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Motor traders’ body flashes red light over move to assemble vehicles with used parts
View(s):The Ceylon Motor Traders’ Association (CMTA) has protested to the Government against a proposed Cabinet memorandum to allow the assembly of vehicles with used parts by one company, saying it is a violation of multiple local and international laws.
The CMTA, which states it is a Ceylon Chamber-affiliated body that has represented manufacturer-authorised franchise holders for the past 100 years, has raised safety concerns related to the project. It points to a lack of roadworthiness in vehicles assembled in this manner and an adverse impact on the environment through air pollution from increased vehicles emissions.
“Permitting vehicles to be assembled with used parts is a clear violation of several laws and regulations of the country and international treaty obligations including the Motor Traffic Act (MTA), the Intellectual Property Act, the Consumer Affairs Authority Act, etc,” the letter this week to W M D J Fernando, Cabinet Secretary, said. It was copied to other relevant ministers and officials.
The economic impact of such a venture on the automobile industry in Sri Lanka “is far greater and so much more than meets the eye”, the association stressed. It would disrupt the business of legitimate vehicle importers that have made significant investments into sales and after-sales infrastructures as well as employment, training and development of over 32,000 direct and indirect staff.
It would also disrupt the business of companies that have invested in legitimate new vehicle assembly operations in accordance with prevailing laws and regulations. “Lack of roadworthiness would not only endanger lives and property but would result in damage to the reputation of well-known global brands whose parts are being used to assemble such vehicles,” CMTA warns.
“This will cause global automobile manufacturers to lose faith in the market and in good governance of the country, resulting in the country potentially being blacklisted by the original brand owners,” it states.
The CMTA states that no person can knowingly use a vehicle assembled other than with branded new parts/without permission of manufacturer. It also mandates that the Commissioner General of the Department of Motor Traffic cannot register a vehicle unless assembled with brand new parts/without permission of manufacturer. It allows the Commissioner General to cancel the registration of a vehicle that is not assembled with brand new parts. And it states that no person can assemble a vehicle unless with brand new parts and with written permission of the manufacturer.