KARACHI, Aug 25: Car sales dropped by 21 per cent in the month of July over the earlier month, but sales, when compared with the same month last year, recorded an impressive growth of 56 per cent to 5,692 units.

Commenting on the data released by the Pakistan Automotive Manufactures’ Association (PAMA), Tanvir Abid, head of research at Jahangir Siddiqui & Co. Ltd observed that the dip in sales during July could be partially attributed to excessive rains during the month and its impact on domestic economic activity. But the analyst contended that car sales would go uphill in the coming months. “Our discussion with industry sources indicated that almost all the car manufacturers’ have advance bookings for upto a year”, Mr. Abid said.

On year-on-year basis, car sales at Indus Motors had increased 82.2 per cent to 1,980 units up to July 2003, compared with 1,087 units up to the corresponding month last year. During the same period, sales at Dewan Farooque Motors rose 58 per cent to 610 units, from 386 units. Maintaining a different year of closing, Pak Suzuki saw a 62.2 per cent growth in auto sales to 26,474 units in the seven months, Jan-July 2003, from 16,317 units in the same time of 2002.

Sales at Honda Atlas Cars, nonetheless, decreased by about 10 per cent in the four months April-July 2003 to 2,913 units, from 3,234 units in the corresponding period of the previous year. Analyst observed that the slip in sales represented mainly, the phasing out of the old City model and the ensuing time lag. There is likely to be a stiff competition between Indus Motor’s Toyota Corolla and Honda Atlas’ flagship brand Civic. Analyst believed that given the current craze for new models, New City’s sales could see an upswing, more so as the brand “is attractively priced at Rs789,000 for the manual variant and Rs839,000 for the automatic one”, said the analyst.

At Pak Suzuki, Jan-July 2003 sales witnessed 62 per cent increase compared with same period a year ago, with all major brands recording strong growth; Sales of Baleno increased by 113 per cent; Mehran by 78 per cent; Alto by 75 per cent and Cultus by 37 per cent. However, sales of Potohar decreased 29 per cent and that of Ravi by 2 per cent. Pak Suzuki has decided to expand its production with a capacity enhancement that would cost Rs1.3 billion.

Sales at Indus Motors during July 2003 stood at 1,980 units compared with 1,087 units in the same month of 2002. In the financial year ended July 2003, the company recorded sales at 20,307 units up from 11,066 units in the previous year. “Sales have rocketed on the back of 109 per cent increase in Corolla sales to 12,867 units, 44 per cent growth in Daihatsu Cuore and 64 per cent surge in Hilux sales”, says Tanvir Abid.

The latest entrant in the domestic auto market — Dewan Farooque Motors, saw a 58 per cent jump in its Korean brand of cars during July to 610 units as against 386 units sold during the same month previous year. But brand-wise, except Santro, almost all major brands, saw drop in sales during July, said the analyst.