business Sri Lanka

BOI Chairman Sanjaya Mohottala indicates despite requests from top decision-makers from the government to remain in his post he has decided to relinquish himself from the position of BOI Chairman.

The following is a release from his office;

“After a meeting held this week with the President Gotabaya Rajapaksa, the Chairman of the Board of Investment of Sri Lanka reiterated his desire to step down from his post.

The Chairman further said that he was grateful to the government for placing the highest confidence in him and the Board and for requesting them to continue to serve and contribute effectively to promote foreign investments to help the post-COVID economic transformation of Sri Lanka.

He requested for a new leadership team to be appointed, so that they may continue with the efforts already made to further improve the services offered to investors, and thereby realise the vision set out by the government of Sri Lanka to double GDP over a decade.”

Within the framework of Planning Round 70, the Volkswagen Group resolved to further electrify its European plants in pursuit of its goal of becoming global market leader in electric mobility by 2025.

Thus, the Group vigorously drives forward the implementation of its NEW AUTO strategy. The Group headquarters and manufacturing site in Wolfsburg will be transformed and the Group’s competitiveness boosted through higher spending on future technologies. The future-oriented investments, which will be primarily in e-mobility and digitalization, will account for the largest proportion of total investments of EUR 159 billion for the first time, at 56 percent or EUR 89 billion. Volkswagen expects that by 2026 one in four vehicles sold will have a battery-electric drive system.

www.volkswagen-newsroom.com

Augmenting the after-sales care facilities offered to its Bajaj customers, David Pieris Motor Company (Pvt) Ltd. launched DPMC Workshop Express recently to provide best care, quality and convenience.

DPMC Workshop Express

‘DPMC Workshop Express’ operates under the umbrella of the flagship ‘DPMC Workshops’ situated in Madapatha and Matara.

DPMC Workshop Express in Badulla, Ratnapura, Anuradhapura, Kurunegala, Mathugama and Ampara are open from 8. 30am to 5.00pm from Monday to Friday.

Selected services, maintenance,running repairs, accident repairs (minor repairs for three wheelers), engine oil change, emission testing and issuing estimates, etc. are available for Bajaj motorcycles, three wheelers and Qute.

Bajaj Genuine Spare Parts and Bajaj Genuine Oil are used exclusively for all services carried out at a DPMC Workshop Express and substandard parts are not used under any circumstance.

Additionally, the standard discounts offered at DPMC Spare Parts Outlets are available for parts purchased and used for vehicle services at DPMC Workshop Express.

DPMC Workshop Express operates under health guidelines issued by the Government to prevent the spread of COVID-19 pandemic.

Leveraging technology to provide bespoke, cost effective options, D P Logistics launched TruckBuddy a web solution that offer smart transport solutions.

With the expertise D P Logistics has garnered over the past two decades in the transport business, the platform is customized for multi industry verticals such as apparel, FMCG, industrial and electronics.

Technology takes the pain out of finding, evaluating, and negotiating with transport suppliers on a case by case basis and the extensive manual work involved in planning, monitoring, generating of reports and similar tasks.

D P Logistics is equipped with a 24/7 monitoring control center to ensure the cargo is delivered to the destination in a safe manner, meeting the expectations of its valuable customers. Company specific report templates and dashboards facilitate decisions based on data and real time GPS tracking and alert system ensures the security of the cargo until it reaches the destination.

DPL also has the added edge of being able to leverage on its own extensive fleet which includes both general purpose and specific vehicles such as cement carriers, automotive carriers, and specialized project equipment to provide customers with greater options.

Given the extremely challenging times faced by customers due to increasing freight/ transportation costs D P Logistics has been focusing on ways and means of reducing expenses, while increasing efficiency and this is the second such initiative introduced in the recent past which leverages on technology. The first was the introduction of Robotic Process Automation (RPA) to its 3PL and warehouse operations.

A David Pieris Group Company, DP Logistics covers the entire spectrum of logistics and supply chain management solutions including: Transportation, 3rd Party Logistics (3PL), Warehouse Management and Freight Forwarding.

All-electric vehicles (EVs), also referred to as battery electric vehicles, have an electric motor instead of an internal combustion engine.Because it runs on electricity, the vehicle emits no exhaust from a tailpipe and does not contain the typical liquid fuel components, such as a fuel pump, fuel line, or fuel tank.

A PHEV(plug-in hybrid electric vehicle) usually offers a much greater driving range than most comparable Pure EVs do, with their combination of power sources. Although the range does vary with different models, many PHEVs can achieve around 300-400 miles with both petrol and electric sources used.

On a shallow / short-term view it will reflect that electric vehicles benefit the environment more than plug-in hybrids, since they don't use any fuel at all. However, the manufacture of batteries is a heavy CO2 emitting mechanism.

Additionally, belief is that electric vehicles help drivers save more money than plug-in hybrids do, since they don't use any fuel. However, this has to be considered along with the many other factors, such as cost of value drop, cost of replacement battery etc.

A budget electric vehicle (EV) selling in China for $4,500 (£3,200) is now outselling Tesla's more upmarket cars. The compact car is proving a big hit for state-owned SAIC Motor, China's top automaker. The Hong Guang Mini EV is being built as part of a joint venture with US car giant General Motors (GM).

Last month sales of the budget electric car in China were around double those of Tesla, which was questioned this month over safety issues there. While the $4,500 Hong Guang Mini is the most popular model, there is an upgraded one with air conditioning for just over $5,000. The cars are being marketed as "the people's commuting tool".

Car experts have said that while it clearly lags well behind Tesla when it comes to its battery, range and performance, its convenience and low price have made it one of China's bestselling "new-energy" vehicles. Having launched last year, the basic model has a top speed of 100km/h (62mph) and can accommodate four people at a squeeze.

"China's government is serious about pollution reduction and becoming the global lead in adopting and promoting innovation of electric vehicles," Shaun Rein, managing director of the China Market Research Group, told the BBC.

"We remain very bullish on the adoption of budget EVs like the Hong Guang Mini to higher end ones like NIO and Tesla." To promote EVs, the Chinese government offers license plates for free and they are guaranteed. In many cities, it can take months, if not years, to get a license plate for a petrol engine through various auction systems. The Hong Guang Mini EV saw sales of 112,000 for the second half of 2020, ranking second behind Tesla's Model 3 which are made in its Shanghai factory. Earlier this month five Chinese regulators summoned Tesla over quality and safety issues at its plant. China is Tesla's largest market after the US. For January, Hong Guang Mini sales outstripped Tesla almost two-to-one. It is now believed to be the second-best-selling electric model worldwide behind the Model 3.The tiny, all-electric EV sold 25,778 models in China in January according to the China Passenger Car Association (CPCA). This compares to 13,843 for the Tesla Model 3.

But high-end electric vehicles have still been performing well with Tesla more than doubling its sales volume in China last year. The Model 3 sells for about $39,000 (£27,000) in China factoring in price cuts due to its local production. The Hong Guang Mini EV could make an appearance outside China, as Wuling has said it plans to export the EV overseas.

"China has so many makers of small and cheap electric vehicles, however most of them are low-quality and low-speed products that do not appeal to a wide market, said Sam Fiorani, at Auto Forecast Solutions. "The Hong Guang Mini is the first time a major company has stepped up with a simple EV that targets buyers looking for a real car."

Reports have linked Wuling to a Latvian automaker who could sell a version of the car in Europe. However, the price is likely to be twice as high due to European environmental requirements. BBC

The Motor Industry is in a very sad state mainly attributed to the blunders made by the policy makers, asserted industry expert and Past President Ceylon Motor Traders Association (CMTA) Reeza Rauf. In an interview with Daily News Motor Rauf requested policy makers to come to a consensus with stakeholders to protect the industry for its survival and implement government policies maintaining a level playing field.

Excerpts of the interview

Q: What is your perspective of the motor industry today?

Whilst we understand the present pandemic situation has affected the motor industry in the recent past I have to give you a very short answer to this: it is precarious and is in a very sad state mainly attributed to the blunders made by the policy makers.

Q: What are the consequences importers face due to the import ban?

The consequences are immense as an industry which raked in one of the highest tax revenue to the government has collapsed from the government's revenue point of view, from the industry’s point the legitimate importers investments are huge and its long term planned with providing large amounts of job opportunities locally and helping trained technicians/ mechanics to seek employment opportunities internationally. Difficulty in running the business, unable to recover overhead costs, retrenchments, lost job opportunities for the younger generation .

Q: What are your suggestions to revive the industry?

Today It is not about reviving the industry, it's about surviving, It is common sense that the transport industry plays a pivotal role in a country's development. If this is hampered the development is also affected. The Automobile industry needs long term planning, huge investments in terms of setting up infrastructure, training manpower with long term steady policies for its survival, you cannot compare it with imports of onions and potatoes and change policies overnight. If you look back into history you will find almost at every budget the custom duties and import categories are changed sometimes drastically which puts the industry in very unstable situations. Our suggestion is to come to a consensus with the stakeholders to protect the industry for its survival and implement government policies maintaining a level playing field.

Q: How has the corona pandemic affected the livelihoods of the motor stakeholders?

Definitely yes, this phenomena is not only confined to Sri Lankas, but is a global problem but the lesson to be learnt is that as an industry we are more affected and put into more difficulty due to wrong and adhoc policy decisions taken unlike in other countries.

Q: What do you expect at this moment from the government?

Have a clear and long term policy and avoid adhoc and short term policy decisions which have been happening from time to time. In order to overcome the present crisis situation of the legitimate vehicle importers at least allow imports on a quota system,

What are the relief and concessions the industry needs at this juncture?

As an industry we don’t need concessions but allow us to import the vehicles ordered and LC’s established prior to the import ban. Also ensure that we are allowed to carry on our businesses in a manner that we can sustain and justify our investments and to take care of our employees.

Q: How have these stringent measures affected your relationships with vehicle manufactures?

This has affected us very badly as we have gone against the international business norms, and as a nation we have lost our credibility and we have lost our recognition as a country to do reliable business, the most shocking is that we were not allowed to import vehicles for LC’s already established with the sudden import ban and this has made manufactures lose confidence and faith on us. When imports are allowed the future imports will see additional cost as manufactures will insist on Confirmed LC’s

Q: How will the non imports affect development activities in the country?

An efficient transport system is essential be it passenger or commercial for development of the country as this will help minimise downtime, inefficiency of ageing vehicles is a hindrance and also cost more to maintain

Q: What are the social impacts of the prohibition of vehicle imports?

Past records show that almost 70% of vehicles purchased are on borrowings, the reason being we don’t have a efficient and comfortable public transport system, due the ban of imports the used vehicle market has artificially skyrocketed which doesn’t reflect the actual residual value this also can result in high cost on insurance premiums, end of the day the common man has to face the brunt of it creating a total imbalance in the market.

Q: Will there be a relaxation to import curbs by the government?

I can't see the light at the end of the tunnel, nor are we getting a decent reply from the authorities in this regard , we are basically kept in the dark

Q: How has the pandemic and ban affected your business?

The pandemic has definitely affected the business from all angles. Manufacturers are facing short supply of components and there are delays in production, the costs have shot up with escalated production and freight cost. However we are mostly affected by the import ban

Q: How are you planning to adjust to the new normal?

We are shifting our focus to pre owned vehicles and after sales and repair of vehicles with value added services with adapting or accommodating multi brands. As distributors this is not the ideal way of doing business but we have no choice but to be forced into it for our survival.

Q: What are your thoughts on introducing EV (Electric Vehicles) ?

Whether we like it or not we will have to accept this as the future of automobile is turning into EV. Having said that, we need to carefully study the impact before making any hasty decisions. Even though a couple of manufactures have EV vehicles it is still in its initial stages. Certain developed countries in Europe have begun to go full EV in the next 10 to 20 years. The shifting is not going to be that easy, the point to note is the price against the ICE (internal combustion engines) vehicles.

EV are far more expensive and can we really afford it being a third world country, the question is are we ready with the infrastructure with charging points. Do we have sufficient renewable energy for charging rather than depending on thermal power. We need to allocate time for training technicians, disposal/recycling of batteries etc. If sudden policy changes come in without proper study and analysing the repercussions to the industry and to the nation would be detrimental.