National Reserve Bank of Tonga

Almost all vehicle types drive a fall in registrations

Almost all vehicle types drive a fall in registrations

Over July, the total number of vehicle registrations decreased by 8.4% to 240 registrations (refer to Table 1). This was driven by a decline in the registration of almost all vehicle types except “Heavy vehicles”, “Light vehicles”, and “Motorcycles”. “Government vehicles” which increased in June, fell by 90.0% over the month of July. This coupled with the drop in “Taxis & rentals” which declined by 33.3%. This indicates the end of the coronation celebrations and festivities. Moreover, vehicle loans decreased by 71.1% supporting the monthly decline in registrations. In annual terms, registrations rose by 29.6% due to an increase in the registration of all vehicle types except “Government vehicles” and “Motorcycles” (refer to Table 1 and Figure 2). This coincides with a 16.4% rise in vehicle import payments.

Looking forward, the NRBT expects growth in vehicle registrations supported by an increase in vehicle payments over July (refer to Figure 1). Additionally, liaisons with vehicle importers have  indicated rising popularity of particular models and thus higher demand for vehicles. Furthermore, new vehicle loan commitments have been on the rise recently, indicating a projected rise in  registrations in the near-term. According to liaisons with the tourism sector, programs and schemes they have in place are also expected to have spillover effects on public transport, car rental  providers and vehicle registrations. The NRBT will continue to closely monitor the country’s economic and financial conditions in order to maintain an adequate level of foreign reserves.

Download the Vehicle Registrations for June for more information.