United Motors Lanka makes strategic shift to tap social status segment

United Motors Lanka Plc (UML) is making a strategic turn to tap the social status segment looking for a vehicle of 1300cc and above with 1.2 or 1.3 litre petrol engine at an affordable price following the tax increase on motor vehicles, a top official of the company said.

Chanaka Yatawara, UML’s Chief Executive Officer/ Executive Director told the Business Times that company executives, young businessmen and senior government officials and youth of elite families are used to this type of vehicles.

United Motors has to make a paradigm shift from concentrating on 1000 cc vehicles since its clientele is adopting a wait and see attitude as a state import duty hike has sent prices of smaller cars (below 1000 cubic centimeter engine capacity) like the Indian-made Maruti Alto up putting them beyond the reach of people with modest incomes, he said.

Mr. Yatawara said that under this plan the UML has launched the Mitsubishi Mirage, a stylish five-door hatchback, aimed primarily to cater to the present times of increased demand by local motor vehicle owners, for superior fuel efficiency and eco-friendliness.

The company has so far received orders for 10 units one week after the launch of the vehicle, he added.

He said that the debut of the Mirage in Sri Lanka was timely. “With top-class fuel efficiency among gasoline vehicles of 21 kilometers per litre, depending on driving style and conditions of course, low carbon emission as well as its trendy sporty style, we expect that this model will have huge demand.”

Part of the secret of such high fuel efficiency is the Mirage’s aerodynamic styling and the optimization of the body structure which uses extensively light but high tensile steel.

The Mirage is the latest Mitsubishi badged vehicles that will be sold by United Motors Lanka Ltd.This model with a new 3 cylinder 1.2 litre unit petrol engine, electronic power steering and catering to the growing demand of compact, simple and fuel efficient cars will no doubt have record sales in the local market, he said.