KARACHI: Sales of cars and light commercial vehicles (LCVs), jeeps and vans increased 27 per cent year-on-year to 60,469 units in July-September.

According to data released by the Pakistan Automotive Manufacturers Association (Pama) on Tuesday, car sales rose 22.3pc to 50,640 units from 41,405 units a year ago. Sales of LCVs climbed 57.5pc to 9,829 units from 6,240 units last year.

Assemblers of local vehicles, including LCVs, vans and jeeps, managed to sell 18,798 units in September, up 17pc year-on-year. However, a contraction of 15pc was noted in sales on a month-on-month basis because of fewer working days in September on account of Eid holidays.

Honda Atlas Cars continued to outperform peers with 24pc annual growth in September due to the success of its new models, Civic ad BRV. However, its sales slowed down 27pc on a monthly basis as a plant remained shut for a longer period compared to others because of the clumping of Eid and Muharram holidays. In the first quarter of 2016-17, Honda’s sales grew 56pc to 12,606 units.

Pak Suzuki sold 22pc more units in the first quarter on an annual basis. Sales of Mehran went up 43pc, WagonR 60pc and Cultus 33pc, exhibiting healthy annual growth. Cumulative first-quarter sales were up 30pc year-on-year to 32,777 units for Pak Suzuki.

Indus Motor Company lagged behind its peers with thin growth in September as well as the first quarter mainly due to production constrains.

Sales of Toyota Corolla grew slightly to 12,765 units from 12,655 units in July-September. Sales of Toyota Fortuner swelled to 793 units from 145 units. A minor fall was witnessed in Toyota Hilux sales, which dropped to 1,530 units from 1,585 units in the same quarter a year ago.

Adnan Sami Sheikh of Topline Securities said tractor sales exhibited an upward trajectory with an annual increase of 74pc in September. Al Ghazi Tractors outperformed Millat Tractors, exhibiting 118pc growth versus the latter’s 72pc. Tractor sales doubled to 15,710 units in the first quarter.

He said a lower general sales tax rate on tractor purchases, fertiliser cash subsidy, and a Rs2bn subsidy for farmers recently announced by the Sindh government will improve overall sales in the future.

Truck and bus sales posted by Pama members remained strong in September, up 37pc on an annual basis. Sales in the first quarter rose 23pc year-on-year.

Published in Dawn, October 11th, 2017