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Sri Lanka does a Maldives, raises excise on Indian vehicles by 73%

Here is an interesting piece of news for comparison:

Bloomberg - India’s Power Ministry Endorses Tripling Duty on China Equipment

Was it right in that case... but wrong in this case?

And before anyone starts talking about low-quality power equipment, it was actually the British-designed power grid that caused the nation-wide blackout in India. Not our exported equipment.

The difference is quite simple, here India is protecting Domestic Indian Power Equipment industry while SL while increasing tariff barriers for Indian companies simultaneously decreasing it for Japanese compaies...:angry:

So u can see that protecting Domestic industry is very much different from providing unnecessary benefit to some foreign country against another foreign country...:)
 
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Do you know how much we have to pay for a Tata Nano... it's 9 lax 1-2 years back. Our car market is really F$#%^ up.

We pay about 2 lakh for high end Tata Nano. why so much premium??
 
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Wow creating a trade barrier. Sri Lanka will be punished for this. I promise we will make you guys perish in one way or the other.

I just hope you meant punish. Sri Lankan's are our close brothers and we don't mean no harm.:D
 
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Sri Lanka vehicle ownership slowdown continues, trishaws rebound

Trishaws have rebounded 4000 units a month to 8009 in July 2012 with the peak reaching around 11,000 in January 2012 Statistics shows

A slowdown in Sri Lanka's vehicle ownership continued with registrations for July 2012 dropping 55 percent to 26,799 from 41,481 a year earlier, JB Securities said.

In the first seven months of 2012 registration of brand new and reconditioned cars slipped to 18,376 units from 31,462 compared to the same period last year.

Earlier in the year Sri Lanka slapped new taxes of as much as 100 percent of import value on some imported cars, but raised taxes on hybrid cars at a lower rate in a move to ease congestion on roads, cut fuel costs and to reduce the import bill amid a deepening balance of payment crisis.

According to data from Sri Lanka's Department of Motor Traffic, registration of smaller cars below 1000cc engine capacity has dropped to 7,343 in the first half of 2012, compared to 12,432 registrations in the same period last year.

Industry officials estimate new vehicle registrations may drop up to 40 percent in 2012 and dreams of motor bike owners to move on to small cars will be shattered.

Motor trade officials say a state import duty hike has sent prices of smaller cars (below 1000 cubic centimeter engine capacity) like the Indian-made Maruti Alto up putting them beyond reach of the people with modest incomes.

Sales of Maruti Alto, Sri Lanka's best-selling car fell to 127 units in July 2012 from 858 units in July 2011, JB stockbrokers, an equities research house said.

Cherry dropped to 4 units in July from 41 in the same period last year, Maruti/Suzuki to 236 from 1373, Nissan to 3 from 58 and Toyota to 27 from 66 units.

Motor cycle sales in July 2012 dropped to 11,315 from 20,460 compared to the same period last year.

Trishaws have rebounded 4000 units a month to 8009 in July 2012 with the peak reaching around 11,000 in January 2012.

Approximately 85 percent of trishaws, 48 percent of motor bikes and 88 percent of lorries are bought on credit, JB securities said.

Direct purchase of motor cars has gradually decreased to 694 units in July 2012 from 1,171 units in May this year.

Lanka Business Report
 
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Sri Lanka seems to want to reduce the number of vehicles as they do not have any source of oil in the country. All of the oil has be to imported and since Sri Lanka does not export much the trade deficit must be hugely imbalanced.

I think their major export is Tea and rubber along with manpower to the middle east. However they have nothing to gain by antagonizing India and everything to loose. If India decides to cut of trade to Sri Lanka the import bills would shoot up draining the economy further.
 
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Check out the Indians whining even more...


Auto industry cries foul on Sri Lanka's 'anti-India' stand

Ronojoy_cnbc_190.jpg


Auto industry cries foul on Sri Lanka's 'anti-India' stand - CNBC-TV18

And I guess voting against SL at the UN was "pro Sri Lanka"? LOL

Sponsor the LTTE, vote against SL at the UN, refuse to have a normal defence relationship, pander to politicians advocating separatism in SL and still want preferential treatment?

How interesting.

There are countries which have regressive tax regimes on Automobile imports like Bangladesh and SL becomes one today. It effects the middle class more than the upper class. Unfortunate, but true.

Now Maruti is saying that they will be selling only 2500 cars yearly because of Tax structure. It came down from 15000 cars which they exported to SL. At this rate they will pull the plug and exit the SL market entirely.
 
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[:::~Spartacus~:::];3686502 said:
we will help out our best friends in any way possible, srilankan friends

pakistani srilankan bhai bhai

Sounds very familiar to what you said when you invited their last Cricket team to your shores.
 
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It doesn't matter if its Power, Telecom or automobiles .....China is a nation that has supplied unstable countries with Nukes and Missiles.

Its common sense not to let it benefit much from trade with India.

dude wake up India's trade deficit with China is almost $20 billion !
 
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Try middle east :toast_sign:
Be assured Indian Automobile industries are not going to die due Lanka's this move.....................
Indian Cars are more fuel efficient..........................
 
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