IIFL Institutional Equities, a part of the IIFL Group, one of the leading players in the Indian financial services space, in a recent report on Auto said that, Sri Lanka (SL) has once again raised import duty on select vehicle segments with effect from November 2012.
According to IIFL Institutional Equities, Recall that SL had increased import duty on vehicles sharply in April 2012. The recent duty increase will result in an estimated 4% price increase for three-wheelers (3W), 10-15% price increase for trucks and 10-20% price increase for low-end cars.
Duty has been reduced in case of single-cab pickups, which should result in a 10% price cut. Among Indian auto companies, we see highest negative impact for Ashok Leyland and Bajaj Auto, the brokerage added.
The report was published by IIFL’s Institutional Equities Research desk.