Global Automotive Industry undergoing massive changes – CMTA

The Global Automotive Industry is undergoing massive changes from Internal Combustion Engines (ICE) to electric and Sri Lanka too is falling in line with this trend, said Chairman Ceylon Motor Traders Association (CMTA), Sheran Fernando.

Addressing the 98th AGM of CMTA, Mr. Fernando said it may take another 10 to 15 years for some of these technological changes to become a reality in Sri Lanka. “However CMTA has already seen signs of changes happening such as the banning on both petrol and diesel vehicles by 2040.”

He said air pollution is pushing not only European countries but also China and India to actively pursue electric vehicle manufacturing with a view to eradicating combustion engines by 2040.

Fernando further said most of the large vehicle manufacturers such as Volvo, GM, VW, BMW, Jaguar, Toyota, Nissan, Ford and Fiat have already announced that their change over to electric models. “Companies like Volvo announced that all models introduced in 2019 and after would be hybrid or electric.”

He said in addition the CMTA needs to focus on pollution, congestion, regulation and safety and work with the government to ensure that the necessary regulations which are brought will benefit Sri Lanka and its people.

The CMTA will also use its collaboration with international manufacturers, international trade associations, business chambers, universities, academics and the government to float a sustainable industry master plan.

The objective of establishing the CMTA in 1920 is to ensure sustainable growth of the automotive industry in Sri Lanka and also to promote, foster and protect the country’s new vehicle motor trade, the new motor vehicle franchise holders and authorized vehicle distributors.

The Chairman also said the country’s motor industry has faced numerous challenges in the past and many of the drivers of the industry such as duty, exchange rates, interest rates and leasing regulations were not controlled by the industry.

He also expressed concern over the country’s current taxation system on all types of automobiles and highlighted that authorities should look into this in a more simplified manner by introducing a more common tax system for all types of motor vehicles.

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