Last Updated : 2019-07-21 16:55:00

Automobile market collapses by over 40%

26 January 2017 06:55 am - 19     - {{hitsCtrl.values.hits}}


Automobile trade in Sri Lanka is facing extreme difficulties due to the recent regulations introduced by the government, the former chairman of the Ceylon Motor Traders Association (CMTA) Gihan Pilapitiya said yesterday.

“The overall showroom traffic had dropped more than 40 per cent and even most of these customers who walk in, go away without purchasing due to high pricing. In some cases certain vehicle showrooms have no customer visits at all in a day” he said.

“Last week’s leasing regulations announced by the Government for vehicles based on loan-to-value ratio, as proposed in the 2017 budget is another blow to sustainability of the trade.

“If leasing companies are ready to provide facilities and the buyer is agreeable with the settlement, there is no need for the Government intervention, to artificially regulate the trade” .

In addition to this it is also important that the decision makers figure out the cost of maintaining old vehicles and their environmental impact as well before policies are formulated. (Chaturanga Pradeep)

  Comments - 19

  • Nana Thursday, 26 January 2017 01:29 PM

    What else not collapsed in sri lanka except going up in global high ranking in corruption index? What a shame?

    ??? Friday, 27 January 2017 01:58 AM

    A 40% drop in showroom traffic means the automobile market COLLAPSED 40%? Go home DM, you're drunk!

    Madiya Thursday, 26 January 2017 07:35 AM

    Good news to the ordinary citizens of Sri Lanka and the environment. Now is the time for the government to improve the public transport, specially the SLTB and the railway. Build light railway systems in the city and reduce the pollution and traffic on the roads.

    Indiran Thursday, 26 January 2017 02:53 PM

    Leasing companiess should mobilise their resources towards productive economic sectors, not to make innocent insolvent or bankrupt.

    Eds Thursday, 26 January 2017 03:00 PM

    He he he ..... feel sorry for the people who were fooled by "a car for everyone" !

    concern Thursday, 26 January 2017 08:03 AM

    Less vehicles on the streets less accidents.

    d Thursday, 26 January 2017 08:31 AM

    well obviously. when a vehicle costs 2.5million in Japan and cost 8.5 million when it arrives here who is stupid enough to buy then via DM Android App

    Reality Friday, 27 January 2017 07:27 AM

    No vehicles on the streets no accidents.

    sene Thursday, 26 January 2017 08:58 AM

    Not only automobile all the Markets are collapsing Agro based Small-Medium enterprises already collapsed.The rest are struggling and it is only a matter of time.

    daily boru Thursday, 26 January 2017 09:07 AM

    Don't tell lies. If you travel from Borella to Kaduwela you will find new car sales almost every 50 meters. Most of these place have come to existence since the last budget. Selling vehicles is the best loved business in Sri Lanka.

    John Prescott Thursday, 26 January 2017 05:55 PM

    Heard of a VW plant in Sri Lanka?

    muba Friday, 27 January 2017 09:02 AM

    give 2 & get 1 rate for cars is too high with compared to other countries via DM Android App

    Ali Rishab Thursday, 26 January 2017 09:33 AM

    The government decision on this matter right even though the leasing rate should be increased by another atleast 10%. Because at present most the vehicle run @ road on credit basis. Financially this situation not good for the future. At the same time with limited road space it is not possible to permit buy all interested people with less financial ability.

    Rodny Thursday, 26 January 2017 07:29 PM

    Good.. Too many vehicles on the road

    Sunil Thursday, 26 January 2017 07:30 PM

    Whatever the finance minister touches turns to rubbish.

    Jey Thursday, 26 January 2017 07:38 PM

    Hope everybody commented on this news dont have a Private vehicle & using public transport daily. If its not then better not to comment against this.... via DM Android App

    Jaya Thursday, 26 January 2017 07:53 PM

    Government allowed to collapse once they all purchased super luxury vehicles. God bless the rest

    mathu123 Thursday, 26 January 2017 07:55 PM

    nobody said a car everyone every year. should have tried to seize the opportunity when mithree started office via DM Android App

    Shiraz Thursday, 26 January 2017 08:05 PM

    The only solution for you is to sell the vehicle on installment basis by the motor company not involving the leasing companies.

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