Vehicle prices in the local market have fallen significantly, according to the Vehicle Importers’ Association of Lanka.
Addressing a press conference in Colombo on Wednesday (16), Association President Indika Sampath Merenchige said many dealers were currently selling vehicles at a loss due to prevailing market conditions.
He described the current situation as an ideal opportunity for prospective buyers and expressed confidence that vehicle prices would decline further.
Prices of several popular models, including the Toyota Yaris and Vitz, Honda Vezel, Suzuki Wagon R, Daihatsu Mira and Suzuki vans, have fallen by between Rs. 300,000 and Rs. 1 million in some cases, he said.
Merenchige also highlighted what he described as serious disparities in the taxation of used vehicles.
He said taxes were calculated based on retail prices published on websites, resulting in vehicles that were three or even 10 years old being taxed at values close to those imposed on brand-new vehicles.
In some instances, the tax imposed on a used vehicle was higher than that levied on a new vehicle, he claimed.
The Association urged the Government to revise the gazettes governing vehicle valuations and inspections, saying they had not been updated for years and were placing an unfair tax burden on importers and consumers.
A surge in vehicle imports following an import suspension of nearly five years, coupled with the subsequent imposition of a surcharge, has reportedly caused sales to decline sharply.
As many importers are now compelled to sell vehicles below cost, the Association said consumers should take advantage of the opportunity before the market recovers.
