The demand for vehicles in Sri Lanka remains buoyant with the import of vehicles and parts recorded a growth of 87% while the value of imports rose to Rs. 219 billion by 2011 from Rs. 117 billion, according to the Ceylon Chamber of Commerce (CCC).
In a report analyzing import statistics for 2011, the CCC found that the share of expenditure on imports of vehicles and parts as a percentage of total expenditure on imports of Sri Lanka has been increasing over the past decade. In 2011 it accounted for 10% of the total import bill compared to 8% in 2010.
India was the number one supplier of vehicles and parts to Sri Lanka despite loss of market share in 2011 to 45% in terms of value compared to 51% in 2010. Japan slightly gained market in 2011 accounting for 36% of the market compared to 33% in 2010. China in third place, retained its market share at 5%.
The total number of new vehicles registered stood at 525,421 for the year as per the Department of Motor Traffic, up 32% from 2010.
Last year also saw a record growth of 150% in new registrations of all types of motor cars and the number of cars registered for the year was 57,886, according to Department of Motor Traffic.
One of the key findings of the CCC analysis is the rapid increase in demand for hybrid vehicles in Sri Lanka. The number of hybrid vehicles imported has recorded an unprecedented growth of 1200% in 2011 compared to 2010 despite the upward revision of taxes. This growth momentum is likely to continue with the increase in fuel prices. The number of vehicles imported in 2010 was only 438 and by 2011 the number has increased to 5927.
The CCC says the strong demand for small vehicles in Sri Lanka continues. Motor cars of less than 1000 cc capacity recorded a growth of 222% in 2011 with the introduction of Nano cars seen as a major factor behind this record growth.
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