Sep 17, 2015 (LBO) –Land Rover’s sole authorized distributor in Sri Lanka, SML Frontier Automotive says that demand in the local market is growing at a fast pace with rise in per capita income in the island.
“In our segment of the market it is the rise in the number of professionals in the country and the increase in salaries that are driving the market,” Sheran Fernando, managing director, SML Frontier Automotive told LBO.
“Sri Lanka is now moving from a non existence developing third world county into a more maturing market.”
“In 2006 Land Rover sold only 15-17 vehicles in the island while in 2007 the number rose only to 20. Now the company is selling over 200 vehicles for a year.”
Data shows the islands high income earners have seen a rapid growth in their income in the past few years with the top 10 percent of the country earning 66,500 rupees in 2006/7 to 125,000 by 2012.
Sri Lanka’s President in a recent statement said that the government expects to increase per capita income to 6000 US dollars, within next five years.
Fernando says interest rates have a big part to play in the rise in demand.
“Interest rates have a huge part to play when it comes to demand in vehicles as most people borrow and buy,”
“A cut in interest rates sees a rise in demand across the board from lower ranges vehicles to upper range,”
“And there is also the increase in disposable income – all this drives the market.”
He was speaking at the opening of their new showroom in Colombo 07.