Downward trend in vehicle registrations

Authorities say that registration of new vehicles has shown a downward trend during the first six months of this year, in comparison with figures recorded during the same period last year.

According to the Registrar of Motor Vehicles, the total number of new registrations during the first half of 2009 is 91,021, and is considered to be 45,571 less than the recorded figures, during the same period last year.

A press release by the Government Information Department identifies new regulations imposed by the Central Bank regarding Letters Of Credit on vehicle imports, as one of the major factors for the decline.

As a result, the income generated through vehicle imports too, has shown a significant decline, during the same period.

The release identifies factors such as tax concessions given to State sector employees, decline in vehicle imports and prices, the steady increase of low cost vehicles imported from China and India as being behind the decline in overall turnover.

Also the decline of income generated through vehicle imports is considered as the major factor behind the slow growth of production tax earnings during the period of 2007 - 2008.

According to the authorities, the number of new registrations during 2008 has been 265,199.

The figures show that motorcycles has topped the list with 155,952 with Three-wheelers securing number two spot with 44,804 new registrations and motor cars being the third with 20,237.

In comparison, out of a total of 91,021new registrations during the first six months of 2009, motorcycles stands at 59,927 with 16,419 Three-wheelers being registered at the time along with 3,382 motor cars.

According to these figures, while motorcycle imports has shown an increase the number of motor cars imported has shown a steady decline.