Increase in motor car registrations to 3,221 units this July
A research note prepared by JB Securities states that in July 2017 the country’s registration of motor cars had risen to 3,221 units from its June 2017 figure of 2,802 units.
The note stated that “… overall, brand new motor cars have increased by 17% month-on-month. Micro observed growth in the “Panda” car, Renault observed growth in the “KWID” and Tata observed the most significant growth in their “Nano Twist XTA.”
A 13.7% month-on-month increase was indicated in the number of pre-owned cars, with the numbers of Honda, Suzuki and Toyota cars being the most pre-owned registrations.
The note also revealed that “… brand new premium cars remained the same with Mercedes Benz leading the way with growth observed in the E-Class.”It was recorded that in July 2017 only 65 units of premium (luxury) car registrations took place as opposed to the June 2017 number of 94 registered units.
In June only 13 electric cars were registered but in July that number had gone up to 17 and of that 17, 13 units were of the Nissan Leaf brand of cars.
A 4.7% month-on-month reduction was seen in the number of registered three wheelers (tuk-tuks) with only 1,787 units being registered and the market share of Bajaj falling to 92.1% from its previous recorded 94.6%.
July 2017 also recorded a 10% month-on-month increase in 2-wheeler registrations with 30,226 registered units being recorded.
According to the note, “… 130cc segment share improved from 79.4% to 80.8%. Honda’s dominant market share increased from 36.5% to 38%. Scooters increased from 14,846 to 17,893 in July, led by growth in Honda.”
A considerable 55% increase was observed in the July registration of light trucks with a recorded 177 units being registered. Bus registrations also increased by 7.7% with a total of 205 units being registered.
With more Sri Lankans having access to disposable income, consumer patterns have already seen a dramatic change. More high value items like vehicles, technology etc. are being purchased by Sri Lankan consumers, with significant increase in vehicle purchases.
Many homes own multiple vehicles with many lower-middle class families owning at least one 3-wheeler and a 2-wheeler. Also, these same lower-middle class consumers are now moving towards purchases of cheaper model cars like the TATA Nano, Micro Panda etc.
This clearly indicates an opportunity for vehicle manufacturers or exporters to enter the Sri Lankan market as the demand for vehicles seems to be on a steady rise.
|Article Code :||VBS/AT/07092017/Z_1|