National Reserve Bank of Tonga

Private and business vehicles drove higher registrations

The registrations of new vehicles increased over the month for all types of automobiles which indicates strong activities in the transportation sector during May 2018. The total vehicle registrations rose over the month by 145 registrations (58.9%), recording a total of 391 new vehicles. Registrations for individual cars increased the most by 56 registrations (47.5%) and followed by a rise in taxis and rentals of 49 registrations. Liaison suggests that this trend was particularly driven by the events which occurs around May to July annually. This includes the churches annual conference, family month of May celebrated in Tonga and the Heilala festival. Registrations  for all other vehicle types such as other light vehicles and government vehichles also rose over May 2018.

Additionally, import payments for vehicles also rose over the month by $0.6 million to a total $1.7 million coinciding with the rise in total vehicle registrations. This may have been supported by a $9.1 million (34.7%) increase in remittances over the month.

In year ended terms, the total number of vehicles registered declined by 12 (0.3%) registrations. This was due to a decline in the registration of private vehicles (cars and other light vehicles), buses and motorcycles, which outweighed an increase in rentals & taxis, government and heavy vehicle registrations. However, the payments for the import of vehicles recorded in the Overseas Exchange Transactions reports rose slightly by $0.2 million (0.9%) over the year to May 2018.

The Reserve bank expects the total vehicle registrations to remain high in the short term given the events that are scheduled for the upcoming months and the return of seasonal employees during this time of the year. Additionally, the availability of vehicles’ hire purchase, the convenience of vehicle online purchasing will remain an advantage. 

Resources

Vehicle Registrations - May 2018 Released on 5 October 2018 |  148 KB - Download a copy of the full report.

See more Vehicle Registrations releases.