- Tip about the lower probability of vehicle import that exceeds the opening of the vehicle import
While the government is preparing to resume the import of the vehicle later this year, one of the oldest car companies in Sri Lanka, United Motors Lanka (UML) PLC, has indicated that it has become less dependent on vehicle import due to the robust assembly activities.This development suggests a lower chance that the import of vehicle input vehicles exceeds and has reduced the pressure on currency this time.
CEO/ CEO of United Motors Group Chanaka Yatawara shared the optimism of the high opportunity for the vehicle market to be opened in this new financial year with the shareholders of the company in the last annual report.
“If and when this happens, we must be able to return to our normal functioning of the import and sale of important Japanese, Chinese and Malaysian brands that we represent.
“Although the market that opens the import will be very good for us, we have prepared ourselves to be less dependent on vehicle import by being more dependent on our collective operation, so that the sale of our existing products and services and courage in foreign marketsIs enlarged, “He went out.
Accordingly, Yatawara expects one of the best years for the car industry in the near future, supported by recent important financial trends.
“I think 2024/25 will be a much better year., And we do not expect any disruptions in the general activities.
The number of brand new vehicles imported if an industry was around 50,000 vehicles in
Year 2016/17;
Although the assembly company is allowed during the import ban, Yatawara pointed out that there had been several other political issues and challenges in recent years.
Unimo Enterprises Limited (UEL), a unit of UML has a license to collect vehicles.Eul collected and sold nearly 400 units in the course of FY.For a local problem with the supplier of components, the company had to incur costs for high financing, even during this year.
“Although having a product to sell under the import ban was an advantage, the structure of the inventory was done on different exchange rates.60 percent.
The company is planning to add three new vehicle brands to its production line for collecting different price points.
“This was what we could not do before because of the lack of vehicle brands on the right disk (RHD).At the beginning of 2024 we made significant progress and signed up for new suppliers for gasoline, diesel and EV RHD.We believe that several of these vehicles can be produced and sold in the second half of this year.quarter of the new year.In the meantime, the company has been successful in limiting most parallel importers and has received the better price obligations of the principal sum.
UML Records Rs.273 Mn Tab in 2023/2024 FY Ondanks Rs.356 Mn PBT
United Motors Lanka achieved a profit for tax (PBT) of RS.356 million in 2023/2024 FY, mainly from the operation after -sales, sale of Valvoline lubricant and other investments.
The other group companies that are more dependent on the sale of vehicles and construction, however, were poorly influenced with Unimo Enterprises LTD, including a loss of RS.494 million and UML -Hugt equipment that limits a loss of RS.321 million, whatresults in a loss of RS.273 million.
