Mahindra Group to see SUV market sales boom
Harshini Perera
Mahindra Group has set a target of 10,000 vehicle sales for Sri Lanka
by the end of 2013 while regarding Sri Lanka as an important and growing
market.
Ideal Motors expects to increase sales to 6,000 with the tourism boom
and the Cricket World Cup session starting in February, Ideal Motors,
Chairman Nalin Welgama told Daily News Business. Ideal Motors followed
by the 100 percent tax concession on SUV vehicles will import Mahindra
double cabs to Sri Lanka next January. Currently the SUV tax is at 112
percent and this will increase the demand for SUVs in Sri Lanka.
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Mahindra Finance soon
Mahindra Group has shown
interest in setting up Mahindra Finance in Sri Lanka and
Ideal Motors is looking at possibilities of acquiring an
existing company or to start out as a new finance company.
The company has initially allocated Rs 200 million for the
purpose. The company considered several available companies
for acquisition in Sri Lanka while considering the
possibilities of starting new. |
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Nalin
Welgama |
“The light commercial vehicle segment is used for commercial purposes
and also as a family carrier.
The four wheel light commercial vehicles market has received a good
demand from newly liberated areas in the country,” Welgama said.
Mahindra will dispatch 4,000 vehicle units for this financial year
and this will consist of three-wheelers and light commercial vehicles.
“The market share of Mahindra in Sri Lanka is currently 25 percent
and once we launch new vehicles such as Mahindra Maximo, we expect to
increase it to 40 percent. We need to be the market leader in two years
in all segments of Mahindra,” Welgama said.
Ideal Motors will provide 485 units of Mahindra Scorpio to the Police
Department next year. Ideal Motors will also introduce two-wheeler
vehicles to Sri Lanka by the first quarter 2011 which will be a
challenging market for Ideal Motors.
The company together with new products will increase sales dealers to
35 from 19 by the end of this year.
Ideal Motors, the distributor in Sri Lanka for Mahindra vehicles will
locate four regional hubs in the country covering the entire island. The
four regional hubs will cater to the growing volumes of the company in
two-wheelers, three-wheelers, light commercial vehicles and heavy truck
segments.
“The regional hubs will enable the company with logistics
capabilities and support customers with delivery and spare parts of
vehicles.
“The investment for the four regional hubs will be Rs 10 million.
Ideal Motors has recognized possible key areas for the four regional
hubs such as Kilinochchi or Vavuniya, Kalutara, Dambulla, Ratnapura and
a location in the East,” he said.
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