AMW to export tyres, secure vehicle agencies overseas
Associated Motorways (Pvt) Ltd (AMW) is venturing into export markets with its rubber tyres, while considering vehicle dealerships abroad with principals, officials said.
“We’re already in discussion with our principals, trying to secure rights
(agencies) with their principals to go to other countries,” Samantha Rajapaksa, Managing Director AMW told the Business Times. AMW has the agencies for Nissan, Suzuki, Maruti and Yamaha motor brands in Sri Lanka while Dubai-based Al-Futtaim, owner of AMW has agencies for Toyota and Lexus and also has businesses in real estate, retailing and construction.
Samantha Rajapaksa
Mr. Rajapaksa said setting up car dealerships in the region is in line with Al-Futtaim’s strategy of being a key player in the automotive sector. He said the company has already forged a joint venture with a US firm to manufacture solid rubber tyres. “On the manufacturing side we want to have a focus on the export markets,” he added.
Mr. Rajapaksa noted that since April this year, vehicle sales have dropped by some 50 per cent across the industry owing to the increases in vehicle duty and interest rates along with the currency depreciation. He added that the Sri Lankan economy had to have that correction, but it was too sudden. “It shouldn’t have been done purely targeting one industry – the automobile sector,” he reiterated. He noted that this has resulted in lower vehicle segments also being unaffordable to the masses.
“Three wheelers and motor cycles are beyond the reach of customers, let alone cars, etc. Purchasing a three wheeler for someone at the grassroots level is the start of entrepreneurship. Now it’s more than Rs. 500,000 which isn’t affordable to them at all.”
He said the crisis situation has impacted AMW’s growth plans tremendously. “About Rs. 6 billion worth of investment we had planned for is on hold,” he said, noting that currently there’s a freeze on hiring at AMW. “We’re trying to see how we can improve on the efficiencies from within.” A lot of initiatives have been taken to increase the productivity of the staff and their skill levels through training and employee empowerment programmes, he added.
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