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Automobile market collapses by over 40%


Automobile trade in Sri Lanka is facing extreme difficulties due to the recent regulations introduced by the government, the former chairman of the Ceylon Motor Traders Association (CMTA) Gihan Pilapitiya.

“The overall showroom traffic had dropped more than 40 per cent and even most of these customers who walk in, go away without purchasing due to high pricing. In some cases certain vehicle showrooms have no customer visits at all in a day” he said.

“Last week’s leasing regulations announced by the Government for vehicles based on loan-to-value ratio, as proposed in the 2017 budget is another blow to sustainability of the trade.

“If leasing companies are ready to provide facilities and the buyer is agreeable with the settlement, there is no need for the Government intervention, to artificially regulate the trade” .

In addition to this it is also important that the decision makers figure out the cost of maintaining old vehicles and their environmental impact as well before policies are formulated.

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