Record growth in vehicle imports in 2010

The value of vehicle imports recorded an unprecedented growth of 215 percent increasing from Rs 37 billion in 2009 to Rs 117 billion in 2010, the Ceylon Chamber of Commerce said.

The CCC analysis says India continues to dominate the Sri Lankan vehicle import market with a share of over 50 percent followed by Japan accounting for 30 percent.

Vehicle imports and registrations have seen a marked rise in 2010 due to the reduction in import taxes. A park full of vehicles in Colombo. Picture by Sumanachandra Ariyawansa

The vehicle import market is experiencing rapid growth following the revision of import duty structure.

The demand for small vehicles is robust. In terms of quantity imported motorcycles and auto trishaws surpass all other types of vehicles. Each year Sri Lanka imports over 100,000 motorcycles (of engine capacity 50 cc - 250 cc).

In 2010 the number of motorcycles imported show exceptional growth of 97 percent and for the first time the number imported exceeded 200,000. Sri Lanka imports nearly 40,000 auto trishaws each year, but in 2010 the numbers grew by 194 percent with import of a record number of over 80,000 auto trishaws (petrol).

There is an increase in demand for diesel auto trishaws in 2010 as well which recorded a phenomenal growth of 427 percent, starting of course from a low base of over 1,000 trishaws in 2009 to over 7,000 in 2010, analysis said.

Small passenger cars (of engine capacity less than 1000 cc) are also in big demand. The number imported in 2010 exceeded 12,000.

The demand for small vehicles for the transport of goods (g.v.w. below five tonnes) is also on the rise and in 2010 recorded a growth rate of 480 percent.

Reflecting the rapid growth in the agriculture sector, the agriculture tractors imported in 2010 recorded a growth of 152 percent.

India continues to dominate the market for small vehicles. Japan still retains its position when it comes to vehicles with higher engine capacity.

For example Japan accounts for over 80 percent of the vehicle market for passenger vehicles with an engine capacity between 1000 to 1500 cc.

However, South Korea has overtaken Japan in supplying passenger vehicles with an engine capacity between 1500 cc to 2000 cc in 2010 accounting for over 60 percent of imports.