Lalin Fernandopullai
Diesel and Motor Engineering PLC (DIMO) recorded a 500 percent growth in sales of all categories of vehicles following the reduction in import duty, said Chairman and CEO, DIMO, Ranjith Pandithage.
He was speaking at a ceremony to partner with Sri Lanka Insurance Corporation (SLIC) an offer an exclusive motor insurance solution to DIMO vehicle owners.
He said there has been a marked increase in sales of all categories of vehicles due to the duty concession and added that sales would hit a record growth by the end of this year. “The luxury vehicle market has not shown a significant growth as the other category of vehicles. Sale of Mercedes-Benz has been around 300-400 a year”, Pandithage said.
Sri Lanka sells less than 1000 units of luxury vehicles a year while over 4000 units of the luxury category is sold in Singapore. Pandithage said the demand for DIMO Batta has been high and sales have been over 1000 units during the past months.
DIMO faced a tough time last year due to the high import duty structure for vehicles. Sales which were badly affected during the first two quarters picked up in the last quarter.
Pandithage said DIMO has set up a branch in Jaffna which has been a traditional market of the company.DIMO has been in the vehicle market for the past 70 years and has partnered with world’s leading brands.
DIMO has planned to expand its reach by setting up more branches in the country.The company currently has around 15 branches through out the country. Managing Director, SLIC, Mohan De Alwis said insurance in the motor segment has recorded a significant growth in the recent months due to the concessions given to import vehicles.
“SLIC expects a 10-15 percent growth in insurance in the motor segment by the end of this year”, he said.
Growth in Sri Lanka’s vehicle market had been stagnant in past years due to the staggering import duty which had been higher compared to many countries. Vehicle dealers faced most difficult times due to the drastic reduction in sales.
De Alwis said the strategic partnership will benefit all SLIC motor policy holders with DIMO with the assurance of safety and quality standards.