Oct 17, 2020 (LBO)– With the constraint on vehicle imports, First Capital Research (FCR) anticipates that Sri Lanka’s car registrations might down to a 17-year low in 2020.
“We anticipate car registrations in 2020E to record half of the last year quantity while likewise being the most affordable figure because 2003 and being suppressed in 2021 too,” the FCR stated.
“New Car registrations have currently fallen to a years low in 1H2020.”
However, the import of three-wheelers and motorbikes have suffered a dipping trend given that 2015 even prior to the import ban amidst the previous tax hikes and LTV regulations.Government to prohibit automobile
imports for a minimum of a year to make it through a possible forex crisis as average lorry imports make up nearly USD 800Mn or 4 percent of total imports for the previous 13 years.Registered lorry prices have actually shot up while unregistered lorries are limited due to import limitations, leading to lower transactions and lower price as a result, competition is intensifying in the Leasing section in NBFI sector due to attractive rates by Banks. Source