The Ceylon Chamber of Commerce has revived its flagship Motor Vehicle Industry Report after a six-year hiatus, with the release of the Motor Vehicle Industry Report 2025/26 as Sri Lanka’s automotive sector enters a new phase following the resumption of vehicle imports.

The report highlights the growing economic significance of the motor vehicle industry, noting that vehicle imports have generated Rs. 896.4 billion in customs revenue, underscoring the sector’s substantial contribution to government finances.

The publication also points to a gradual shift in the structure of Sri Lanka’s automotive industry, with more than 15 local vehicle assembly plants now operating and policies requiring a minimum of 20% domestic content. The developments are expected to support greater local value creation, employment and industrial activity, alongside traditional vehicle imports.

Signs of a recovering market are also evident in vehicle registrations. More than 327,000 new vehicles were registered during the first six months of 2026, indicating renewed consumer demand following the prolonged restrictions on vehicle imports.

The report provides a comprehensive review of the sector, covering industry trends, policy developments, market data and the outlook for Sri Lanka’s automotive industry. It is intended as a reference for vehicle importers, assemblers, dealers, financial institutions, insurers, policymakers, investors and other stakeholders seeking to make informed business and investment decisions.

Among the key areas examined is the economic contribution of the motor vehicle industry and the policy measures shaping its future. The report also analyses vehicle imports, registrations, fleet composition and ownership transfers, while providing insights into market trends across major vehicle segments based on factors including brand, fuel type, cylinder capacity and geographic distribution.

The publication places Sri Lanka’s automotive sector within the context of major global developments, including the rapid growth of electric vehicles (EVs). Globally, EV sales have exceeded 20 million units for the first time, with electric vehicles now accounting for approximately one in four new cars sold.

The report also examines the growing influence of artificial intelligence (AI) and emerging technologies on the automotive industry. From advanced onboard safety systems to virtual vehicle testing, AI is increasingly being used to enhance efficiency, accelerate innovation and reduce vehicle development times by as much as 50%.

The Ceylon Chamber said the report comes at a critical juncture for Sri Lanka’s automotive industry, which is adapting to the renewed import environment while responding to changing consumer preferences, rapid technological advances and an evolving regulatory framework.

With its combination of market data, industry intelligence and policy analysis, the Motor Vehicle Industry Report 2025/26 provides a data-driven assessment of the current state of Sri Lanka’s automotive sector and its future direction, highlighting both the challenges and opportunities emerging as the industry moves towards greater local value creation and technological transformation.