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Govt. To Cut Vehicle Imports By 30 Per Cent


coolcar

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What's up with our fellow Autolankans today, both this and VVTi's post in Post Whoring thread on this subject seem to have gone under the radar.

If the government wants to cut the import of vehicles shouldn't they start by limiting the number of permits they are offering left right and center these days??? It smells like a certain individual has diverted his interest from sending rockets to assembling cars LOL....

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What's up with our fellow Autolankans today, both this and VVTi's post in Post Whoring thread on this subject seem to have gone under the radar.

If the government wants to cut the import of vehicles shouldn't they start by limiting the number of permits they are offering left right and center these days??? It smells like a certain individual has diverted his interest from sending rockets to assembling cars LOL....

Seems they will limit the permits ......

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Knowing the logic of our government, I doubt the people would get a cheaper alternative either. Remember Micro? they will tax the F out of anything that gets assembled here to the point that they are no cheaper than any import. After all, they never mentioned about the consumer side of the matter..just that they want to cut imports. I doubt that they will be willing to take the tax revenue hit that will ensue.

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I doubt that this will happen any time soon. Remember the rumour about the tax going up?

Meanwhile the second hand market keeps going down.

There was an article in sunday times about a change in tax right?

Edited by Magnum
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Only positive aspect of vehicles assembled locally will be employment for a limited number of people. To import CBU UNITS (completely built units) are the most cost effective for the buying public. CKD and SKD vehicle component assembly for any country practicing open economy has proven to be a disaster except on a tie with a major internationally renowned large volume vehicle manufacturer with export capability to sell units worldwide. It may also create a monopoly locally and make some people very rich due to tax holiday for the investor. End result the consumer will be the loser!!

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Only positive aspect of vehicles assembled locally will be employment for a limited number of people. To import CBU UNITS (completely built units) are the most cost effective for the buying public. CKD and SKD vehicle component assembly for any country practicing open economy has proven to be a disaster except on a tie with a major internationally renowned large volume vehicle manufacturer with export capability to sell units worldwide. It may also create a monopoly locally and make some people very rich due to tax holiday for the investor. End result the consumer will be the loser!!

This seems to be a recurring theme nowadays noh?

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How can you save anything on our foreign currency reserve, by assembling vehicles locally if everything needed for assembly needs to be imported from overseas..............

Also the local market is not big enough to attract major auto makers to build plants here, and too expensive and does not offer enough skilled personel to serve as an export base compared with India and China.

Even simple things like diverting all imported motors to Hambantota has just added to costs as most vehicles still need to be transported to Colombo.

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Well i would agree with Don.But still we may able to produce parts such as rubber beadings,tyres,pastics even metal castings,gear wheels etc in Sri Lanka

May be producing low cost cars (Cars such as Toyota Etios) with standard options and retiring old vehicles (may be more than 15 yrs old ),further reducing car imports would be a good way of making a local market.

Dont know whether it would make a enough production volume,if not we may be able to export cars,as Suzuki india is trying to set up an assemble plant in Sri Lanka.

I dont thick there would be a problem of finding skilled technicans as lots of qualified techicans pass out from instititues such as German tech,Japan tech etc.

But it should be fair on consumers side as other members stated.

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Well i would agree with Don.But still we may able to produce parts such as rubber beadings,tyres,pastics even metal castings,gear wheels etc in Sri Lanka

May be producing low cost cars (Cars such as Toyota Etios) with standard options and retiring old vehicles (may be more than 15 yrs old ),further reducing car imports would be a good way of making a local market.

Dont know whether it would make a enough production volume,if not we may be able to export cars,as Suzuki india is trying to set up an assemble plant in Sri Lanka.

I dont thick there would be a problem of finding skilled technicans as lots of qualified techicans pass out from instititues such as German tech,Japan tech etc.

But it should be fair on consumers side as other members stated.

Why would you retire a perfectly fine car with all amenities and introduce a low cost unsafe car with no options? Tell me if you had a limited budget but you put enough emphasis on safety and the maintenance side of the story would you go for a newer car which is not well built as the older Japanese or European cars or stick with a good well built proper car from 15 years back?

I myself would stick to a 15 year old car which is actually built very well than the Tata's, Maruti's, Geely's and etc.

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Seems they will limit the permits ......

Many people say that P.B.Jayas...... is the culprit. Excessive permits led the country unruly , bribery, corruptions, narcotic status and ate the foriegn currency reserves earmed by people (not the permit holders). At the history, these permits were gifted to real professionals.

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The government says they suspended the permission but the reality was Maruti was not so keen on starting operations here anyway. They only wanted to assemble CKDs here only for the local market. Knowing our politicians, they probably wanted some kickbacks which Maruti refused.

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Actually Crosswind it is not a viable project to start local assembly in Sri Lanka if you are looking to sell them outside. Even if its for the local motorists the amount that you spend will take longer to come in as profits. Believe Cherry was also going to assemble cars here but they've also gone silent. The ST article talks about local input, but what have any governments done to the local industries to help them grow.

Its a shame that us as a country who talk about all our rich history cant still do 10% of what our ancestors have done.

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There is a slight chicken and egg issue here. There has never been any real motor industry in SL so clearly there are very few local suppliers, capable of supplying parts to the automotive industry.

A better idea might be to let the plants be setup, say for 5 years with a lower duty and lesser restrictions, and then increase the duty for imported parts to encourage the engagement of local suppliers...

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In what seemed to a paradigm shift in the import policy of the government, Deputy Minister of Finance, Dr. Sarath Amunugama, yesterday said that plans were afoot to cut down vehicle imports by 30 per cent in the near future and to assemble them locally. force people to buy crap from M*cr@ which "poses" to be "assembling" a wide range of cars and is protected by not allowing anyone else to "assemble" in the same way for reasons that cannot be mentioned here in public.

There fixed that. ;)

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I think I'm going to covert to a classic car lover and forever run the golden oldies. This seems to be better than not having a choice on newer vehicles to buy as soon only Micro will be affordable.

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There fixed that. ;)

Once upon a time, Micro Cars were not even registered by the RMV for the simple reason that the owner did not pay his dues to the then powers to be. how times and fortunes changed.

I pity the fools who will fall in to this locally assembled traps and sink their hard earned money and lose more than that money.

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I pity the fools who will fall in to this locally assembled traps and sink their hard earned money and lose more than that money.

There are lot of 'desha premiyo' who'll dig this shit up like no tomorrow...

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