Monday, October 23, 2017

Car buyers expecting tariff reductions in budget

Mixed sentiments were witnesses for September Car registrations as most of the market seems to be on a wait and see expecting tariff reductions in the upcoming budget according to according to a survay by J. B. Securitues.

Overall, brand new motor cars declined by 27.5% on a month on month basis (MoM) and 57.6% on a year on year basis. (YoY.) Medium car segment share improved from 3% to 4%. Financing share for large cars dropped from 30% to 26%.

Financing share for medium cars dropped from 47% to 26% and financing share for Small cars increased from 57% to 63%. Overall financing share for brand new motor cars increased from 56.5% to 61.2%.

Pre-owned motor cars declined by 26% MoM and increased 26.6% YoY. Small car segment share increased from 49% to 51%. Overall financing share for pre-owned cars decreased from 55.6% to 54.8%.

Overall premium cars dropped from 80 in August to 54 in September. Electric car registrations declined from 11 in August to 8 in September. Overall Brand-new SUV’s declined by 45% MoM and 48% YoY, while Pre-owned SUV’s decreased by 5% MoM and increased by 21% YoY.

Brand new Hybrids declined by 33% MoM, pre-owned hybrids also dropped by 25% MoM.

Vans improved by 25% MoM and declined by 28% YoY. Mini vans dropped from 713 to 520 registrations.

Meanwhile 3-wheelers observed a drop of 7% MoM and decline of 56% YoY while 2-wheelers registered 28,154 in September, a 7% drop MoM and 5% drop YoY.

Pickups saw an increase in growth of 24% MoM, however a 63% drop in YoY. Brand new Mini Trucks witnessed growth of 62 % MoM and a drop of 70% YoY.

Buses dropped by 3% MoM and declined by 10% YoY. Lanka Ashok Leyland continued to dominant the segment.

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