Tuesday Sep 22, 2026
Tuesday Sep 22, 2026
Tuesday, 22 September 2026 06:24 - - {{hitsCtrl.values.hits}}
Total vehicle registrations fell 13.8% month-on-month (MoM) to 45,569 units in August 2026, the lowest monthly total since November 2025’s 43,810 units, as tighter loan-to-value (LTV) limits and an extended import surcharge continued to weigh on demand, HNB Stockbrokers (HSB) Research said in its September 2026 Market Insights report.
Two-wheeler registrations, which make up the bulk of the market, fell 11.9% to 33,613 units, while brand-new car and Sports Utility Vehicle (SUV) registrations combined declined 33.9%.
HSB Research said its analysis focused on brand-new cars, SUVs, and commercial vehicles, given their stronger relevance to listed counters in the auto retail space.
Within this segment, motor car registrations totalled 2,652 units in August, of which 632, or 23.8%, were brand new. SUV registrations stood at 3,100 units, with 1,093, or 35.3%, brand new. Commercial vehicle registrations came in at 1,919 units, with 1,311, or 68.3%, brand new.
Brand-new motor car registrations fell 38.1% MoM to 632 units. BYD retained market leadership with 342 units, though registrations fell 56.3% from July, narrowing its dominance as Kaiyi and BAW gained ground. Kaiyi registrations rose 282.4% to 65 units, moving the brand into second place, while BAW registrations rose 10.9% to 61 units. The Atto 1, priced at approximately Rs. 7-9 million, remained the most sought-after model, followed by the Dolphin, priced at approximately Rs. 10-13 million. Electric Vehicles (EVs) accounted for 87% of brand-new car registrations in August, down from 92% in July, with the five largest models in the segment all electric.
In the SUV segment, brand-new registrations fell 31.3% MoM to 1,093 units. Jetour overtook BYD as market leader with a 26.8% share, driven by the Jetour T2. Suzuki registrations fell 54.9%. BYD slipped to third, with registrations falling to 148 units (-68.6% MoM), as its Atto 2 model, the segment’s largest in July, fell 84.5% and no longer featured among the five largest models. Hybrids rose to a 49% share of brand-new SUV registrations, from 25% in July, overtaking EVs, whose share fell to 14% from 28%. HSB Research said the shift reflected growing demand for competitively priced hybrid models, with electrification overall remaining a key trend even as EV penetration softened.
Brand-new commercial vehicle registrations totalled 1,311 units, down 9.1% MoM, as declines in pickup trucks outweighed growth in the truck and coach/bus subcategories. Pickup truck registrations fell 19.3% to 381 units, with Mahindra and Tata together accounting for 86.4% of the submarket. Truck registrations rose 2.2% to 416 units, led by Isuzu with a 39.4% share, followed by Lanka Ashok and Tata. Coach/bus registrations rose 33.7% to 250 units, led by Foton with a 42.4% share.
HSB Research noted that the Government on 14 August extended the 50% surcharge on Customs Import Duty for imported vehicles to 31 December 2026, having initially applied it from mid-May on a temporary basis. Imports against Letters of Credit (LCs) opened on or before 15 May remain exempt.
The surcharge, combined with LTV limits tightened on 25 May, which reduced maximum ratios for motor cars, SUVs, vans, and three-wheelers to 40% from 50%, and for commercial vehicles to 60% from 70%, is likely to continue weighing on affordability and moderating demand through the remainder of the year, HSB Research said. The impact is expected to be more pronounced in mid- to high-end vehicle segments, while lower-priced segments may prove relatively more resilient.
Among listed automotive retailers, HSB Research noted that BYD, distributed by John Keells Group, retained leadership in the motor car segment on the strength of the Atto 1 and Dolphin, but slipped to third in SUVs as the Atto 2 declined sharply, with the Sealion range now contributing around two-thirds of its SUV volumes.
BAW, distributed by Browns, saw volumes rise to 61 units, lifting its brand-new car market share to approximately 10% from approximately 5%. Under Hayleys, JAECOO registrations moderated to 85 units from 94 in July, while Kaiyi registrations rose to 65 units from 17, moving into second place in the motor car segment on the back of the Kaiyi e.
Under DIMO, brand-new Mercedes-Benz registrations rose to 21 units from 14, though Tata registrations eased to 191 units from 298, pointing to some moderation in commercial vehicle demand. Under Access, Land Rover registrations included five brand-new SUVs in August, while Access Engineering Ltd.,/Sathosa Motors PLC registered 164 brand-new Isuzu trucks. Lanka Ashok truck registrations surged to 108 units from 22 in July.
