Jump to content
  • Welcome to AutoLanka

    :action-smiley-028: We found you speeding on AutoLanka Forums without any registration! If you want the best experience, please sign in. Safe driving! 

Skyonline

Vehicle importers fear collapse of industry following ban

Recommended Posts

The Ceylon Motor Traders Association (CMTA) urged the Government to provide a clear direction on the period of the vehicle import suspension and emphasized the need to regulate automotive imports to legitimate importers that have been vetted by the Government.

“First and foremost, we appreciate the Government’s leadership and initiatives taken to control the spread of COVID-19 in Sri Lanka. Our situation is far better than most countries around the world thanks to the Government’s actions. However, the vehicle import ban has adversely impacted thousands of Sri Lankans and it is the responsibility of the Government to communicate clearly to us as to when it will be lifted so that businesses and citizens can plan ahead. In addition to the lifting of the ban, the other key issue is for the Government to introduce proper regulations to take the industry to the next level.”

He said that the CMTA plays a significant role in the transportation sector by acting as the bridge between Sri Lanka and automotive manufacturers worldwide.

CMTA consists of all the franchise holders of global automotive brands that import and market cars, commercial vehicles, 2-wheelers and 3-wheelers, as well as tyres and lubricants, with substantial investments into island-wide infrastructure to providing direct & indirect employment to over 20,000 individuals across the island.

The association reiterated that the complete suspension of all vehicle imports has caused great hardship to the entire industry.

It requested the Government to provide a firm timeline on when it plans to recommence imports.

The association stated that soon after the vehicle import suspension, the organisation submitted letters to the relevant authorities requesting for clear communication as to when the import restrictions are expected to be lifted in order to make plans to ensure the continuity of the industry.

“Unfortunately, there has been no proper response to these requests leaving the industry uncertain of its future,” CMTA said.

https://colombogazette.com/2020/07/30/vehicle-importers-fear-collapse-of-industry-following-ban-2/

 

 
  • Haha 2

Share this post


Link to post
Share on other sites

What Auto "Industry" does Sri lanka have? Importing parts and assembled vehicles with zero value addition in Sri lanka, is just another part of the import industry, which drains money out of the country.

  • Like 5

Share this post


Link to post
Share on other sites
15 minutes ago, ajm said:

What Auto "Industry" does Sri lanka have? Importing parts and assembled vehicles with zero value addition in Sri lanka, is just another part of the import industry, which drains money out of the country.

true, no industry there. Just bring down, market with many fairy tales and sell. :D

  • Haha 2

Share this post


Link to post
Share on other sites

Well, they had so many decades of selling all sorts of illegal products.Karma is in Kohuwala these days.

The list of jil mart done by these crooks can be written endlessly, but that’s just a waste of my time.

  • Like 4
  • Haha 3

Share this post


Link to post
Share on other sites

This is rich. The motor vehicle import sector was regulated (strict permit based imports until the mid 80s) and it was these very same businesses (the large car sales) that pretty much abused the system and then fought for the system to be opened up. Then once a whole host of private/home-grown importers grew then they wanted better regulation. Several times the government tried to regulate imports again..they fought with it because what ever regulations were put for small time importers also effected them.

Having said that...we do have to accept the fact that there are a whole lot of support industries (detailing, vehicle transportation and even vehicle re-conditioners..yes the buggers who fix he crashed junk that was imported) that employ  large number of people are getting hit. But I do not think it is the legitimate support industries that are complaining about this but the mudallalis who import the junk. With proper planing and vision I am sure the support industries (which to be honest are the only auto industries in SL) would be able to service other areas of the auto sector in the country.

Share this post


Link to post
Share on other sites

There were some articles (probably last year) that there are enough unregistered vehicles stored in car dealerships in Sri Lanka for the next 5 years. (which means, available stocks = last 5 year total car registrations). If its true, then why government bother about them. Let them sell those first.....

Otherwise, this will also be like a pyramid case. 

Who will pay for the investment (interests for the investment of that stock), space, etc. ? Let them down sized will reduce the price of vehicles in the market. Isn't it?

 

Share this post


Link to post
Share on other sites

The moment the new lot ministers are elected there will most likely be the re-introduction of duty free permits which will give the industry a boost. We've seen this time and time again. No worries about outflows then. 

Share this post


Link to post
Share on other sites
20 minutes ago, RWD said:

The moment the new lot ministers are elected there will most likely be the re-introduction of duty free permits which will give the industry a boost. We've seen this time and time again. No worries about outflows then. 

just wait for the new parliament to be formed, if not for most importers, Toyota is going to be flooded with LandCruiser V8 orders to the brim

Share this post


Link to post
Share on other sites
2 hours ago, iRage said:

This is rich. The motor vehicle import sector was regulated (strict permit based imports until the mid 80s) and it was these very same businesses (the large car sales) that pretty much abused the system and then fought for the system to be opened up. Then once a whole host of private/home-grown importers grew then they wanted better regulation. Several times the government tried to regulate imports again..they fought with it because what ever regulations were put for small time importers also effected them.

Having said that...we do have to accept the fact that there are a whole lot of support industries (detailing, vehicle transportation and even vehicle re-conditioners..yes the buggers who fix he crashed junk that was imported) that employ  large number of people are getting hit. But I do not think it is the legitimate support industries that are complaining about this but the mudallalis who import the junk. With proper planing and vision I am sure the support industries (which to be honest are the only auto industries in SL) would be able to service other areas of the auto sector in the country.

Ok just to inform you guys the CMTA is the representing body of all the authorised agents in Sri Lanka. With import restrictions hampering the the service and parts all agents are having issues on paying salaries. According to government ruling they cant let go of staff as well unless its voluntary.

What the industry is asking for is for the government to give a proper plan on what they are going to do in the future if not the principals will just laugh at us.

Some have looked at other avenues to come out of this situation.

  • Haha 1

Share this post


Link to post
Share on other sites
2 hours ago, Gummybr said:

Ok just to inform you guys the CMTA is the representing body of all the authorised agents in Sri Lanka. With import restrictions hampering the the service and parts all agents are having issues on paying salaries. According to government ruling they cant let go of staff as well unless its voluntary.

What the industry is asking for is for the government to give a proper plan on what they are going to do in the future if not the principals will just laugh at us.

Some have looked at other avenues to come out of this situation.

So this is NOT the car sale guys ?

  • Haha 1

Share this post


Link to post
Share on other sites
1 hour ago, iRage said:

So this is NOT the car sale guys ?

Nope CMTA are the agents, VIASL comprises of all the other car sales.

Share this post


Link to post
Share on other sites
Posted (edited)
9 hours ago, gayanath said:

There were some articles (probably last year) that there are enough unregistered vehicles stored in car dealerships in Sri Lanka for the next 5 years. (which means, available stocks = last 5 year total car registrations). 

 

In that case at least the VIASL will make a very decent profit as the average price of vehicles have gone up...

Edited by Kavvz

Share this post


Link to post
Share on other sites
8 hours ago, iRage said:

So this is NOT the car sale guys ?

Well then....I hope they succeed...they have been pretty much on the brink of bankruptcy for like ever. The low market penetration they have is also the source of their parts and labor being excessively priced (SL agents have the largest markup I have ever come across even after removing taxes and transport).

Down with the VIASL ! Those guys can cut down. (VIASL at first glance looks like the Vietnamese Aviation Authority....which looks like Viagra....see..VIAGRA....VIASL....)

  • Haha 2

Share this post


Link to post
Share on other sites
6 hours ago, Kavvz said:

In that case at least the VIASL will make a very decent profit as the average price of vehicles have gone up...

And obviously... they have to cover a large profit margin from the customer to pay bank interest, land rent, etc. So, as I said above, allowing them to reduce inventory (and downsize) will ultimately reduce unnecessary costs and labor for this unproductive business (Because as ajm rightly said this is a zero value added business). We must allow workers in that field to move to other productive industries (construction, etc.) and this big mudalalis to invest for value adding businesses. 

Share this post


Link to post
Share on other sites
16 hours ago, gayanath said:

There were some articles (probably last year) that there are enough unregistered vehicles stored in car dealerships in Sri Lanka for the next 5 years. (which means, available stocks = last 5 year total car registrations). 

Found it... 21st October 2018 (Two years before) 

https://srilankamirror.com/news/11075-vehicles-adequate-for-five-yrs-imported

Quote ...

Motor vehicles adequate for the next five years had already been imported when an importation restriction was imposed, latest reports by the Department of Motor Vehicles, Central Bank and the Finance Ministry show.

According to one of the reports compiled by a team of economists, the annual requirement of motor vehicles is 45,000.

But, the country has imported 234,000 vehicles.

They include 24,276 dual vehicles, which has an annual requirement of 4,000 only.

The report also says 168,419 three wheelers have been imported, whereas the requirement is 20,000 a year.

Although the country needs 300,000 motor cycles a year, 943,920 motor cycles have been imported.

The report adds that these vehicle importations could lead to a severe foreign exchange crisis. 

... unquote. 

  • Like 1
  • Sad 1

Share this post


Link to post
Share on other sites
22 minutes ago, gayanath said:

Found it... 21st October 2018 (Two years before) 

https://srilankamirror.com/news/11075-vehicles-adequate-for-five-yrs-imported

Quote ...

Motor vehicles adequate for the next five years had already been imported when an importation restriction was imposed, latest reports by the Department of Motor Vehicles, Central Bank and the Finance Ministry show.

According to one of the reports compiled by a team of economists, the annual requirement of motor vehicles is 45,000.

But, the country has imported 234,000 vehicles.

They include 24,276 dual vehicles, which has an annual requirement of 4,000 only.

The report also says 168,419 three wheelers have been imported, whereas the requirement is 20,000 a year.

Although the country needs 300,000 motor cycles a year, 943,920 motor cycles have been imported.

The report adds that these vehicle importations could lead to a severe foreign exchange crisis. 

... unquote. 

This is evident when travel through Katugastota Road.....There are a plenty of imported vehicles lying in vehicle sales. The best decision would be to continue this vehicle importation restriction and if really needs the importation could be allowed for authorized dealers (even a limited number) with a strict control on the profit margins they are getting.....

Share this post


Link to post
Share on other sites
Posted (edited)
12 hours ago, Gummybr said:

Nope CMTA are the agents, VIASL comprises of all the other car sales.

Thanks for clearing that up. 

4 hours ago, iRage said:

Well then....I hope they succeed...they have been pretty much on the brink of bankruptcy for like ever. The low market penetration they have is also the source of their parts and labor being excessively priced (SL agents have the largest markup I have ever come across even after removing taxes and transport).

Down with the VIASL ! Those guys can cut down. (VIASL at first glance looks like the Vietnamese Aviation Authority....which looks like Viagra....see..VIAGRA....VIASL....)

Yeah I mean for a long time now the agents have been missing out on the trends :  During the hybrid craze most of the hybrids were grey imports. During the kei car craze it was mostly grey until A_W decided to step in and then  when the Small-engined turbos came same story - and then there's folks like St_f_ord who decided to fund a little side business just to bring down the 1L Civics :D  As for the Kohuwala bunch - they've been living on bullshit for ages and their own brand of exaggerated marketing I remember when the Agent was bringing down the MG ZS they were bringing down from Australia and marketing them for the same price /higher stating that the product from the agents was inferior.  Their marketing strategy clearly works as Sri Lankans seem to prefer the little side-snippets of car-information coming from the average Jayantha in his white shirt with a floral design  than of course the million-rupee marketing campaigns of the agents :D 

Edited by matroska
  • Haha 1

Share this post


Link to post
Share on other sites
21 minutes ago, matroska said:

Their marketing strategy clearly works as Sri Lankans seem to prefer the little side-snippets of car-information coming from the average Jayantha in his white shirt with a floral design  than of course the million-rupee marketing campaigns of the agents :D 

No kidding.. those Jayanthas are marketing gurus, better than Cotler maybe :D The ability to sell a bare bones Vitz at 6 million LKR and a heavily outdated Premio 260 at 10 million LKR is just woow :P I mean who in the right mind would make such a purchase given so much better alternatives at those price points.. (maybe... maybe Toyota is sponsoring the floral shirt guys?? :P )

  • Thanks 1

Share this post


Link to post
Share on other sites
7 hours ago, iRage said:

Well then....I hope they succeed...they have been pretty much on the brink of bankruptcy for like ever. The low market penetration they have is also the source of their parts and labor being excessively priced (SL agents have the largest markup I have ever come across even after removing taxes and transport).

Down with the VIASL ! Those guys can cut down. (VIASL at first glance looks like the Vietnamese Aviation Authority....which looks like Viagra....see..VIAGRA....VIASL....)

Careful @iRage your age is showing 🤪🤣

  • Haha 2

Share this post


Link to post
Share on other sites
3 hours ago, matroska said:

Yeah I mean for a long time now the agents have been missing out on the trends :  During the hybrid craze most of the hybrids were grey imports. During the kei car craze it was mostly grey until A_W decided to step in and then  when the Small-engined turbos came same story

Well it's not easy to officially bring any vehicle to SL just like the grey importers.  Country specific compatibility studies are required by the manufacturer to confirm that the new technologies will function properly in SL conditions while fulfilling other legal and safety requirements. Our market is very small and I doubt if the manufacturer is willing to bother.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.




×
×
  • Create New...