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Jul 30, 2020

Vehicle importers fear collapse of industry following ban Featured

 

The vehicle import ban has adversely impacted thousands of Sri Lankans and vehicle importers may be forced to take drastic action to survive, a trade association in Sri Lanka that represents automotive manufacturers through their local importers, said today.

The Ceylon Motor Traders Association (CMTA) urged the Government to provide a clear direction on the period of the vehicle import suspension and emphasized the need to regulate automotive imports to legitimate importers that have been vetted by the Government.

“First and foremost, we appreciate the Government’s leadership and initiatives taken to control the spread of COVID-19 in Sri Lanka. Our situation is far better than most countries around the world thanks to the Government’s actions. However, the vehicle import ban has adversely impacted thousands of Sri Lankans and it is the responsibility of the Government to communicate clearly to us as to when it will be lifted so that businesses and citizens can plan ahead. In addition to the lifting of the ban, the other key issue is for the Government to introduce proper regulations to take the industry to the next level.”

He said that the CMTA plays a significant role in the transportation sector by acting as the bridge between Sri Lanka and automotive manufacturers worldwide.

“In 2019, the CMTA commenced development of a policy recommendations document detailing a Future Mobility Plan for Sri Lanka. The CMTA is working with international applied research agencies and international partners to create this proposal, which the association will present to the Government upon its completion,” Amerasinghe said.

CMTA consists of all the franchise holders of global automotive brands that import and market cars, commercial vehicles, 2-wheelers and 3-wheelers, as well as tyres and lubricants, with substantial investments into island-wide infrastructure to providing direct & indirect employment to over 20,000 individuals across the island.

The association reiterated that the complete suspension of all vehicle imports has caused great hardship to the entire industry.

It requested the Government to provide a firm timeline on when it plans to recommence imports.

CMTA also said that if the expected date is several months into the future the Government should provide support to the industry so that it can sustain its employees and overheads as importers will soon have no stocks and no vehicle sales income.

“We would very much like to have a constructive dialogue with the relevant Government authorities to try to work out a mutually viable way forward” Amerasinghe added.

While the CMTA understands the challenges faced to the country’s economy and foreign reserves, and its members have accepted their share of the burden and are trying their best to minimize salary reductions and/or job cuts so far, the member companies and their dealers will have no option but to take drastic action to survive as there is no clear direction to plan otherwise.

The association stated that soon after the vehicle import suspension, the organisation submitted letters to the relevant authorities requesting for clear communication as to when the import restrictions are expected to be lifted in order to make plans to ensure the continuity of the industry.

“Unfortunately, there has been no proper response to these requests leaving the industry uncertain of its future,” CMTA said

CMTA strongly believes that the Government also needs to take steps to regulate automotive imports. It suggests that the Government implement a scheme to screen and register vehicle importers to control the quality and quantity of imports of motor vehicles.

(colombogazette.com)

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