Business Times

United Motors to launch assembly plant

By Bandula Sirimanna

The demand for brand new vehicles in the country has fallen to a very low level as a result of high levels of taxation of 300 to 400% on imported vehicles, in force during the past few years, resulting in some companies considering assembling vehicles.

The industry was further hit in the last financial year due to the slowing down of the local economy following the global economic crisis, according to Ranjit Fernando, Chairman of United Motors Lanka Plc in his review of the un-audited accounts of the Goup for the six months period ending September 30, 2009. The adverse impact on demand was further exacerbated during the first six months of this financial year as a consequence of a steep appreciation in the value of the yen, he added.

United Motors total sales of brand new vehicles during this period was 4,438 vehicles, down sharply by 68 % from 15,499 vehicles in the 6-month during period last year. He said the first quarter of the financial year was marked by high interest rates charged on the company borrowings, further compounded by curtailed lending by financial institutions to the automobile sector.

Representations were made to the taxation commission by the industry and it is hoped that a downward revision will be made at the earliest opportunity. In order to take advantage of the lower duty structure that applies to locally assembled vehicles, United Motors intends commencing the assembly of a well reputed Chinese brand of vehicles shortly, he added.

Many small car sales centres are experiencing difficulties although the registered card sales recorded a slight increase, according to the General Secretary of the Automobile Dealers Association, Faiz Zahir. He said at least 20 car sales centres have been shut down as they didn’t have sales in the past few months.

Top to the page  |  E-mail  |  views[1]
Other Business Times Articles
Shell Gas urges proper regulation
Nisol directors taken to court by Sampath Bank
First lender, now trader
Some Jetwing hotels to go ‘public’
Raj sheds Galleon's local investments
Land clearance an issue for BOI projects
United Motors to launch assembly plant
New way to meet the press: By phone
Comment - Tourism: Frying pan to the fire
Assessing the ICTA
Gen. Fonseka spells out strategy in achieving ‘Mission Impossible’
Higher education for the 21st Century Project
Plantation sector neglected by investors
SLIC case petitioner says auditors should return fees
Space Agency Act coming soon
GSK, Dialog, MAS support “Light to Life”
Tourism about values, not numbers
IMF in Sri Lanka: Playing politics or Good Samaritan?
TRC Act to be amended
SLFI convention on Tuesday
Toilet paper takes centre stage at laxative launch
Singapore Passenger Cruise Terminal
Regional telecom regulators discuss regional issues, seek consensus
Comment - Share Market – Incentive to gamble
HNB wins top annual report award
South Asian economics undergraduates meet in Dhaka
Producers and food processors meet next year
UN–HABITAT invites micro finance agencies to upgrade under-served settlements
Citi awarded Dialog Telekom cash management mandate
Cyber Concepts awarded ISO 9001: 2008 Certification
‘Intense’ e-Asia promotion for Kandy, Kurunegala and Galle


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2009 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution