KARACHI, Sept 21: The entire auto sector managed to sell higher number of units and earned good sales in July-August 2002, marked by the rise in sales of cars and bikes by 15 per cent and 31 per cent, respectively. Sales of trucks, buses and LCVs also jumped by 94, 35, 39 and eight per cent, respectively, during the same period.

Consumers bought 15 per cent more cars in the first two months of the new fiscal with a total sales of 7,897 units as compared to 6,852 units in July-August 2001. As a result of boom in sales, manufacturers had to gear up the production to 8,114 units in the last two months as compared to 6,37 units in the same period of 2001, up by 28 per cent.

The increase in production is also attributed to the government’s instruction to expedite assembly of sedans and delivery to the consumers in two months instead of three months to cope with the rising demand.

A total of 1,684 units of Toyota Corolla were produced as compared to 1,093 units, while sales peaked to 1,572 units as against 1,234 units. Despite expanding the production, customers are still facing delays in delivery. Indus Motors Company (IMC) has recently informed their buyers that it would pay mark-up to all those customers who have booked vehicles after August 16, 2002, in case vehicle is not delivered in 60 days.

Many customers have written letters to the Ministry of Commerce that IMC has still not delivered hundreds of vehicles to the customers who have booked Corolla on payment of 100 per cent amount in March 2002. They said the company should not pay the mark-up.

According to the figures of Pakistan Automotive Manufacturers Association (PAMA), a total of 995 units of Honda Civic were assembled in the last two months as compared to 693 units, while sales stood at 1,017 units as against 6,30 units. However, it seems that Honda City has lost its charm among customers as only 597 units were sold as compared to last year’s 740 units. Due to low demand, its production also suffered and only 626 units were made as compared to 716 units.

The main player Suzuki Mehran 800cc remained dominant with a production of 1,900 units in July-August 2002 as compared to 1,346 units same period last year, while sales touched to 1,941 units in comparison to 1,301 units. Cultus production and sales surged to 1,133 units and 1,042 units, respectively, as compared to 790 and 781 units. Alto 1000cc production and sales recorded at 602 and 580 units, respectively, as compared to 447 and 502 units. Baleno production and sales improved to 274 and 309 units, respectively, from 201 and 185 units.

Daihatsu Cuore demand had multiplied as production and sales rose to 755 and 705 units, respectively, from 39 and 162 units.

Nissan Sunny continued to show a lethargic performance with production and sales of five and 10 units, respectively, as compared to five and 30 units.

Dewan Motor has suspended the production of Santro Plus since July 2002 due to change of model, which will arrive in the market next month. Kia Spectra production and sales also nose-dived to 140 and 77 units, respectively, in July-August 2002 as compared to 851 and 741 units. Production Kia Classic NGV also remained suspended during the last two months but reasons could not be known.

An assembler linked the increase in sales and production of popular sedans to rising demand of cars since March this year, change of models, increase in home remittance in the post 9/11 scenario and attractive car loan schemes by leasing companies and banks. Rise in production and sales also showed that country’s economic indicators had remained on the positive side.

In two-wheelers, production and sales of bikes (Honda, Yamaha and Suzuki) went up to 23,707 units and 23,876 units, respectively, in July-August 2002, as compared to 17,786 and 18,156 units in the same period of 2001. The market has also seen the entrance of seven Chinese assemblers, but consumers are running from pillar to post to get these bikes registered as the excise and taxation department of Sindh is dragging its feet to register it. Hence, consumers are facing problems to buy cheaper bikes, ranging between Rs38,000 and Rs42,000 as compared to Japanese bikes worth Rs70,000-80,000.

In bus and truck segments, Hinopak, Ghandhara Nissan and Sindh Engineering Mazda, performed well in July-August 2002 as their combine production and sales jacked up by 63 per cent and 61 per cent to 459 and 429 units, respectively, as compared to 281 and 267 units.

An assembler said Hinopak remained the main supplier of buses under the Punjab government’s urban transport scheme. He said overall bus sales would further boost following start of Sindh government’s transport scheme for Karachi. He pinned hope on the elections in October to give a boost to economic activity and consequently to transport business.

Production and sales of light commercial vehicles (LCVs) also increased by 36 per cent and 39 per cent, respectively. A total of 1,786 units (Suzuki’s Jeep, Bolan and Ravi; Indus’s Hilux; and Dewan’s Shehzore) were produced as compared to 1,308 units, while sales moved up to 1,792 units from 1,285 units.