The light truck market has been badly hit due to the increase in import duty as proposed in the 2017 Budget, Chairman, Ideal Motors Limited, Nalin Welgama said.
The light truck sector comprising vehicles such as the Dimo Batta is used by small businessmen as a dual-purpose vehicle.
“Purchasing a light truck today is beyond the reach of many. As a result, sales in this segment which was extremely good until November last year, dropped by around 40 percent after the revision of import duty,” Welgama said. The duty on light trucks which was low, was raised to curtail imports of this segment of vehicles which was flooding the roads. However, sales in the heavy truck segment has been satisfactory for vehicle merchants with the Loan to Value Ratio remaining at 90 percent. “We will focus on the heavy truck segment along with our venture into construction equipment and generators this year,” Welgama said. Ideal Motors has been the partner in Sri Lanka for Mahindra and Mahindra Ltd, a part of the USD 17.8 billion Mahindra Group, based in India, for the past seven years for utility and light trucks.
The Mahindra Group launched the truck and bus, construction equipment and generator businesses in Sri Lanka last week.
“Our objective is to offer world-class products to customers at competitive prices. With their tough and rugged DNA, we believe that Mahindra vehicles and equipment have a strong value proposition which will make these the preferred option in their respective segments,” Welgama said.
Mahindra and Mahindra Ltd., Vice President, Head of International Operations, South Asia, Sanjay Jadhav said, Mahindra has strengthened its position in Sri Lanka with its wide range of pick-ups and is geared to further bolster its position with the launch of a new range of products.
“We are delighted to launch the Mahindra range of trucks and buses, construction equipment and diesel generators in Sri Lanka, which has strategic importance for Mahindra in the South Asia region. Mahindra vehicles have carved a distinct niche for themselves in Sri Lanka with their combination of rugged utility and style,” Jadhav said. Blazo 49, Traco 40, Torro 25 tipper, Loadking Optimo and Cosmos range buses in the truck and bus segment while Earthmaster SX 4WD for the construction sector and 7.5kVA-200 kVA diesel generators were launched at the event. - LF