Automobiles assembly industry dominates the SL market releasing 44,430 vehicles
June 08, Colombo (LNW): Automobiles assembled in Sri Lanka with the involvement of world-renowned brands including Hyundai, Proton, BAIC, DFSK, Wuling, Mahindra, TATA, Bajaj, TVS, JMC and Lanka Ashok Leylandare flooding the local market despite the ban on vehicle imports.
State Minister of Finance Ranjith Siyambalapitiya yesterday revealed that 44,430 vehicles have been released to the market despite the import restrictions in place.
“This includes 38,144 motorcycles and 6,286 cars,” he said during a discussion held at the Finance Ministry with a group of local vehicle assembly representatives.
He pointed out that despite the restrictions on vehicle imports, the assembly and sale of vehicle parts have continued unabated.
The meeting saw representatives from various domestic vehicle manufacturing companies discussing the potential lifting of import restrictions.
They emphasised the need to balance import policies with the growth of local assembly businesses, which have seen a boost due to the import restrictions.
The representatives underscored that the restrictions have acted as a catalyst for the vehicle production industry in Sri Lanka.
They highlighted that developing a robust domestic vehicle manufacturing sector is a long-term endeavour that requires sustained support and investment. Minister Siyambalapitiya assured that the Government is committed to boosting local businesses.
Sector Advisory Committee for Automobile for the Ministry of Industries Chairperson Dimantha Jayawardena said, “Sri Lankan automotive component manufacturers went through one of the toughest business cycles from 2020.
The Sri Lanka Government is promoting automobile component manufacturing as a trust sector for growth and has a plan to grow exports from $ 200 million to $ 1 billion.
Accordingly, the approval to assemble a wide range of vehicles including SUVs, Cars, Two-Wheelers, Double-cabs, Trucks and Buses has paved the way for a diversified automobile assembly industry in the country catering to various consumer needs
Now electric bikes, KD Rize, Dyno and Senaro are also involved in the local assembly of motorcycles.
More than four assemblers including JAC and FOTON will be starting assembly in Sri Lanka and by the end of the year more than 30 assemblers will be in operation in the local automobile assembly industry.
These assemblers must provide a domestic value addition of more than twenty percent by using locally manufactured automobile components.
Following the Standard Operating Procedure (SOP) launched in 2021, there are over fifteen automobile and motorcycle assembly plants currently operating in Sri Lanka.
Four more assembly plants are due to begin operations within the next three months and another eleven have been registered by the Ministry of Industries. A Special Cabinet appointed Committee oversees the SOP and its governance.
