LNP – New vehicles arriving soon; second-hand market to drop 10-15%: Importers

New vehicles will arrive in the country within the next two or three weeks. After their arrival, the existing second-hand market in the country is expected to decline by 10 to 15 percent, President of the Vehicle Importers’ Association of Sri Lanka, Prasad Manage said.

Addressing the media, he said that the government has permitted the import of all types of vehicles starting from February 1.

Prasad Manage claimed that the prices of certain categories of vehicles would increase, while others would decrease in the local market.

Accordingly, the government has allowed the import of jeeps and cars up to three years from their manufacturing year, vans and cab vehicles up to four years, and buses and lorries up to five years.

“Four layers of taxation will be imposed on vehicle imports, including a special import tax based on the vehicle’s value, luxury tax, Customs tax and Cost, Insurance, and Freight (CIF), along with the existing 18% VAT. Additionally, a recent gazette notification introduced a 50 percent Customs surcharge on cars and jeeps, resulting in a price hike for those vehicles,” he said.

The existing price of a Suzuki Wagon R is expected to decrease with the new imports. A new Suzuki Wagon R is anticipated to be priced between Rs. 7 million and Rs. 7.2 million, while other Wagon R models will range between Rs. 6 million and Rs. 7 million.

The price of a Japanese Alto car is also expected to decrease, with new imports priced between Rs. 3.5 million and Rs. 5 million. 

Meanwhile, the second-hand market is projected to decline by 10 to 15 percent.