India Benefits from
Sri Lankan Tax Changes
Changes to the vehicle duty rates in May have increased vehicle prices for vehicles with engine capacities greater than 1000cc. As noted by the Ceylon Motor Traders Association (CMTA), the vehicles will see a notable tax increase, while vehicles that have an engine less than 1000cc will see a tax reduction.
Electric vehicles will also see an import duty change with cars having a lower capacity such as the Nissan Leaf experiencing a price drop while higher capacity vehicles such as the Tesla Model S and the Model X facing significant price hikes at the same time. In contrast, Three-Wheelers even though being low capacity vehicles should expect substantial price hikes due to new policies, while commercial vehicles are not expected to be affected from the new tax reforms.
Nevertheless, the biggest beneficiary of this new import tax change are Indian car manufacturers, who are popular in the Sri Lankan market for their low powered and low budget vehicle offerings. Maruti Suzuki may see a significant turnaround in sales despite previous attempts at setting up a plant in Sri Lanka failed to materialise.
Currently available Indian vehicles in the Sri Lanka with less than 1000cc
Under the new tax policies, a number of Indian made vehicle models will see an overall drop in selling price as they fall within the engine category of 1000cc or less. As noted, Maruti Suzuki heads this list with a number of highly popular subcompact cars. However, Tata and Hyundai also have their own share of models that are popular among the local buyers. Some of
the most popular models from Maruti Suzuki include the Alto 800, Alto K10, Celerio, Wagon R and the Stingray. Apart from that, you can also buy the latest Hyundai EON, which is also manufactured in India by the Hyundai Motor India Limited and the Tata Nano, which is still the cheapest car at its brand new condition in the local market.
Upcoming Indian models with less than 1000cc
Apart from the current range of vehicles, there are a number of new Indian manufactured cars that we can expect to see within Sri Lanka in the near future. Some of the vehicles that are already scheduled for the Sri Lankan market includes the Renault KWID, the Datsun Redi GO, Maruti Suzuki Baleno RS, Maruti MR Wagon, Volkswagen Up, as well as the recently hyped about Bajaj Qute.
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Source:insideevs.com