Cars to people ratio falling in line with developed countries:

Vehicle sales increase

Sanjeevi Jayasuriya

There is a positive trend in vehicle purchases at present where the recent duty reduction on vehicle imports has provided the growth momentum. There is an increased number of inquiries at present compared to the recent past, Ceylon Motor Traders Association Chairperson Zeeniya Rasheed told Daily News Business.

The increase in numbers will be visible only commencing this month as well as in October as the brand new vehicles ordered in June/July will start coming in only during that period. This is due to there being generally a lead time of about three to four months for delivery, she said.

The most demanded vehicles are small vehicles, that is less than 1000cc. The demand for small vehicles has increased significantly. The numbers have increased from an average 150 vehicles to approximately 400 vehicles and signs are that it will increase further. The most demanded used vehicles are those of 1500cc.

It is understood that Government revenue in the form of taxes has increased by 300 percent. There is an overall demand in all sectors such as agriculture, tourism and fisheries. The most popular purchasing method of motor vehicles is leasing as the country has efficient service providers for speedy transactions.

The motor vehicle industry which suffered badly during the last few years is now on the road to recovery. The increase in the demand and sales will continue with the rapid development projects that are in progress and the conducive economic environment at present. A motor car cannot be considered a “luxury” item in today’s context and it has become an independent mode of transport. It has also become a key business tool.

Therefore, affordability is vital and numbers are anticipated to increase further, she said.

There are indications in the future that the cars : people ratio will fall in line with ratios in most developing countries. The country will have an active motor vehicle industry with the importation of brand new, re-conditioned and used vehicles.