(Corrects motor car registration figure)
Mar 01, 2017 (LBO) – Motor car registrations in Sri Lanka fell 11 percent to 3,101 in January, from 3,487 in December, with the implementation of a budget proposal to restrict credit for car purchases, JB Securities said in a research note.
Total vehicle registrations fell to 42,443 in January from 45,218 in December, although the number is up from a low of 32,006 in January last year.
Two-wheelers accounted for a bulk of these vehicle registrations in January at 31,158 units.
Measures to control credit have lowered total registrations from a peak of 64,020 in September of 2015, showing purchases are strongly amenable to credit policies.
“Implementation of the budget proposal to restrict credit to new cars (50% LTV) and three wheelers (25% LTV) appears to be the primary factor accounting for a plunge in registrations,” the note said, adding the full impact of the directive will only be felt this month.
Motor cars saw a notable drop in Suzuki Alto and Renault Kwid registrations, and a surge in Hyundai Eon cars, up 100 percent. Premium motor cars saw an increase to 69 units in January from 47 in December.
Three wheeler registrations came down by nearly 50 percent, from 6,057 units in December to 3,327 units in January, with Bajaj losing market share to TVS.
Mini trucks have come down by 20 percent, month on month, while buses have gone up by 36 percent from 242 in December to 329 units in January.