Vehicle market chaos costs SL investor confidence: AMW

Saturday, 12 September 2026 00:16 - - {{hitsCtrl.values.hits}}

AMW Group MD Jawahar Ganesh says says nearly 30,000 Nissan and Suzuki units have entered Sri Lanka outside authorised channels
Warn manufacturers now evaluate market by a shrinking 30% slice controlled by official distributors

Group Managing Director

Jawahar Ganesh

– Pic by Sameera Wijesinghe

Sri Lanka’s policy-driven distortions in the vehicle market are reducing the country’s attractiveness to global automotive manufacturers, with authorised distributors warning investment decisions are increasingly being assessed against a market in which they effectively control only a fraction of total vehicle business.

Ceylon Motor Traders’ Association (CMTA) representatives in a media briefing on Thursday, flagged the issue went beyond the immediate impact on distributors, extending to foreign investment, skills development, employment and Sri Lanka’s ability to build a stronger automotive ecosystem.

Associated Motorways Ltd., (AMW) Group Managing Director Jawahar Ganesh speaking from the perspective of an investor representing longstanding Japanese brands, he described Sri Lanka’s market structure as highly unusual, with around 30% representing “normal business” for authorised distributors and the balance 70% operating through other channels.

The issue has become particularly significant since vehicle imports were reopened, with Ganesh saying nearly 30,000 Nissan and Suzuki vehicles had entered Sri Lanka through channels outside the authorised distribution network.

He asserted that international manufacturers consequently assessed Sri Lanka based on the portion of the market in which their authorised partners actually operated. “Those cars were not sold by the authorised dealers or manufacturers. So they look at the Sri Lanka market, not from that prism. They look at the 30% of the market where we play,” he said.

Ganesh said a more predictable and properly functioning market would give international manufacturers greater confidence to maintain and expand their commitments to Sri Lanka.

“We have committed billions. We will invest in much more. Our intention is to do that, but the market size has to be there,” he stressed.

However, he said that manufacturers and authorised distributors could not confidently justify major capital commitments without a predictable market and a level playing field.

“In order to have a say towards the manufacturers, and the investors; we need to have a proper market. Simple as that,” Ganesh said.

(CdeS)