Sri Lanka vehicles market in 2015 was the fastest in the World improving the volume by 180% due to huge incentives to leasing and electric vehicles and sales anticipation for incentive scheme termination in the 2016.
Country Outlook
After meeting with Sri Lankan Officials, the IMF has begun drawing up conditions for a loan facility that should provide some relief to the balance of payments crisis that Sri Lanka is currently undergoing. After the Central Bank stopped defending the rupee last September, the currency has depreciated and capital outflows have ensued, putting the country in a difficult monetary position. The IMF will likely include stipulations regarding government finances, expanding the tax base while cutting costs.
Sri Lanka‘s strategic location has garnered attention from regional super powers India and China, which will likely fund major projects going forward as they vie for influence in the country. FocusEconomics Consensus Forecasts panelists project that Sri Lanka’s economy will grow 6.0% in 2016, which is down 0.1 percentage points from last month’s forecast. The panel sees the economy growing 6.2% in 2017.
Market Outlook
The last report from F2M on Sri Lanka was in mid 2014 when we affirmed the market was on a “roller coaster”. Almost two years later, finally having the opportunity to share data we got from the market, we can re-affirm the market status.
Indeed, in the 2014 a drastic change on government policy toward the automotive sector changed again the trend and after the deep fall suffered between 2012 and 2013 the market boomed in the 2014 and – further more – 2015.
The last two years policy was totally in favor of “green vehicles” with sustain the import of hybrid or electric vehicles that pushed market up. During the second half of 2015, it was anticipated the introduction of new duties, expected from 2016, with the effect to further push up the vehicles registration, mainly from renting and leasing companies aiming to protect their stock from new taxes.
The consequently was a huge level of new vehicles registrations during the second half of the 2015 with the market boomed over the 100.000 units, from the 38.780 scored in the full year 2014.
Sri Lanka was the fastest growing market world-wide in the 2015, but in the current year the market is expected to fall down at 40-50.000.
According to data release by the Ceylon Motor Traders Association, the market leader was Maruti with over 40.000 sales and 39% of market share with the Alto as best-selling model. Behind, Toyota was pushed in second place by Aqua and Prius sales with market share raised at 22%. Third was Suzuki (imported by Japan) with 12.3% of share, few units better than Honda.
Research, Consulting, Data & Forecast Store
F2M covers intensively this market with several products developed to help any investigation required.
Market Researches in PDF are immediately available for download with study on the market since 2005 and with forecast up to the 2020.
Auto Data in EXCEL are immediately downloadable with annual sales volume, split by month, for all brands and all models distributed in the market. This year data are released year to date, but you will receive a monthly update until the year-end.
All these and more within our Sri Lanka Store
