Large Cars - Sri Lanka

Sri Lanka

Highlights

Revenue in the Large Cars market is projected to reach US$32m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -3.51%, resulting in a projected market volume of US$27m by 2029.
Large Cars market unit sales are expected to reach 723.0vehicles in 2029.
The volume weighted average price of Large Cars market in 2024 is expected to amount to US$39k.
From an international perspective it is shown that the most revenue will be generated China (US$106bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Large Cars market in Sri Lanka has been experiencing significant growth in recent years.

Customer preferences: One of the key factors driving the growth of the Large Cars market in Sri Lanka is the increasing demand for spacious and comfortable vehicles. Sri Lankan consumers are placing greater emphasis on luxury and comfort, and large cars provide the perfect solution. These vehicles offer ample space for passengers and cargo, making them ideal for family trips and long journeys. Additionally, large cars often come equipped with advanced features and technologies, further enhancing the overall driving experience.

Trends in the market: One noticeable trend in the Large Cars market in Sri Lanka is the rising popularity of SUVs (Sports Utility Vehicles). SUVs have gained significant traction among consumers due to their versatility and ruggedness. Sri Lanka's diverse terrain, which includes both urban areas and rural landscapes, makes SUVs an attractive choice for many buyers. These vehicles offer a higher ground clearance and better off-road capabilities, making them suitable for various road conditions. Furthermore, SUVs often come with advanced safety features, which is a crucial consideration for many Sri Lankan consumers. Another trend in the Large Cars market in Sri Lanka is the increasing demand for electric and hybrid vehicles. As the country focuses on reducing its carbon footprint and promoting sustainability, there is a growing interest in eco-friendly transportation options. Electric and hybrid large cars offer lower emissions and better fuel efficiency compared to traditional gasoline-powered vehicles. The government has also introduced incentives and tax benefits to encourage the adoption of electric and hybrid vehicles, further driving their popularity in the market.

Local special circumstances: One unique factor that influences the Large Cars market in Sri Lanka is the high import taxes and duties imposed on vehicles. Sri Lanka has one of the highest import duties in the region, making cars significantly more expensive compared to other countries. As a result, consumers often opt for larger vehicles to maximize the value for their money. Large cars offer more features and space, making them a practical choice for many Sri Lankan buyers.

Underlying macroeconomic factors: The growth of the Large Cars market in Sri Lanka can be attributed to several macroeconomic factors. The country's improving economy has led to an increase in disposable income, allowing more consumers to afford large cars. Additionally, the expanding middle class and changing lifestyles have contributed to the demand for spacious and luxurious vehicles. Furthermore, the government's infrastructure development initiatives, such as the construction of highways and expressways, have made long-distance travel more convenient, further driving the demand for large cars. In conclusion, the Large Cars market in Sri Lanka is experiencing significant growth due to customer preferences for spacious and comfortable vehicles, the rising popularity of SUVs, the increasing demand for electric and hybrid vehicles, the high import taxes and duties on vehicles, and the underlying macroeconomic factors such as the improving economy and infrastructure development.

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).