Vehicle registrations fall 13.8% in August to nine-month low

Total vehicle registrations in Sri Lanka fell 13.8% month-on-month to 45,569 units in August 2026, the lowest monthly total since November 2025’s 43,810 units, Daily FT reported citing HNB Stockbrokers Research’s September Market Insights report. Hiru News carried the same findings.

Two-wheelers, the bulk of the market, fell 11.9% to 33,613 units. Brand-new car and SUV registrations together dropped 33.9%.

Two policy measures, not one

HNB attributed the fall to a pair of interventions. The government extended a 50% surcharge on Customs Import Duty for imported vehicles on 14 August, carrying it to 31 December 2026 after applying it from mid-May as a temporary measure; imports against letters of credit opened on or before 15 May remain exempt. Separately, loan-to-value limits tightened on 25 May cut maximum ratios for cars, SUVs, vans and three-wheelers to 40% from 50%, and for commercial vehicles to 60% from 70%.

The broker expects the effect to weigh more heavily on mid- and high-end segments through the rest of the year, with cheaper segments proving more resilient.

Hybrids overtake EVs in SUVs

Brand-new car registrations fell 38.1% to 632 units. BYD held the lead with 342 units despite a 56.3% fall from July, while Kaiyi rose 282.4% to 65 units for second place. The Atto 1, at roughly Rs. 7-9 million, remained the best-selling model.

The sharper shift was in SUVs, where brand-new registrations fell 31.3% to 1,093 units. Hybrids took a 49% share, up from 25% in July, overtaking EVs, whose share fell to 14% from 28%. Jetour displaced BYD as segment leader on 26.8%; BYD slid to third as its Atto 2 fell 84.5%.

One subcategory grew: coach and bus registrations rose 33.7% to 250 units, led by Foton on a 42.4% share — a rise that coincides with the metro bus rollout and the opening of a fourth depot at Ratmalana, though neither source links the two.

A note on the base: HNB’s 13.8% decline implies a July total near 52,865, slightly below the 53,221 units JB Securities reported. The two brokers count marginally differently.