Higher Gear

July 16, 2013 (LBO) – Sri Lanka’s re-conditioned or imported used automobile registrations hit a 19 month high in June 2012 with Japanese made Toyota and Honda brands in pole position, an analysis by an equities research house shows. Imported used vehicles rose to 1,327 in June 2013, the highest since 1,205 hit in June 2011 analysis by JB Securities shows.

Sri Lanka’s car imports plunged after April 2012 when taxes were hike in what analysts called a mistaken real-economy policy response to a monetary problem coming from the island’s soft-pegged exchange rate regime.

An analysis by JB Securities research shows that re-conditioned car registrations started to pick up from March, which could be attributed to a weakening Japanese yen.

Reconditioned vehicle registrations rose from 583 in February to 778 in March, 1,156 in April, 1,156 in May and 1,327 in June.

Re-conditioned vehicles mostly used in Japan, comes with eco-friendly devices such as catalytic converters and other devices that are not found in some export models, users say.

An industry analyst said the rush of new registrations may be due to valuations changes allowed by the Treasury.

Earlier agent’s valuations were used which were higher than t