‘Vehicle ownership should increase in SL’

TATA Motors Limited have not stopped the production of the worlds cheapest car, Nano said President Passenger Vehicle Business Unit, TATA India, Mayank Pareek.

He said that they have not stopped production nor have they curtailed exports to the region and they continue to export Nano cars to Nepal and Bangladesh. “However as the Nano car doesn’t have some requirements in BS4 standard required by Sri Lanka the imports to Sri Lanka have stopped”.

He however said that though they don’t meet the BS4 standard requirement by Sri Lanka the Nano car is very safe. Pareek also said that TATA vehicles are being aggressively marketed in Sri Lanka and plans to double it by 2020 from around 60, 000 units per year to 100,000 by 2020. Sri Lankan motor vehicle population is still low and it should further increase. Currently out of 1,000 people only 47 own a vehicle and it should be around 70 to 80 per 1,000.

With the economic growth and the rise of per capital increase the vehicle ownership per person is growing rapidly in Sri Lanka.

To meet the additional motor vehicle capacity in the roads Sri Lankan government is also investing to build new motorways and highways and this is very encouraging.  “Increasing on car ownership is a mark of prosperity to a country and every car sold would indirect generate 5 employment opportunities.”

He said that a country should only look at import of brand new vehicles but today this is not happening in Sri Lanka.

“We observe that the brand new motor vehicle imports are low and Sri Lanka is fast becoming a used vehicle dumping yard. In contrast India does not permit the import of used vehicles.”

Paareek speaking at a round table discussion event hosted by Diesel and Motor Engineering said that they may look at an assembly plant in Sri Lanka after the next five years. “We have to study the market patterns in Sri Lanka before making an investment but its being presumed.”

Meanwhile Group CEO, DIMO, Gahanath Pandithage said that successive governments are changing the import tax on motor vehicles and this is a major concern for them. “We want a clear import tax structure which would remain for a long time.”

Asked to comment on the Electric vehicle segment he said Sri Lankan should look at the solar power option for charging as it would bring down the running costs (as against using electricity) and also help to reduce emissions.