Sri Lankan car dealers are in talks with authorities for further concessions on duties imposed in the last budget, sources said. “Many car dealers are in discussion with the Ministry of Finance to reverse the taxes,” a source told the Business Times. According to him, they want the level of duty based on value of [...]

The Sunday Times Sri Lanka

Lankan car dealers want more concessions

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Sri Lankan car dealers are in talks with authorities for further concessions on duties imposed in the last budget, sources said. “Many car dealers are in discussion with the Ministry of Finance to reverse the taxes,” a source told the Business Times. According to him, they want the level of duty based on value of the vehicle (not) on engine size or fuel type and they say that it must be applied in progressive slab.Meanwhile Carmudi, an online vehicle classified website, has analysed thousands of its car listings from various Sri Lankan cities to find out about car mileages.

The research team gathered and compared averages of mileage based on brand, fuel type, as well as age, with cars ranging from two to five years old and had discussion with some 20 car dealers,” Firaz Markar, Managing Director Carmudi told the Business Times.The average mileage for cars in Sri Lanka was 38,500 km, which is 9 per cent lower than the average across Carmudi markets (42,000 km), according to the research. “The youngest cars averaged 23,000 km while 5 year-old cars reached an average mileage of 57000 km. The samples had dealers who deal with new cars, he said.

A factor leading to Sri Lanka’s lower average mileage may be a lack of roadways conducive to long-distance travel on the island. With over 70 per cent of traffic in the country being carried out on national roads, it is vital that they be well maintained, a Carmudi media release stated.Uncontrolled roadside development and substandard maintenance hinder traffic.” A good quality of interstate roadways is essential, as over 65 per cent of the country’s populace lives in the villages, making them dependent on interconnected roads, according to the release.

After investigating the effect of brand on mileage, the Carmudi team found that Japanese brands travelled the most distance before being offered on Carmudi.lk. Makes like Honda, Toyota and Nissan range between 31,000 km and 34,000 km. The highest mileage belongs to Suzuki with an average 47,000 km travelled, it added.“Carmudi looked at the effect of fuel type on mileage. The cars with the highest mileage run on diesel fuel, averaging 49,000 km. They are followed by hybrids (29,100 km) and petrol-fueled cars (22,000 km). The reason for diesel cars being driven the furthest, could be that diesel engines can be up to 15 per cent more fuel-efficient, encouraging longer commutes.”

Mr. Markar said that the low cost per kilometre associated with diesel vehicles is a key factor in the higher usage seen in these types of vehicles. “However, we expect to see hybrid vehicles overtake the usage levels of diesel vehicles in the future due to customers being able to gain similar mileage along with more environmentally friendly combustion. Average resale values for hybrid vehicles also tend to be higher than diesel counterparts. We’re glad to see this trend of getting more bang for the buck while also being more environmentally conscious,” he added.

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