Vehicle registrations set to surpass 2011 record

by Lalin Fernandopulle

Vehicle registrations across all sectors increased 93 percent to 344,570 from January to July this year compared to 178,439 registered in the corresponding period last year, motor traders said.

Past Chairman, Ceylon Motor Traders Association (CMTA), Tilak Gunasekera said growth figures this year will outdo 2011’s registration of 525,421 vehicles.

“We are confident that vehicle registrations will reach around 6,000 units by the end of this year.

He said the low import duty, interest rates, fuel cost and concessionary duty permits are the main reasons for the surge in vehicle registrations this year. Before 2010, Vehicle import taxes were exorbitantly high compared to many countries in the region and as a result registrations dropped drastically hampering the growth of the industry,” he said.

Merchants said that a consistent regulatory and tariff policy is vital for the vehicle industry which is often used by politicians to gain political mileage by slashing the tariff before elections and jacking it up at other times.The vehicle import duty structure has been favourable to a great extent this year except for the increase in duty on hybrid vehicles which is not a good move considering the government’s aim to minimise pollution and save on fuel.

Motorcycle imports rose 89 percent to 30,000 units a month from January to July this year compared to 16,000 units imported a month in the corresponding period last year. Motor cars recorded a 295 percent growth with 6,800 units being imported a month this year compared to 2,300 units imported last year.

Three-wheeler imports rose 72 percent to 10,500 a month this year compared to 6,100 units last year.

Registration of buses from January to July this year increased from 1,100 units last year to 2,100 units this year.

Motor lorry registrations recorded a 63 percent growth this year to 3,100 units compared to 2,000 units last year.

Dual-purpose vehicles rose 453 percent to 7,030 units this year compared to 1,550 units in 2014. Industry experts said the Government may increase the vehicle import duty in the 2016 Budget to slash imports and maintain sufficient foreign reserves.

They also said import restrictions are essential with tariffs that are not harmful to the industry.

Gunasekera said attention should be paid to the socio-environment to minimise pollution and ensure the safety of commuters and pedestrians by banning unroadworthy vehicles. Experts said a feasible tariff structure that will create a win-win situtation for the importers and the government and the setting up of more service centres across the country will help provide more employment opportunities for youth.