Jul 04 2016

Sri Lanka importing fewer used Japanese cars

TOKYO -- Exports of used Japanese automobiles to Sri Lanka could fall by roughly half in unit terms because of import duty hikes implemented since October, the head of the auto importers association there tells The Nikkei.

Sri Lanka was the biggest importer of used Japanese cars by value in 2015, ranking sixth overall in unit terms. But it took in just 1,066 used Japanese vehicles this May -- down 70% from a year earlier. Prices of used midsize vehicles sank 14% to 1.45 million yen ($14,128).

Midsize hybrids have been taking the brunt of the stiffer tariffs. Duties roughly doubled in May for Toyota Motors Prius and Nissan Motors X-Trail Hybrid. In the face of this, imports of used BMWs and Porsches are increasing, said Sampath Merenchige, president of the Vehicle Importers Association of Lanka.

Meanwhile, import duties on Suzuki Motors WagonR have eased, and orders for small vehicles have been coming in, Merenchige said.

Slumping exports to Sri Lanka are one cause of waning auction prices back home. The value of the average successful bid overseen by USS, the biggest auction company in Japan for used cars, declined 4.4% on the year to 625,000 yen per vehicle in May.