Vehicle registrations record strong rebound in January

• Jan. vehicle registrations highest since March 2019
• Likely due to tax cuts and surge in biz confidence 

Sri Lanka’s vehicle registrations in January have shown a strong rebound across the board from the previous months, recording the highest number of total registrations since March 2019, possibly due to the resurgence in consumer and business confidence and recent tax cuts.

According to the registration data compiled by JB Securities, total car registrations recorded 2,536 units in January, up from 2,057 units in December 2019 but down from 3,147 units 12 months ago.

“Vehicle registrations in January across the board have shown a strong rebound from the previous months. One swallow does not a summer make but is this a sign of green shoots of an economic revival? 

The recent policy interventions both in terms of fiscal policy (taxation) or capital moratoriums did not target vehicle registrations hence the surge in demand could be due to a rebound in consumer and business confidence and second order effects of the tax cuts,” JB Securities Managing Director Murtaza Jafferjee said in his commentary. 

New car registrations recorded 349 units in January, up from 244 units in December 2019 but down from 429 units 12 months ago. Suzuki claimed a 30.7 percent share, followed by Perodua with an 11.7 percent share.

Pre-owned car registrations recorded 2,187 units, 21 percent up from 1,813 units recorded the previous month but significantly down from 2,718 units recorded 12 months ago. Toyota dominates this category with a 70.6 percent share.

Premium brand car registrations recorded 155 units in January, significantly up from 101 units the previous month and 113 units 12 months ago. 

Electric car registrations recorded three units in January like the previous month but down from four units 12 months ago. There was one brand-new Jaguar and two pre-owned BMWs.
Hybrid vehicle registrations recorded 320 units in January, marginally up from 317 units the previous month but significantly down from 1,232 units 12 months ago. 

Three-wheeler registrations recorded 1,612 units in January, almost double the 882 units recorded the previous month but marginally down from 1,706 units recorded 12 months ago. Bajaj had absolute domination of the segment, accounting for a 97.8 percent share.

The motorcycle category recorded 8,206 units in January, 30 percent higher than 6,375 units recorded the previous month but down from 9,824 units recorded 12 months ago. Bajaj is the category leader with a 36.8 percent share, followed by Yamaha with a 30.3 percent share.

The scooter category recorded 18,287 units in January (highest number in 18 months), 40 percent higher than 13,029 units recorded in the previous month and marginally up from 18,206 units recorded 12 months ago. Honda was the category leader with a 52.6 percent share, followed by TVS with a 19.7 percent share.