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Sri Lanka now taxes large hybrid vehicles at lower rates than small petrol cars. The larger cars are more fuel efficient, allowing users to drive a bigger car while spending less on fuel than they would otherwise have done for a similar-sized standard car.
Batteries that drive hybrids, which have nickel and lithium metals have to be recycled at a future date, to curb environmental damage.
Registrations of three wheelers were down 29 percent in January 2014 to 5,802 units.
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Motor cycle sales were up 17.1 percent to 16,402.
Meanwhile JB Stockbrokers said mini trucks of less than one tonne at 1,305 units was steady with India's Mahindra having a 48.
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8 percent share and Tata 49.7 percent other trucks were declining with sharp falls in the heaviest trucks.
Motor car registrations rose 35 percent to 1,949 in January 2014 from a year earlier, helped by the sale of 914 pre-owned Toyota vehicles (up from 352 a year earlier) and 338 (up from 202) Honda vehicles, an analysis by JB Stockbrokers shows