According to a study compiled by the Ceylon Chamber of Commerce (CCC) analysing vehicle imports to Sri Lanka the vehicle import market is experiencing rapid growth following the revision of import duty structure.

It noted that in 2010 the value of imports recorded an unprecedented growth of 215% increasing from Rs. 37 billion in 2009 to Rs.117 billion in 2010. India continues to dominate the Sri Lankan vehicle import market with a share of over 50% followed by Japan accounting for 30%.

“The demand for small vehicles is robust. In terms of quantity imported, motor cycles and auto trishaws surpass all other types of vehicles. Each year Sri Lanka imports over 100,000 motorcycles (of engine capacity 50 cc-250 cc),” the report said adding that in 2010 the number of motor cycles imported showed exceptional growth of 97% and for the first time the number imported exceeded 200,000.

The publication provides a detailed breakdown of vehicle imports to Sri Lanka by type of vehicle, the value, the number and the country of origin for the period 2005-2010.

Meanwhile, according to CCC report over 400 hybrid cars have been imported in 2010 costing over a billion rupees.

The Toyota Prius and Honda Insight have become the most popular brands.

In the Budget 2010 duty was reduced to around 15% for hybrid and electrical cars.

The number of companies issuing hybrids is expected to increase with premier brands such as BMW, Benz and Porsche revealing their hybrid models into the market.