ANALYSIS: Sri Lanka Car Market 2024

Sri Lanka: Total Vehicle Population (2012-2023)

Car Registrations in Sri Lanka decreased to 108 Units in November from 129 Units in October of 2023. Car Registrations in Sri Lanka averaged 2191.31 Units from 1997 until 2023, reaching an all time high of 15017.00 Units in September of 2015 and a record low of 41.00 Units in November of 2022. source: Central Bank of Sri Lanka.

The Government of Sri Lanka is planning to lift the restriction on importation of motor vehicles shortly which was barred since 2020-23 during Covid 19 Pandemic followed by the economic crisis as a result of the foreign exchange shortage. 

Investment Advise to Car Owners
Sri Lankan Rupee (LKR) has depreciated against the Japanese (JPY), India (INR) and Europe (EURO) during last 3 years representing the currencies of the largest exporters of used/new Motor vehicles to Sri Lanka.

– Sell your Japanese Cars (Toyota, Honda etc..) instead of selling the Indian Cars before import restriction is lifted
– Hold on to your European Cars (Mercedez, BMW etc,,) before selling Indian Cars (Maruti, Tata, Nano etc..)
– European cars can be sold for higher profits margin and Return on Investment (ROI) in future.

Analysis of Future Car Prices based on Exchange Rate comparison:

“The government is to lift restrictions of vehicle imports partially allowing the motor traders to bring down small cars with engine capacity of 1000 CC and 1300 CC. This decision will be taken in accordance with a comprehensive policy and guidelines in vehicle imports soon, a senior Finance Ministry official said.

Import cost of Japanese Vehicles likely to go up by more than 39% than previous imported cost due to appreciation of JPY/LKR from 1.60 to 2.23 within last 3 years. This is in addition to any changes in Custom Duty and other levies

Cost of Indian Vehicles

Import cost of Indian Vehicles are likely to go up by more than 58% than previous imported cost due to appreciation of INR from LKR 2.50 to 3.88 within last 3 years. This is in addition to any changes in Custom Duty and other levies. #SriLanka

Cost of European Vehicles

Import cost of European Vehicles are likely to go up by more than 77% than previous imported cost due to appreciation of EURO from LKR 199 to 353 within last 3 years. This is in addition to any changes in Custom Duty and other levies.

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