
However, the commercial effect will depend on whether the ceilings reflect import costs, taxes, exchange rates, vehicle condition and reasonable dealer margins. Limits set below businesses’ actual costs could reduce formal supply or move transactions into less transparent channels.
Vehicle buyers, importers, dealers and brokers should therefore wait for the approved proclamation and detailed price schedule before treating the reported system as implemented government policy.