Lanka importing fewer used cars

Exports of used Japanese automobiles to Sri Lanka could fall by roughly half in unit terms because of import duty hikes implemented since October, the head of the auto Importers' Association told 'The Nikkei.'

Sri Lanka was the biggest importer of used Japanese cars in 2015, ranking sixth overall in unit terms. But it took in just 1,066 used Japanese vehicles this May -- down 70% from a year earlier. Prices of used midsize vehicles sank 14% to 1.45 million yen ($14,128).

Midsize hybrids have been taking the brunt of the stiffer tariffs. Duties roughly doubled in May for Toyota Motor's Prius and Nissan Motor's X-Trail Hybrid. In the face of this, imports of used BMWs and Porsches are increasing, said Sampath Merenchige, president of the Vehicle Importers Association of Lanka. Meanwhile, import duties on Suzuki Motor's WagonR have eased, and orders for small vehicles have been coming in, Merenchige said.

(Nikkei - Asian Review)