📈 Sri Lanka Vehicle Registrations Surge 19.7% to New High in May

Sri Lanka’s vehicle market hit its strongest monthly performance since the reopening of imports, jumping 19.7% month-on-month (M-o-M) to 60,444 units in May, driven by buyers frontloading purchases ahead of tighter financing and tax rules. • Overall Volume: Total registrations reached a 5-month high of 60,444 units. Two-wheelers continued to dominate the market with 43,166 registrations (up 11.9% M-o-M). • Passenger Cars: Brand-new car registrations skyrocketed 164.3% M-o-M to 1,110 units. Electric vehicles (EVs) dominated this segment, accounting for 91% of all brand-new motor cars. Budget-friendly models led demand: BAW registered 519 units (up 203.5%), and BYD rose nearly seven-fold to 436 units. The BAW E7 and BYD Atto 1 were the top models. • SUVs & Commercial: Brand-new SUV registrations dipped 12.3% M-o-M to 1,606 units, though EV penetration within SUVs jumped to 18% (up from 6% in April). Suzuki led the SUV segment with a 32.6% market share. Commercial vehicles remained robust at 2,002 units. • Outlook: Momentum is expected to cool in the coming months due to recent regulatory tightening, including higher interest rates, a temporary 50% government import surcharge, and the Central Bank reducing maximum LTV financing ratios by 10% across vehicle categories. _Data Source: HNB Stockbrokers_