Vehicle practicalities

Thursday, 21 April 2011 00:54 - - {{hitsCtrl.values.hits}}

IT is no surprise that vehicle imports have boomed with the reduction of taxes. A recent report released by the Ceylon Chamber of Commerce (CCC) notes that imports rose by a whopping 215% year-on-year – a value of Rs. 117 billion.

The vehicle import market is experiencing rapid growth following the revision of import duty structure. It noted that in 2010 the value of imports recorded an unprecedented growth of 215% increasing from Rs. 37 billion in 2009 to Rs. 117 billion in 2010. India continues to dominate the Sri Lankan vehicle import market with a share of over 50%, followed by Japan accounting for 30%.

The report also observed that the demand for small vehicles is robust. In terms of quantity, imported motorcycles and auto trishaws surpass all other types of vehicles. Each year Sri Lanka imports over 100,000 motorcycles (of engine capacity 50 cc-250 cc). In 2010 the number of motorcycles imported showed exceptional growth of 97% and for the first time the number imported exceeded 200,000.

Sri Lanka imports nearly 40,000 auto trishaws each year, but in 2010, the numbers grew by 194% with import of a record number of over 80,000 auto trishaws (petrol). There is an increase in demand for diesel auto trishaws in 2010 as well, which recorded a phenomenal growth of 427%, starting of course from a low base of over 1,000 trishaws in 2009 to over 7,000 in 2010.

Small passenger cars (of engine capacity less than 1,000 cc) are also in big demand. The number imported in 2010 exceeded 12,000. The demand for small vehicles for the transport of goods is also on the rise and in 2010 recorded a growth rate of 480%. Reflecting the rapid growth in the agriculture sector, the agriculture tractors imported in 2010 recorded a growth of 152%.

Another change is the growing popularity of hybrid cars with over 400 imported in 2010, costing over Rs. 1 billion. Even though Customs has not recorded the number of hybrids that were imported in 2009, the very fact that they have established a different category is testament to the growing demand. This is one positive development of import increases since pollution and road congestion resulting in more accidents are all concerns that must be considered.

It is estimated that only 24% of passengers travel in private vehicles while 61% use public transport. Therefore to reduce congestion and provide comfort for a larger number of people, there must be measures to make public transport more comfortable. As economic standards grow, two-wheelers and three-wheelers will be replaced with larger vehicles, in turn causing more road congestion. While reduction of taxes is positive, there must be a parallel move to deal with transport challenges in Sri Lanka.

Finding the means to balance these two aspects is important in ensuring quality transportation, especially in urban areas where congestion has become a serious issue. Better usage of railways by increasing efficiency would also reduce congestion on the roads. Creating awareness to prevent road accidents and promote safe driving is also essential if Sri Lanka is to gain the best from its change of fortunes.