Vehicle registration records marginal growth

Vehicle registrations during the first two months of this year recorded a marginal growth compared to last year according to motor traders.

The new and reconditioned motor car and heavy duty vehicle sales posted a three percent growth during January to February this year compared to the corresponding period last year.

The growth in vehicle sales has been marginal due to the high duty on many categories of vehicles which resulted in a drop in sales. The sale of many categories of reconditioned vehicles have outdone new vehicles.

The sale of dual purpose new vehicles dropped 18 percent to 139 units from 169 last year during the first two months of this year.

Dual purpose reconditioned vehicle sales slumped 50 percent to 333 from 668 last year. The number of new motor lorries declined 39 percent to 440 units from 721 last year.

The number of reconditioned motor lorries grew four percent to 139 from 134 last year. The sale of new buses increased 0.4 percent this year to 266 units from 265 last year. While reconditioned buses declined 34 percent to 23 units this year from 35 last year.

Reconditioned motor cycles recorded the highest growth during the first two months of this year with a 266 percent increase to 963 units from 263 last year. The number of new motor cycles increased by 13 percent to 29,015 this year from 25,590 last year. Reconditioned motor cars grew 98 percent to 2,482 from 1,256 last year. New vehicles of this segment rose 32 percent to 1,539 from 1,170 last year.

Ceylon Motor Traders Association, President Tilak Gunasekera said that the 10 percent tax on CIF value charged on any vehicle imported on permits and transferred at the time of registration is an additional tax and is not a healthy move.