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SL to see an increase in automobile assembly plants

11 May 2024 12:43 am - 16     - {{hitsCtrl.values.hits}}


  • JAC and FOTON are among those gearing up to start assembling in Sri Lanka
  •  Industry Ministry expects to have around 30 assemblers operating by year end

Sri Lanka will see the addition of automobile assembly plants, as four are set to begin operations within the next three months and another 11 have been registered by the Industries Ministry. 

A Special Cabinet-appointed Committee oversees the Standard Operating Procedure (SOP) and its governance. 

JAC and FOTON are among those gearing up to start assembling in Sri Lanka. By end-2024, the ministry expects to have around 30 entities operating in the local automobile assembly industry.

Accordingly, the local automobile assembly industry is experiencing a significant growth and development with the involvement of the world-renowned brands, including Hyundai, Proton, BAIC, DFSK, Wuling, Mahindra, TATA, Bajaj, TVS, JMC and Lanka Ashok Leyland, emphasising the favourable environment for investment. 

The approval to assemble a wide range of vehicles, including SUVs, cars, two-wheelers, double-cabs, trucks and buses, has paved the way for a diversified automobile assembly industry in the country, catering to various consumer needs. Nwow electric bikes, KD Rize, Dyno and Senaro are also involved in the local assembly 
of motorcycles. 

Following the SOP launched in 2021, there are over 15 automobile and motorcycle assembly plants currently operating in Sri Lanka. 

According to Industries Ministry Sector Advisory Committee for Automobile Chairman Dimantha Jayawardena, the Sri Lankan automotive component manufacturers went through one of the toughest business cycles from 2020. 

“The Sri Lanka government is promoting automobile component manufacturing as a trust sector for growth and has a plan to grow exports from US $ 200 million to US $ 1 billion,” he said in a statement.

The temporary suspension on motor vehicle imports has increased the market for locally assembled vehicles. The planned establishment of an R&D and testing facility by the Industrial Development Board indicates a commitment to innovation and quality assurance within the industry, to further enhance Sri Lanka’s competitiveness in the global automotive market. 

The Automobile Industry Council, initiated by the government, is also laying out the curriculum for the required technical and vocational education for automobile assembly.

The Industries Ministry is sponsoring 50 percent of the cost of the IATF certification for local automotive component manufacturers, which is a mandatory requirement when manufacturing components for international brands. Sri Lankan companies with the IATF certification will have greater acceptance and trust from global brands for automobile assembly. 

According to Jayawardena, global brands are also keen to invest in Sri Lanka because the country lies astride major supply chains linking trade between east and west. 

“More and more Sri Lankan consumers are also showing a preference for locally assembled vehicles. This is a great boost to the industry as it further creates engineering and technical-related job,” he said.

  Comments - 16

  • Be Fair Saturday, 11 May 2024 09:17 AM

    22m People, Not much of buying Power, 30 Assembly Plants? Who is fooling whom here? Are they actually Assembly Plants

    Assembly Point for the Region Saturday, 11 May 2024 11:12 AM

    SL can be the assembly point for the region - Bangladesh, Pakistan, Afghanistan, Maldives and some Middle Eastern countries too. With an educated population and AI technology, it will be easier to find workers for this complex industry.

    Akila Sunday, 12 May 2024 04:51 PM

    Don't be fooled. Are those countries cannot be catered by India and China?

    Rajitha Saturday, 11 May 2024 09:17 AM

    Keep the import ban on vehicles like what India did many years ago while their local industry grew to what it is now, and channel the demand for new vehicles to locally assembles vehicles only. That will help consolidate the fledgling industry in Sri Lanka and cut back on import wastage. Leadership needs to be given by the government servants and politicians. Duty free permits should be abolished, while vehicle import ban continued for at least another 5 to 6 years.

    Jude Saturday, 11 May 2024 10:29 AM

    Much emphasis should be given to manufacturing of Auto parts and components!!

    Nimal Saturday, 11 May 2024 10:43 AM

    Volkswagen is long overdue and so is the tyre manufacturer.

    Abeyrohan Saturday, 11 May 2024 10:45 AM

    This is the kind of industries that Sri Lanka should develop. Upali Motors and United Motors started this in way back late sixties, but it was killed by the ULF government's wrong policies. I am sure the industry can find export markets as well in Asian and African regions.

    Mahila Sunday, 12 May 2024 01:18 AM

    Abeyrohan, Beg to disagree, it was not the ULF government which killed it, BUT the later 4/5th Majority UNP Government, with FREE imports of NEW and USED vehicles (

    Hon. Sarneris Saturday, 11 May 2024 01:04 PM

    best thing for a country like Lanka is to allow the capable people import used vehicles on condition that they are fully restored prior to being sold. This is save much needed foreign currency, and bring up a whole generation of tech savvy people

    Opportunities galore Saturday, 11 May 2024 05:24 PM

    New thinking and a desire to rescue the nation from bankruptcy is the key word for this development. This is in line of Ranil's thinking. Youth can be used, Foreign exchange can be earned, our low Rupee can attract foreign markets, Idle land can be put to good use.

    pieter van Gilst Saturday, 11 May 2024 08:19 PM

    forget the moksha invalid car not.

    Shan Saturday, 11 May 2024 09:50 PM

    Sri lanka can assemble and distribute vehicles into India, China, Bangladesh, Pakistan. This should be a very good initiative if done properly.

    All f*king janatha niyojithas must contend with these Sunday, 12 May 2024 05:49 AM

    without importing.

    DOT Sunday, 12 May 2024 07:12 AM

    What is the target market ? Exports ?

    Government should put in vehicle orders for use in Government Ministries Sunday, 12 May 2024 10:25 AM

    Allow vehicle imports and local assembly will fizzle out. Until then government should put in vehicle orders for use in Government Ministries

    GERIATRIC Sunday, 12 May 2024 01:53 PM

    Try to get Brands like Jaguar Land Rover, Mercedes, Porsche to come in with assembly plants in Sri Lanka.

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