KARACHI, Aug 10: The first month of the current financial year proved shocking for car assemblers owing to 39.4 per cent drop in their sales.
The sales dipped to 8,996 units as compared to 14,856 units in July 11.
An analyst at Top Line Securities Zeeshan Afzal linked fall in sales to accomplishment of Punjab government’s taxi scheme under which Pak Suzuki provided 20,000 units of Bolan and Mehran between October 2011 and June 2012.
Another reason cited was the termination of Suzuki Alto production from July followed by prompt buying by dealers and individuals before any price increase on account of introduction of Euro-II models. Besides, suspension in Daihatsu Cuore’s production also made a negative impact on overall car sales.
The analyst said that in July last year, there was an abnormal high sale when June sales were deferred to July on account of reduced tax structure announced in the federal budget FY12.
Production/sale data released by the Pakistan Automotive Manufacturers Association (PAMA) revealed a fall in Toyota Corolla sales to 2,464 units in July 2012 from 3,681 units in July 2011 while its production dropped to 2,914 units from 3,859 units in July 2011.
The assemblers of Corolla did not produce cars between last week of July 2011 and first week of August owing to unsold stocks available with their dealers.
Pak-Suzuki finally closed down production of Alto from July 2012 besides depicting its zero sales last month in PAMA figures. In July 2011, Alto production and sales stood at 990 units and 1,728 units, respectively.
Suzuki Cultus production and sales was recorded at 1,451 and 1,135 units in July 2012 as compared to 929 and 1,700 units in July 2011.
Mehran production and sales stood at 2,641 and 2,217 units in July 2012 as compared to 2,082 and 3,650 units in July 2011. Production and sales of Bolan plunged to 1,007 and 762 units in July 2012 as compared to 1,051 and 1,818 units in July 2011.
Production and sales of Honda Civic surged to 490 and 506 units as compared to 333 units and 333 units. Honda City’s production and sales stood at 1,663 units and 1,144 units as compared to 605 units and 637 units.