Increase in demand for vehicles -companies short of stock

by Lalin FERNANDOPULLE

The leasing industry, a major contributor to the economy has received a shot in the arm following the recent reduction in vehicle import duty.

The import duty on vehicles was slashed by around 50 percent to facilitate more imports and for developing the transport sector in the country. Revenue to the Government coffers is expected to increase with the import of more vehicles.

Deputy Chairman and Joint Managing Director, Alliance Finance Co. PLC, Romani De Silva said vehicle leasing volumes rose sharply during the past three months due to the reduction in the vehicle import tax.

“The demand for registered and un-registered vehicles has increased substantially during the past two months”, he said. Vehicle sales dropped drastically during the past few years due to the high import duty.

Vehicle merchants said their sales declined by around 50 percent as the demand for vehicles slumped drastically.

Chairperson, Ceylon Motor Trading Association, Zeeniya Rasheed said the demand for small cars has increased from around 150 units to over 400 units during the past two months.

She said the demand for small vehicles would increase to around 600 units in the months to come. The demand for other categories of vehicles has increased and companies are short of stocks. Vehicles are expected in the market around November.