Oct 17, 2018 (LBO) – Sri Lanka’s motor car registrations dropped to 4,990 units in September 2018 from 7,003 in the previous month following hike in taxes imposed by the government earlier this year, data compiled by JB Securities equities research shows.
Total registrations were down to 34,293 units from 43,190 in the month of August.
According to the report, the year 2017 saw a rise in import expenditure despite a fall in import volume by 11 percent with yearly new registrations also declining by 9 percent, the research firm said.
“There are yet a lot of inventory of unsold cars in yards or on the water thus one will not see a dramatic fall in registrations in the next 3-4 months until it is sold,”
“There are noticeable volumes in premium small engine cars due to a relatively lower rate of excise duty – these are entry level models.”
Across almost all categories there is a sizeable slowdown in registrations including two wheelers which are down 17 percent.
The category leader in small cars the Suzuki Wagon R hybrid registrations are down 31 percent MoM in comparison to August.
The measures to slowdown vehicle imports 3-4 months ago are finally biting which are evidenced in the registration figures, JB Securities adds.