Marked increase in vehicle imports

Record 150% growth in new registrations:

Sanjeevi JAYASURIYA

The demand for vehicles in Sri Lanka remains buoyant according to a report prepared by the Ceylon Chamber of Commerce (CCC) analyzing import statistics for 2011. The expenditure on import of vehicles and parts recorded a growth of 87% in 2011. The value of imports increased from Rs. 117 billion to Rs. 219 billion by 2011. The Ceylon Chamber analysis finds that the share of expenditure on importation of vehicles and parts as a percentage of total expenditure on imports of Sri Lanka has been increasing over the past decade. In 2011 it accounted for 10% of the total import bill compared to 8% in 2010.

India continues to be the number one supplier of vehicles and parts to Sri Lanka despite loss of market share in 2011 to 45% in terms of value compared to 51% in 2010. Japan has slightly gained market in 2011 accounting for 36% of the market compared to 33% in 2010. China at the third place has retained its market share at 5%. The total number of new vehicles registered stood at 525,421 for the year as per the Department of Motor Traffic. This is an increase of 32% compared to 2010.

The year 2011 has seen a record growth of 150% in new registrations of all types of motor cars and the number of cars registered for the year was 57,886 according to the Department of Motor Traffic.

One of the key findings of the CCC analysis is the rapid increase in demand for hybrid vehicles in Sri Lanka. The number of hybrid vehicles imported has recorded an unprecedented growth of 1200% in 2011 compared to last year despite the upward revision of taxes. This growth momentum is likely to continue with the increase in fuel prices. The number of vehicles imported in 2010 was only 438 and by 2011 the number has increased to 5927. Japan is the leading supplier of hybrid vehicles into Sri Lanka in almost all categories of vehicles except for cars of cylinder capacity exceeding 2000 cc, where Germany is the main supplier. According to CCC the high demand for small vehicles in Sri Lanka continues. Motor cars of less than 1000 cc capacity have recorded a growth of 222% in 2011. The introduction of Nano cars considered to be a major factor behind this record growth.

The number of petrol auto trishaws imported recorded an increase of 30% and the number of vehicles imported exceeded 100,000 in 2011. The demand for diesel auto trishaws is also slowly picking up, although the number still remains less than 20,000. The rate of growth of 104% recorded in 2011 is impressive. India accounts for 99% of trishaw imported into Sri Lanka.

The imported number of motorcycles between 50 cc and 250 cc recorded a growth of 15% in 2011. India continues to dominate the market accounting for over 95% of the market both in terms of quantity and value. Total number of new motorcycles of all categories registered in 2011 exceeded 250,000 according to Department of Motor Traffic and this represents a 24% increase compared to 2010.

Reflecting the buoyancy in the agriculture sector, the number of pedestrian controlled tractors imported has increased further in 2011 by 33%. The number of road tractors for semi trailers increased by 276% and the number of agriculture tractors imported recorded an increase of 67% in 2011. The total number of new tractors registered for 2011 was 20,073 and this is an increase of 16% compared to last year, the report said.