Sri Lanka New Vehicle Registrations up 42pct in 2011. New Vehicle Market to Grow by 10 to 15pct in 2012

26th February 2012, www.sundayobserver.lk, By Lalin Fernandopulle

The brand new vehicle market will grow by around 10-15 percent this year said Ceylon Motor Traders Association Chairman and Sathosa Motors PLC Executive Director, Tilak Gunasekera.

He said that the new vehicle registrations increased by 42 percent last year and added that the number of vehicles registered in 2011 was 526,421 compared to 369,243 in 2010.

Global car sales recorded a marked growth last year recovering from a lull when fears over prospects for Western Europe and product shortages from Japanese automakers prompted buyers to move to the sidelines, reports stated.

Global volumes rose two percent year-on-year in December led by a five percent month-on-month rebound in Asia. Purchases in the United States also advanced nine percent y/y in December, climbing to an annualized 13.6 million units from an average of 13.4 million during the previous three months.

Gunasekera said that global vehicle sales recorded a substantial growth last year compared to the previous year. The number of units sold in 2010 was 74.3 million while in 2011 it was 77.5 million which is a 4.3 percent increase. There is a good and steady growth in the global vehicle market.

With regard to the oil price hike he said the price increase will affect the transportation cost and thereby it will have a cascading effect on the economy such as food, passenger transportation cost, gas and essential items. Global oil prices continue their upward spiral, climbing to their highest levels in nine months over Iran’s warning that it may cut off oil exports to more European countries.

On Tuesday, oil prices reached their highest levels since May as Benchmark crude rose by $2.65, or 2.6 percent, to end the day at $106.25 per barrel on the New York Mercantile Exchange, marking the highest price of oil since May 4, 2011.Meanwhile, the price of Brent crude climbed by $1.61 to close at $121.66 in London.

Motor cycles, three-wheelers and cars are the main categories of vehicles imported by Sri Lanka in large volumes.

* Motor Cycles

The number of motor cycles registered in 2010 was 204,811. In 2011 it increased to 232,120, a 13 percent growth compared to 2010

* Trishaws (Three-wheelers)

The number of trishaws registered in 2010 was 83,114 and in 2011 it was 138,436 recording a 66 percent growth.

* Motor Cars

The number of motor cars registered in 2010 was 23,072 and in 2011 it was 57,887, a 161 percent growth.

Related Info :

• Sri Lanka Motor Sector Profitability Drops but Rising income & Economic Growth Keeps Demand High

• Sri Lanka Increases Taxes on Imported Vehicles