KARACHI, Oct 19: Auto sector has shown good results in the first quarter as car sales went up by 23 per cent, bikes 28 per cent, light commercial vehicles (LCVs) 28 per cent, trucks 92 per cent and buses registered growth of 48 per cent.

The car production in July-September 2002-03 increased by 25 per cent as compared to same period of 2001-02. An increase of 27 per cent was recorded in production of LCVs, while trucks and buses production witnessed a jump of 167 per cent and 52 per cent respectively. Motorcycles’ assembly rose by 25 per cent while a drop of eight per cent was seen in production of tractors.

Figures, compiled by Pakistan Automotive Manufacturers Association (PAMA), showed rolling out of a total 12,864 cars in first three months of 2002-03 as against 10,246 units in the same period of 2001-02. Sales stood at 12,880 units as compared to 10,485 units.

Rising production and sales of cars can be attributed to rising demand of cars in the last few months, change of models, attractive package given by leasing companies and banks for car financing, marked increase in home remittances after September 11 incidents and positive economic indicators.

However, one of the leading assemblers feel that the enhanced demand in cars is a temporary phenomenon and this increase in demand is a result of the desire of customers to possess new models of cars earlier than planned. He feels that the demand and supply within the country is expected to balance in the next few months.

The car market is expected to grow approximately by 10 per cent in the current fiscal year, he says. Production of Toyota Corolla had already been enhanced in August from 15,000 units to 18,000 units per year on a single shift basis while other makers have also geared up production as per government’s instruction to meet the surging demand.

Sales of motorcycles (Honda, Yamaha and Suzuki) surged to 35,377 units as compared to 27,614 units. Production of bikes jumped to 35,432 units from 34,815 units. Japanese dominated PAMA has added a new Chinese bike assembler in its member list namely Sohrab from September. Japanese bike makers still enjoy a monopoly in the market as seven Chinese assemblers are still waiting for a go-ahead signal from the Excise and Taxation Department for the registration of bikes. As a result, consumers are facing problems to own a cheaper bike.

A total of 15,689 units of LCVs (Potohar, Bolan, Hilux 4x4 and 4x2, Ravi, Shehzore and Ceres) were assembled in July-September 2002 as compared to 12,287 units, while sales peaked to 15,689 units as against 12,245 units.

An assembler of cars and LCVs said that the market for cars and LCVs had shown a growth of 52,000 units (10 per cent) in 2001-2002 after remaining stagnant between 39,000-47,000 units in the last few years.

PAMA’s figures had been missing production of Santro Plus since July 2002 due to change of model which had now been launched a few days back.

In bus and truck segments, Hinopak, Ghandhara Nissan and Sind Engineering Mazda, performed well in July-August 2002 as their combine production and sales jacked up by 94 per cent and 66 per cent to 760 and 727 units as compared to 392 and 438 units.

An assembler said a lot depends on the post-election scenario coupled with general economic conditions in coming months. Transport business will improve in case economic activity picks up.