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New-car registrations drop by a third as vehicle market cools

Sri Lanka’s vehicle registrations fell 12.1 percent in October from a month earlier, with the two-wheelers accounting for more than three-quarters of the decline as fewer cars, SUVs and commercial vehicles were also registered, the data compiled by JB Securities showed.

Total registrations dropped to 47,628, from 54,214 in September. The two-wheeler registrations fell 13 percent to 33,722, with the scooter registrations down to 19,405, from 22,799 and the motorcycle registrations down to 13,654, from 15,379.

The motor car registrations fell 17.9 percent to 2,802. The brand-new registrations fell about 34 percent to 453, while the pre-owned registrations declined about 14 percent to 2,349.

BYD led the new-car segment, with 221 registrations, including 197 ATTO 1s. Suzuki led the pre-owned segment, with 836, including 714 Wagon Rs.

The SUV and crossover registrations declined 13.8 percent to 3,399. Toyota led with 1,214 registrations, including 922 Raizes, followed by Honda, with 651, almost all of them Vezels.

The pickup registrations fell 32.4 percent to 244, while the medium-truck and bus registrations each dropped by more than a fifth.

The electric vehicle registrations rose 5.4 percent to 6,374, driven by the electric two-wheelers, which increased to 5,342, from 5,030. The electric motor car registrations fell to 345, from 495. The large-tractor registrations climbed 49.1 percent to 407.

The share of two-wheeler registrations financed rose to 59.9 percent, from 54.4 percent in September. For the three-wheelers, it increased to 48.9 percent, from 43.9 percent.

JB Securities put the value of passenger and commercial vehicle imports at US $ 1.87 billion in the first nine months of 2026 and estimated the full-year bill could reach US $ 2.4 billion, up from US $ 2.02 billion in 2025.

“The passenger vehicle imports, however, have moderated considerably, declining from over US $ 200 million per month to below US $ 150 million,” JB Securities CEO Murtaza Jafferjee said in the report.

Jafferjee attributed the slowdown to the easing pent-up demand, a weaker rupee, tighter credit conditions and higher border taxes, including a 50 percent surcharge on motor vehicle import duties.

He said softer passenger vehicle imports could weigh on tax collections, with the surcharge and higher rupee valuations potentially offsetting part of the impact