SL vehicle market stagnates amidst 2018 budget speculation
View(s):Sri Lanka’s vehicle market seems to be on a wait-and watch expecting tariff reductions in the upcoming budget, an equities research house said in its data analysis released recently.
Car registrations fell to 2,472 units in September from 3,372 units in August, amidst expectations of import tax reduction in the 2018 budget. Vehicle importers are expecting discounts to sell cars, JB Securities disclosed.
Brand new cars fell from 1,279 units in August to 927 units in September, Motor Traffic Department (MTD) data showed.
Hyundai and Tata (Nano) recorded a significant drop and Datsun continued their growth from their “Redi Go” car, the analytical report revealed adding that medium car segment share improved from 3 to 4 per cent.
Used cars sales declined by 26 per cent MoM (month on month) and increased 26.6 per cent YoY (year on year). Toyota and Suzuki observed a decline in used car registrations. Small car segment share increased to 51 per cent from 49.
Overall brand-new SUV’s declined by 45 per cent MoM and 48 per cent YoY, while pre-owned SUV’s decreased by 5 per cent MoM but increased by 21 per cent YoY.
Toyota Prado and Audi Q7 observed a drop in September while Honda Vezel witnessed a slight increase from August. Brand new hybrids declined by 33 percent MoM, pre-owned hybrids also dropped by 25 per cent MoM.
Van sales improved by 25 per cent MoM but declined by 28 per cent YoY. Mini vans dropped from 713 to 520 registrations. 3-wheelers recorded a drop of 7 per cent MoM and a decline of 56 per cent YoY.