Vehicle registrations slightly recover in December

• Caused by shifting of registrations from Nov. to Dec. and not by an uptick in sales
• January registrations expected to slump; govt. to continue with personal motor vehicle import ban 

Sri Lanka’s vehicle registrations recorded a slight recovery in December 2020, compared to the previous month, as the Motor Traffic Department reopened in the month, following its closure in November, with the outbreak of the second wave of COVID-19 in the country.

In December, the total vehicle registrations recorded 4,407 units, up from 2,868 units in November, however still down significantly compared to 25,291 units one year ago, as the government continues to maintain restrictions on importation of personal vehicles, the data compiled by JB Securities, a Colombo-based equity brokerage and research house, showed.

“The industry sources confirm that this is not an indication of an uptick in sales but due to the shifting of registrations from the month of November to December. 

The Registrar of Motor Vehicles was closed during a period in November, on account of the social distancing measures taken due to COVID-19,” JB Securities Managing Director Murtaza Jafferjee said.

He expects the vehicle registrations to fall further to “virtually nil” levels in January.

Motorcar registrations improved to 206 units in December, compared to 119 units in November but sharply down from 2,057 units a year ago.

Similarly, registrations of SUV and crossovers jumped to 128 units in December, compared to 78 units in November, still significantly down from 650 units a year ago. Jafferjee noted that locally assembled Zotye cars of Ideal Motors recorded registrations of 48 units and DFSK SUVs of United Motors recorded 55 units in the months. 
Meanwhile, registrations of most commercial vehicle categories also recovered in December from continuous slumps seen in October and November. 

In particular, large tractors recorded 862 registrations in December, significantly up from 285 units in November and 228 a year ago.

“There are no import restrictions on agriculture equipment and it’s a seasonal product, which explains the large jump in volumes,” Jafferjee noted.

The commercial vehicle category also had the highest average financing share of 74 percent in the month. Meanwhile, the three-wheeler registrations improved to 20 units in December, from 13 units in November but still sharply down from 882 units a year ago. 

The registration of two-wheelers also rose to 2,178 units in the month, from 1,766 units in November and was still sharply down from 19,432 registrations a year ago. 

Since total vehicle registrations reached the pre-pandemic levels of 32,123 units in June last year, driven by pent-up demand, Sri Lanka’s vehicle registrations continued to slump, due to the import restrictions on personal vehicle imports.

The government has announced plans to continue with the current import restrictions on personal vehicles during this year.