Vehicle prices may go up by 5 percent due to Yen rise: VIASL

Imported Japanese vehicle prices would increase due to the Japanese Yen and the US Dollar appreciating against the Rupee - Vehicle Importers Association of Sri Lanka (VIASL) said.

Speaking to the Daily Mirror, VIASL President Ranjan Peiris yesterday said the exchange rate of Japanese Yen had increased from 1.62 to 1.70 in comparison to the Sri Lankan Rupee.

As a result, the price of vehicles imported from Japan would be increased in the range of Rs. 50,000 to 500,000, he said.

He said the prices of Japanese vehicles such as motor cars, jeeps and vans would be increased.

He said that it was advisable to buy vehicles from the existing stocks before the new stocks come in.

"The fixed deposit rates of banks and leasing rates had been decreased within the rate between 2%-4%," he said.

Therefore, a trend had been created among the depositors to withdraw money and to buy small cars for taxi services on a lease as the rates are low. For an individual planning to buy a car, this is the best time since leasing rates have decreased and it’s the best it has been in the last 5 years. As fixed deposit rates are down to 9%-10% which is below the rate of inflation the customer is at a loss of cash if it’s being invested in fixed deposits. Hence this new trend of investing them in cars employed in the taxi industry is justified, he further stated.

As the Vehicle Importers Association, we have decided to sell the old stocks at the old price,” Mr Peiris added.

Accordingly, the prices of vehicles that would be increased after the next shipment are as follows:

Suzuki Alto Japan by Rs.50,000 - Suzuki Wagon R, Suzuki Spacia, Toyota Vitz by Rs.110,000 - Toyota Passo by Rs. 100,000 - Toyota Axio by 200,000 - Toyota Premio by Rs.200,000 - Honda Vezel by Rs.200,000 - Honda CR-V by Rs.300,000 - Toyota C-HR by 220,000 and Toyota Land Cruiser Prado by Rs.500,000. (Chaturanga Samarawickrama)