- Effects of 70% LTV rule, higher tariff felt
- Maruti registrations slump
- Registration of Rolls Royce Ghost recorded
- Three-wheeler registration hits 5-year low
Sri Lanka’s motor car registrations crashed across the board in January amid the new LTV rules on vehicle financing and significantly higher increase in import tariffs.
According to the data compiled by Colombo-based research and stock broking house JB Securities, Motor car registrations recorded 2,888 units in January, significantly down from 7,181 units a month ago and 4,940 units 12 months ago.
Brand new segment registrations recorded 1,023 units in Jan down 80 percent from 5,020 units recorded in Dec and 48 percent from 1,939 units 12 months ago.
Maruti crashed to a mere 253 units, from 3,883 units a month ago, the highest figure over the last 12 months of 8,029 units in September and 1,100 units 12 months ago. Micro Panda recorded 414 units, down from 523 units in December.Pre-owned car segment registrations recorded 1,865 units in January, down from 2,161 units a month ago and significantly down from 3,072 units 12 month ago.
Toyota recorded 709 units in January marginally down from 749 units in December and Suzuki recorded 673 units down from 788 units in January.
Financing share was 61.7 percent, down from the high 60s experienced in the last few months’ indicative of lower financing going into car purchases.
Premium brands recorded 52 units in January (lowest in the past 12 months), lower than 68 units the previous months and 102 units 12 months ago.
Mercedes Benz recorded 19 new units (C-class 7, E-class 11 and S-class 1) and 17 pre-owned units (C-class 6, E-class 8).
BMW recorded 5 new units (3- series 1, 5-series 2) and 3 pre-owned units.
“Records indicate the registration of a Rolls Royce Ghost – it seems like it has been brought down by the BMW agent Prestige Automobile,” JB Securities said.
Electric cars recorded 173 units in Jan down from 242 units the previous months but up from a mere 15 units 12 months ago.
“Momentum is clearly waning after tariffs were significantly revised from 5 percent to 50 percent,” JB Securities said.
In September 2015, electric car registrations peaked at 506.
However JB Securities expects electric car sales to pick up in the near future as most of the Toyota hybrid models are selling at a Rs.1 million price premium compared to full electric Nissan leaf, which is selling at around Rs.4 million.
Three Tesla Model S’s have also been registered putting the total on the roads at around 11.
SUV registrations recorded 559 units in January down from 605 units the previous month and significantly down from 1,591 units 12 months ago.
Nissan maintained its leadership recording 170 units (Hybrid X Trail 170), Mitsubishi with113 units (Outlander 78, Montero 29), Toyota with 120 units (Prado 82, Harrier 7), Honda with 55 units (Vezel 53).
Financing share was 58.7 percent in line with the level recorded during the past 12 months.
Hybrid registrations recorded 1,934 units in January down from 2,224 units the previous month and 4,320 units 12 months ago.
Suzuki Wagon R recorded 663 units down from 776 units but significantly down from the record set in Sep of 1,638 units. Toyota cars recorded 625 units marginally down from 695 units recorded during the previous month but significantly down from the record set in September 2015 of 1,859 units.
Aqua volumes recorded 226 units in January, a 4-fold drop from the record set in September 2015 of 1,041.
However Toyota Axio volumes are holding up at around 311 units, although down from 510 units recorded in September 2015. Honda Fit also took a hammering dropping to a mere 90 units in January in comparison to 717 units in September.
Van registrations recorded 359 units in January, significantly down from 520 units the previous month and 46 percent of the units recorded 12 months ago.
Toyota recorded 153 units in January significantly down from the record set in September 2015 of 585 units and Suzuki recorded 87 units also significantly down from the record set in September of 585 units. Financing share was 73 percent.
Three-wheeler registrations crashed to 3,440 units in January significantly down from 10,494 units in December 2015 and 8,248 units 12-month ago.
“This is the lowest monthly registration recorded in the past 5.5 years – similar low points were 3,577 units in May 2012 after the precipitous depreciation of the currency and 3,731 units in November 2009.
“Three wheeler on road price has increased to Rs.600,000 due to tariffs increasing by Rs.100,000 – this along with the 70 percent LTV rule has increased the down payment to Rs.180,000 a sum too large for the marginal buyer. Financing share was 86 percent,” JB Securities said.
Motorcycle registrations recorded 21,287units in January down from 30,400 units the previous month but down from the election-fuelled record set 12-months ago of 29,156 units.
“All brands suffered from contraction in volumes in comparison to the previous month. Financing share was 57.6 percent, consistent with the previous months.”
Buses recorded 189 units in Jan down from 230 units the previous month and significantly down from the election-fuelled 672 units recorded 12 months ago.
Ashok Leyland is the market leader with a share of 44.4 percent. Financing share was 92.6 percent