The import of complete electric bikes should be restricted to safeguard the local electric bike manufacturing sector, said Chairman of KD Rise Electrical Motors (the only homegrown electric scooter manufacturer in the country), Dammika Perera.
He said that it is vital to impose certain restrictions on complete electric bike imports to protect the local electric bike manufacturing sector, which can easily be developed to strengthen the economy.
Perera said that permission has been granted to import complete electrical motorbikes through Gazette No. 12, dated August 23, 2022.
There are several small scale producers who produce quality components for motorcycles and they too are badly affected with the tax concession granted for imported electric bikes, he said.
Perera said that local value addition by the company is over 50 percent, including chassis, wire harness, footrest. However, when they increase local value, the cost of the spare parts also increases dramatically as the company has to pay higher taxes for the import of spare parts and raw materials. Considering all these circumstances it is wonder why complete electric bikes are being permitted to be imported at lower duties? he queried.
“If the Government wishes to protect and encourage local manufacturers it could increase the import duty on complete bikes,” he said.
The environmental risk concerns associated with the low-quality lead-acid batteries used in complete bikes, is not negligible. It is imperative to acknowledge that multiple countries have imposed import restrictions on such batteries. Therefore, the Government can recommend applying for an environmental security bond from complete bike importers which would encourage local consumers.
Local electric bike and spare part manufacturers call on the authorities to look into the complete electric bike importers framework and impose certain restrictions on imports as local bike manufacturers have capacity to meet market demand.
