Race leaders

January 23, (LBO) – Associated Motorways (AMW) has cornered 31 percent of Sri Lanka's brand new car market the budget agency Maruti winning 28 percent, Fitch Ratings Lanka said, awarding the firm a A (lka) rating with a stable outlook. "The rating reflects AMW's position as the country's leading distributor of new passenger automobiles, its dealership franchises for several well-established automobile manufacturers such as Nissan, Maruti and Suzuki and its comprehensive product range," Fitch Ratings said.

"Its financial profile is sound and is supported by the efficient management of its working capital."

Since 2002, the company has reported higher revenues and profits with its small budget vehicles racing ahead in a market where higher government levies kept larger cars behind.

AMW had increased its market share to 31 percent in the 2006 financial year from just 8 percent in 2003.

Though competition for budget cars is likely to increase, Fitch says AMW can maintain its leadership over the short to medium term because its brands are now well established in the market.

It is also working with several leading banks and financial institutions to give finance customers, with around 60 percent of its unit sales com