Motor vehicle sales drop by 75%, traders struggle to survive
View(s):Sri Lanka’s motor traders are struggling to survive as their sales have dropped by 75 per cent due to high taxes imposed on vehicle 
imports, said Ceylon Motor Traders Association (CMTA) Chairman and Executive Director, Sathosa Motors Ltd, Tilak Gunasekera.
He disclosed that there was a sharp drop in the import of motor vehicles this year effecting the revenue growth and business expansion plans of motor vehicle franchise holders in the island.
According to the Motor Traffic Department data, vehicle registration had slumped sharply during the past 11 months.
Registration of motor cars, lorries, three wheelers and motor bicycles declined 32.3 per cent to 300,522 units during the past 11 months from 444,067 in the corresponding period last year.
Registration of these vehicles declined 57.2 per cent to 22,331 units in November this year from 52,504 in the same month in 2011.
The depreciation of the rupee, high cost of living, increasing interest rates on leasing and financing and credit ceiling for loans affected the growth of the motor vehicle market this year, Mr. Gunasekera said adding that all these factors have sent vehicle prices sky rocketing.
He noted that the association has made representations to The Finance Ministry urging the authorities to maintain a consistent tax system for the motor industry rather than to revise it in an ad-hock manner.
Motor car registrations have dropped to 1,573 in November this year from 5,198 in the same month last year and the three –wheelers to 7,630 in November this year from 23,804 units in November 2011 while the motor bicycle category has declined to 12,633 units from 22,062 units in the same month last year.
The registrations of lorries also dropped to 495 last month from 1140 in November 2011.
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