Passenger Cars - Sri Lanka

Sri Lanka

Revenue in the Passenger Cars market is projected to reach US$326.7m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 8.72%, resulting in a projected market volume of US$456.4m by 2028.
The market's largest segment is SUVs with a projected market volume of US$130.1m in 2024.
Passenger Cars market unit sales are expected to reach 16.92k vehicles in 2028.
The volume weighted average price of Passenger Cars market is expected to amount to US$28.14k in 2024.
With a vehicle unit sales share of 42.4% in 2024, Suzuki is expected to have one of the highest market share in the selected region.
The value market share of the make Suzuki in the selected region is expected to stand at 31.3% in 2024.
From an international perspective it is shown that the most revenue will be generated in the United States (US$558bn in 2024).

Key regions: United States, Germany, Europe, China, India

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Analyst Opinion

The Passenger Cars market in Sri Lanka has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: In Sri Lanka, there has been a shift in customer preferences towards smaller and more fuel-efficient vehicles. This is primarily due to the increasing cost of fuel and the desire for more affordable transportation options. As a result, there has been a rise in the demand for compact cars and hybrid vehicles, which offer better fuel economy and lower emissions.

Trends in the market: One of the key trends in the Sri Lankan Passenger Cars market is the growing popularity of electric vehicles (EVs). The government has been actively promoting the adoption of EVs through various incentives and subsidies, including tax exemptions and reduced import duties. This has led to an increase in the availability of EV models in the market and a growing acceptance among consumers. Additionally, the development of charging infrastructure across the country has further fueled the demand for EVs. Another trend in the market is the increasing demand for SUVs and crossover vehicles. This can be attributed to changing consumer lifestyles and preferences for vehicles that offer a higher seating position, better road visibility, and more space for passengers and cargo. The popularity of SUVs has also been driven by the growing number of young professionals and families who are looking for versatile and practical vehicles.

Local special circumstances: Sri Lanka has a unique geography and road infrastructure, with many areas having narrow roads and limited parking space. This has influenced customer preferences towards smaller and more maneuverable vehicles that are easier to navigate in congested urban areas. Additionally, the high import duties and taxes imposed on larger vehicles have made compact cars more affordable and accessible to the majority of consumers.

Underlying macroeconomic factors: The growth of the Passenger Cars market in Sri Lanka is also influenced by underlying macroeconomic factors. The country has been experiencing steady economic growth, which has led to an increase in disposable income and consumer spending power. This has resulted in a higher demand for personal transportation and a willingness to invest in vehicles. Furthermore, the availability of financing options and low-interest rates have made it easier for consumers to purchase cars. This has contributed to the overall growth of the Passenger Cars market in Sri Lanka. In conclusion, the Passenger Cars market in Sri Lanka is developing in response to changing customer preferences, emerging trends, and local special circumstances. The shift towards smaller and more fuel-efficient vehicles, the growing popularity of EVs, and the demand for SUVs and crossover vehicles are driving the market growth. Additionally, the unique geography and road infrastructure, as well as the underlying macroeconomic factors, play a significant role in shaping the market dynamics in Sri Lanka.

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).