Micro CEO laments:

Locally assembled vehicle market stagnating

The Rajapaksa regime did not have an influence on the sale of locally assembled vehicles, which has been low right throughout due to high vehicle imports, Micro Holdings (Pvt) Ltd. Chairman and CEO Dr. Lawrence Perera told a gathering at the company’s 20th anniversary celebrations in Polgahawela, last week.

Scoffing at accusations that he had close links with the former regime and benefited from it, Dr. Perera said that vehicle sales dropped from around 14 percent to around nine percent during the former regime and added that sales had not improved even during the tenure of this Government.

“You cannot say that my affiliation with the Rajapaksa regime helped boost sales when the numbers have been low. Inconsistency of policies and lack of a stable government are a major hindrance to increase sales”, Dr. Perera said.

He said as imported vehicles hold 95 percent of the market the local industry cannot survive.

However, Micro cars have carved a niche in the minds of customers with value addition and safety measures.

Regarding exports, he said currently the company exports vehicles to Bangladesh, Nepal and Malaysia.

“We are keen on exporting to other countries as well but when a buyer looks at our market share in the country they get discouraged. I would like to export to South Africa but as the current market share is low they will not want our vehicles,” Dr. Perera said.

“I had discussions with President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe regarding the automobile industry and promoting local industries.

When the Prime Minister asked me to increase exports I said how can we do that when the country imports a large number of vehicles undermining a local company that has been in existence for 20 years contributing to employment generation and the economy,” Dr. Perera said.

Bureaucrats of this and the former government did not understand the value of a local company and did not convey to policy makers the importance of recognising and promoting a fully home-grown entity. The then government did not support Upali Wijewardene who set up the first vehicle manufacturing plant in Sri Lanka.

“We have a lot to learn from South Korea which has excelled in the automobile, electronics and mobile phone industries,” Dr. Perera said.

He said that value addition to vehicles produced at Micro Holdings was around 35 percent and the company has maintained standards as a reliable automobile entity for the past two decades.

“Although some critics say that there isn’t a value-addition of 30 percent it is not true. You must see for yourself and believe. Seeing is believing. SsangYong Motor Company, Korea’s first SUV manufacturer has recognised us as the official assembler of SsangYong in Sri Lanka which amply testifies to the standard of the company,” he said.

Dr. Perera said that the company not only takes pride as a local company but also as one which employs around 850 workers empowering youth with training in modern technology in the automobile and engineering fields.

Ambassador to South Korea Won-sam Chang said that the automobile industry in Korea helped develop the economy of the country contributing around 10 percent to exports and 70 percent of the employment opportunities in the country.

“Sri Lanka can learn from South Korea in developing economic strategies by investing more on cutting-edge technology and thereby become a successful country. Sri Lanka can do what South Korea did through to its hard-working and skilled workforce,” Chang said. - LF