Increase in import taxes:

Marginal impact on Toyota

The recent increase in vehicle import taxes will have a marginal impact on the overall operations of Toyota Lanka.

Yoshiaki Kato

Toyota Lanka Managing Director Yoshiaki Kato said there will be a marginal impact on the enhancement of the import duty of motor vehicles mainly due to the taxes increased to a limited segment.

The company does not import hybrid vehicles.

“However, there will be a slight price increase in the Corolla, Yaris and Avanza cars due to the new tax regime, he said. The company is not yet importing hybrid vehicles to Sri Lanka as the product has to be tested before launching in the market.

Toyota Lanka expects to introduce hybrid vehicles after fulfilling requirements of building a knowledgeable mechanic team, fire-fighters and a system to dispose batteries in an environmental-friendly manner.

Hybrid vehicles have a battery of over 400 watts and it is vital that there is a well trained team, which has the capability of handling this product in servicing in an accident and also in changing the battery.

Toyota has given instructions with regard to the disposal of batteries in an environmental-friendly manner. Since Sri Lanka has not got the proper facilities in disposing these types of products the company is sending the batteries to Japan.

Kato said the company received a good response from the government servants’ vehicle permit scheme.

Although sales decreased due to the earthquake and tsunami devastation in North East of Japan and due to the delay of shipments; there is still a commendable growth in the sale of luxury vehicles.

(CDeS)