Motor car registrations down sharply from Sept peak: JB Securities

July 05, 2016 (LBO) - Motor car registrations in Sri Lanka recorded 3,657 units in May, slightly down from 3,664 units in April, but significantly lower than a peak 14,544 registrations last September, data from JB Securities shows Premium cars, three wheelers, two wheelers and mini trucks, however, showed an increase in May over April. Brand new car registration segment recorded 1,766 units in May significantly down from 3,228 units recorded 12 months ago. Maruti recorded 1,037 units in May, a significant drop from 2,539 units 12 months ago. Micro recorded 142 units down from 175 units the previous month and Hyundai recorded 168 units gaining on 126 units recorded the previous month. The slight dip in small car registrations in May could be attributable to the April numbers being boosted by the clearing up of the back log emanating from the RMV’s go slow in Feb and March. Preowned car registrations recorded 1,891 units in May marginally down from 1,910 units a month ago and significantly down from 2,790 units recorded 12 month ago. Toyota recorded 839 units in May marginally up from 800 units in Apr and Suzuki recorded 608 units in the month marginally up from 623 units the previous month. Honda recorded 319 units in the month marginally down from 623 units the previous month. Financing share was 66.9% marginally down from 67.0% the previous month. Premium brand cars recorded 82 units in May significantly higher than 46 units the previous month and slightly lower than 93 units 12 months ago. Mercedes recorded 9 new units (C-class 4, E-class 2 and S-class 2) and 14 pre-owned units (C-class 8 units, E-class 4 units, S-class 1 units). BMW recorded 5 new units (5-series 1, 3-series 3) and 7 preowned units. Audi recorded 38 brand new cars – a majority of these cars plus a quantum of SUVs were acquired by Drumin Transporters who are providing premium cars for the Cinnammon city hotels. Electric cars recorded 85 units in May similar to the 85 units recorded the previous months but significantly down from 361 units recorded 12 months ago when the duty was only 5%. Nissan Leaf accounted for 80 of these units up from 74 units the previous month. Amongst the other category there is 1 Mercedes Benz B class, 1 BMW i3, 2 Mitsubishi and 1 E Golf. The tariffs have been significantly increased, a further increase happened a few weeks ago so expect further declines in registrations.

SUV registrations recorded 752 units in May slightly up from 709 units the previous month and up from 695 units 12 months ago. Nissan continued to maintain its leadership recording 328 units (Hybrid X trail 314), Mitsubishi recorded 95 units (Outlander hybrid 61, Montero 31), Toyota recorded 96 units (Prado 81, Harrier 3) and Honda 73 units (Vezel 70). DFSK Glory 330 recorded 49 units dropping from 100 units the previous month. This vehicle is assembled locally from semi knock down kits thus benefits from a significantly lower tariff which permits a high option vehicle to be sold for Rs 3.2 million. Audi recorded 35 units in the month up from a mere 3 units previously, the breakup was 25 Q3, 5 Q5 and 8 Q7 – most of the Q3’s were bought by Drumin Transporters for the Cinnamon City Hotels. Financing share was 59.0%. Hybrid registrations recorded 2,256 units in May marginally down from 2,259 units the previous month and 2,709 units 12 months ago. Suzuki Wagon R recorded 569 units down from 599 units but significantly up from 308 units 12 months ago. Toyota cars recorded 793 units up from 752 units recorded the previous month but significantly down from 1,237 units 12 months ago – Aqua accounted for 310 units, Axio for 278 units followed by Prius accounting for 196 units. Mercedes Benz accounted for 13 hybrid units. In the SUV segment Nissan X trail hybrids accounted for 314 units. Van registrations recorded 319 units in May slightly up from 301 units the previous month and significantly down from 914 units 12 months ago. Toyota recorded 104 units in May down from 122 units the previous month and significantly down from 401 units 12 months ago and Suzuki recorded 51 units marginally down from 53 units the previous month but significantly down from 310 units 12 months ago. Financing share was 71.5%. 3-wheeler registrations bounced back recording 5,732 units in May up from 4,206 units the previous month but significantly down from 10,995 units 12-month ago. Bajaj claimed a segment share of 89.2% followed by TVS with 6.2% share and Piaggio with 4.5%. Financing share was 85.6%. 2-wheeler registrations exploded recording 32,244 units in May significantly up from 24,188 units the previous month and 25,580 units 12 months ago. Bajaj was dethroned by Honda who claimed market leadership recording a segment share of 29.6% followed by Bajaj with 26.3%, Hero in third place with 21.8% and Yamaha in fourth with 10.5% share. The 2 wheeler market is now evenly divided amongst all the players in contrast to earlier times when Bajaj was dominant in this category.

Scooters account for 48% of the market, Bajaj has no scooter offering so although the local agent DPMC has a wide reach the absence of an offering is a drag on their performance. Financing share was 60.5%. Pickup truck registrations recorded 254 units in May up from 236 units the previous month but significantly down from 350 units 12 months ago. Tata is the market leader with 58.7% followed by Toyota with 18.5% and Mahindra with 7.9%. Financing share was 71.7%. Mini truck (payload < 1 MT) registrations were 1,121 units in May significantly up from 792 units in April but down from 1,315 units recorded 12 months ago. Tata the market leader recorded a share of 59.2% followed by Mahindra with 34.3% regaining its share after lacklustre performance in the past few months. Financing share was a high 92.3%. Lite truck (payload < 2 MT) registrations recorded 570 units in May up from 539 units the previous month and 665 units 12 months ago. Mahindra is the market leader claiming an almost dominant share of 76.7% mainly through its Bolero Maxi Truck. Financing share was 89.5%. Medium trucks (payload < 5 MT) registrations were 119 units in May slightly up from 109 units the previous month and 358 units 12 months ago. Isuzu is the market leader with 22.7% followed by Tata with 16.0% and Mitsubishi with 13.4%. Financing share was a high 81.5%. Heavy trucks (payload > 5 MT) registrations were 76 units in May down from 81 units the previous month and significantly down from 207 units 12 months ago. Tata reclaimed market leadership recording a segment share of 55.3% followed by Ashok Leyland with 31.6%. Financing share was 82.9%. Buses recorded 163 units in May up from 145 units the previous month but down from 226 units recorded 12 months ago. Ashok Leyland is the market leader with a share of 41.1%. Financing share was 85.9%. Vehicle-Summary-May-2016