Motor vehicle registrations continue to tumble in Jan. after falling to record low in 2021

• Falls to record low of 33,850 units in 2021 with 83.3 percent decline in 2020
• All categories except for goods transport and land vehicles registrations plunge between 50% -95% 

Amid heightened foreign exchange crisis and import controls, Sri Lanka’s motor vehicle registrations tumbled in January 2022 with minuscule registrations after new motor vehicle registrations falling to a record low of 33,850 units in 2021 with 83.3 percent decline in 2020.

A total of 1,718 vehicle units were registered during January this year, down from 2,134 units in December last year, and from 3,256 units registered a year ago, according to the vehicle registration data compiled by Colombo-based equity brokerage and research house J B Securities.

Releasing its first monthly vehicle registration report after several months, J B Securities Managing Director Murtaza Jafferjee remarked monthly registrations remained minuscule.

In 2021, apart from goods transport vehicles (lorries, other goods transport vehicles and special purpose vehicles) and land vehicles (tractors, hand tractors and other land vehicles) all other categories fell in the range of over 50 percent to 95 percent. 

In particular, two-wheeler registrations fell by 94.7 percent YoY to 8,011 units while motor car registrations fell by 83.4 percent to 3, 495 units due to import controls on passenger vehicles.

However, goods transport vehicles and land vehicles which are not subjected to import controls jumped by 12.5 percent YoY and 77.8 percent YoY to 4,432 units and 14,764 units respectively.

“There are no import restrictions on tractors. Demand has been at elevated levels in most months exceeding previous numbers – the farming communities’ motive to invest in them (Rs.3 mn) in addition to them being a production asset is a real asset now that other alternatives like new 3-wheelers and/or 2-wheelers are not an option,” J B Securities noted.

Meanwhile, SUV crossovers recorded 176 registrations in January up from 100 units in the previous month, but down from 199 units registered a year ago. Mahindra accounted for 118 units of it through its KUV 100 model – a small cross over vehicle assembled locally by Ideal Motors. 

Further, 28 Toyota Land Cruiser jeeps were also registered in the month, which were a gift from the government of Japan to Sri Lanka Police.

The two-wheeler registrations were marginally down to 261 units in January  from 266 units the previous month and significantly down from 1,228 units from a year ago. Demak, a locally assembled bike recorded 61 units.
At the same time, pick-up truck registrations fell to a mere 5 units in the month from 106 units in December last year comprising of 64 Toyota Hilux and 39 Mitsubishi L200s, J B Securities said.

It noted that pickup registrations in December were also part of a donation from the government of Japan that also included bowsers and ambulances.

Hand tractors recorded 123 units in January, which was lower than 260 units in the previous month. However, it was up from 94 units a year ago. Large tractors recorded 373 units in the month down from 598 units in the previous months and 461 units registered 12 months ago. 

In addition, bus registration increased to 63 units in January up from 19 units in December last year and 21 units a year ago. Lanka Ashok Leyland accounted for 20 of these units in the month.