Electric Vehicles - Sri Lanka

Sri Lanka

In 2024, the projected revenue in the Electric Vehicles market in Sri Lanka is expected to reach US$13.4m.
This market segment is anticipated to show a compounded annual growth rate (CAGR 2024-2028) of 7.05%, resulting in a projected market volume of US$17.6m by 2028.
Furthermore, it is estimated that the unit sales of Electric Vehicles market will reach 410.00vehicles in 2028.
Additionally, the volume weighted average price of Electric Vehicles market in Sri Lanka is expected to be US$43.9k in 2024.
When looking at the international perspective, it is evident that in China is expected to generate the highest revenue in the Electric Vehicles market, with an estimated amount of US$319,000m in 2024.
Sri Lanka's electric vehicle market is gaining momentum with increasing government incentives and growing consumer awareness.

Key regions: United States, Germany, Netherlands, China, United Kingdom

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Analyst Opinion

The Electric Vehicles market in Sri Lanka has been experiencing significant growth in recent years.

Customer preferences: Customers in Sri Lanka are increasingly opting for electric vehicles due to their numerous advantages. One of the main customer preferences driving the growth of the market is the rising awareness about environmental sustainability. Electric vehicles produce zero tailpipe emissions, reducing air pollution and contributing to a cleaner environment. Additionally, customers are attracted to the lower operating costs of electric vehicles compared to traditional gasoline-powered vehicles. The lower fuel and maintenance costs make electric vehicles a more economical choice for many consumers.

Trends in the market: One of the key trends in the Electric Vehicles market in Sri Lanka is the increasing availability and variety of electric vehicle models. As more manufacturers introduce electric vehicles into the market, customers have a wider range of options to choose from. This trend is driven by the global shift towards electric mobility and the increasing demand for electric vehicles worldwide. Furthermore, the government of Sri Lanka has implemented policies and incentives to encourage the adoption of electric vehicles, such as tax exemptions and subsidies. These measures have contributed to the growth of the market and attracted more customers to consider purchasing electric vehicles.

Local special circumstances: Sri Lanka has a relatively small land area, which makes electric vehicles a practical choice for commuting within cities and towns. The shorter distances traveled in urban areas make electric vehicles suitable for daily transportation needs. Additionally, Sri Lanka has a well-developed charging infrastructure, with charging stations available in major cities and along highways. This infrastructure development has further facilitated the adoption of electric vehicles in the country.

Underlying macroeconomic factors: The Electric Vehicles market in Sri Lanka is also influenced by underlying macroeconomic factors. The country has been experiencing steady economic growth, which has increased the purchasing power of consumers. As a result, more individuals are able to afford electric vehicles, leading to an increase in demand. Moreover, the government's focus on promoting sustainable development and reducing dependence on fossil fuels aligns with the global push towards electric mobility. This commitment is reflected in the policies and incentives implemented to support the growth of the Electric Vehicles market in Sri Lanka. In conclusion, the Electric Vehicles market in Sri Lanka is experiencing growth due to customer preferences for environmentally friendly and cost-effective transportation options. The availability of electric vehicle models, government incentives, and the well-developed charging infrastructure are contributing to the increasing adoption of electric vehicles in the country. Additionally, the underlying macroeconomic factors, including steady economic growth and the government's focus on sustainability, are driving the development of the market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).