Analysis Of Government Policy On Financial Performance Of Zimbabwe Motor Industry: Case Study Of Croco Motor.

ABSTRACT The aim of the research is to analyze the government policies on financial performance of Zimbabwe Motor industry. The literature on the research study constituted all the objectives of the research study and what other authors have said about the government policies on financial performance. Questionnaires were used as the main data collection instruments essential in the collection of data. Primary and Secondary sources were both used to obtain data. The targeted population size used in this research was 55 and the sample size was constituted by 33 respondents. The information obtained from the data collected was analyzed by making use of a spread sheet and it was presented by making use of simple tables and graphs. From the research the research findings also show that t1he Zimbab1we import1ation poli1cy o1n secon1d han1d vehicl1es impo1sed b1y governm1ent i1s re1sponsible f1or th1e decrea1se i1n dem1and o1f n1ew ve1hicles fr1om lo1cal automo1bile de1alers. High utility charges has been affecting greatly on the financial performance of the industry. The researcher has also discovered that the industry is so much in need of capital therefore the government can use its policies to encourage Foreign direct investment and this can also attract foreign investors to invest in automobile sector. The recommendation was that, Zimbabwe 1Motor 1industry 11should 1sell 1vehicle 1parts 1for 1gray 1imports 1as 1well 1as 1servicing 1grey 1imports 1so 1that 11they 1can 1improve 1their 11profitability1. C1roco 11Motors 1must 1try 1to 1collaborate 1with 1banks 1and 1financial 1institutions 1in 1making 1sure 1that 1the 1potential 1customers 1have 1access 1to 1vehicle 1loans 1despite 1the 1lack 1of 1collateral 1security1