Sri Lanka’s United Motors diversifies into commercial and earth moving vehicles
United Motors Lanka, which is the Sri Lankan agent for Mitsubishi automobiles, has reportedly announced it was diversifying into commercial and earth moving vehicles as passenger car sales slowed down.
The Company, according to its annual report for 2018-19, has reported lower sales and profits in the last financial year owing to the fall in demand for vehicles after import duty hikes and restrictions.
United Motors Lanka (UML) Chairman Sunil Wijesinha has reportedly stated that the company’s core business of import and selling of motor vehicles has been under stress for the past few years as result of the ad hoc policy changes coupled with rising local and international ‘Eco political’ uncertainty.
“We see more prospects for commercial and earth moving vehicles than for passenger cars,” Wijesinha has stated in the company’s annual report.
“We realise that we are in a competitive market segment which has narrow profit margins and is sensitive to policy changes, and are adjusting our approach accordingly.”
The Chairman has stated that he sees growth prospects for UML’s newest subsidiary, UML Heavy Equipment Limited, in the near future with the improved performance of the construction sector once stability is restored.
“There will be less demand for passenger vehicles as new modes of transport come into effect and disruptive technologies drive the automotive and transportation industry of tomorrow,” Wijesinha has added.
OSL take:
The diversification in to commercial and earth moving vehicles by Sri Lanka’s United Motors is indicative of the business potential in the field of heavy vehicles and machinery. Given Sri Lanka’s aggressive development programme, the business potential for supplying heavy vehicles and machinery is bound to increase. Therefore, foreign businesses engaged in the manufacture and trade of heavy vehicles and machinery could explore the opportunities in supplying to Sri Lanka.
| Article Code : | VBS/AT/09072019/Z_8 |