Sri Lanka's move to cut import duty on 800-1,000cc vehicles a boost for India's small cars?

darklord · 29th May 2016, 10:32

Quote:

Sri Lanka has reduced import duties on 800 and 1000cc cars while increasing duty on higher engine capacity cars, a move likely to benefit India-made smaller vehicles.

Quote:

A majority of this category imports are dominated by the India-made cars. An example is of the India-made Maruti Wagon-R.

The tax range for such cars is expected to come down from its present tax range of 1.5 to 1.6 million Sri Lanka rupees to about 1.35 million, car dealers said.

http://www.dnaindia.com/money/report...l-cars-2217676

GTO · 30th May 2016, 17:30

In one word = NO.

As things stand, it's an incredibly small market with annual new car sales in the region of a lakh only (source). Any effect on small car exports from India will be marginal at best.

blackasta · 30th May 2016, 19:19

Sri lankan rupee is roughly half as valuable as the Indian rupee.
That means Sinhalese spend 7.5-8 lakh INR on taxes only

An Alto800 might cost 10 lakh INR there !
Are incomes such high or only the elite can own cars there in Sri Lanka?

The Rationalist · 30th May 2016, 20:19

Srilankans are having a better financial situation compared to us. They have a middle class who are better off than our middle class.They don't prefer Indian cars, they prefer Japanese ones. But three wheelers are almost all from India. They have a better road manners too. During my visit have traveled the Southern expressway, the only one opened at that time and it's a beautiful one with lush greenery on either side. To be honest, I was surprised to see the cleanliness of most places, maybe they can't spoil their reputation as a tourist destination.

30th May 2016, 17:30	#2
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,512 Thanked: 300,678 Times View My Garage	Re: Sri Lanka's move to cut import duty on 800-1,000cc vehicles a boost for India's small cars? In one word = NO. As things stand, it's an incredibly small market with annual new car sales in the region of a lakh only (source). Any effect on small car exports from India will be marginal at best.
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30th May 2016, 19:19	#3
blackasta Senior - BHPian Join Date: Aug 2009 Location: WB 26 Posts: 3,406 Thanked: 2,917 Times View My Garage	Re: Sri Lanka's move to cut import duty on 800-1,000cc vehicles a boost for India's small cars? Sri lankan rupee is roughly half as valuable as the Indian rupee. That means Sinhalese spend 7.5-8 lakh INR on taxes only An Alto800 might cost 10 lakh INR there ! Are incomes such high or only the elite can own cars there in Sri Lanka?
	() Thanks

30th May 2016, 20:19	#4
The Rationalist BANNED Join Date: Apr 2015 Location: Kochi Posts: 924 Thanked: 7,279 Times	Re: Sri Lanka's move to cut import duty on 800-1,000cc vehicles a boost for India's small cars? Srilankans are having a better financial situation compared to us. They have a middle class who are better off than our middle class.They don't prefer Indian cars, they prefer Japanese ones. But three wheelers are almost all from India. They have a better road manners too. During my visit have traveled the Southern expressway, the only one opened at that time and it's a beautiful one with lush greenery on either side. To be honest, I was surprised to see the cleanliness of most places, maybe they can't spoil their reputation as a tourist destination.
	(1) Thanks