KARACHI: The 25 per cent improvement in overall car sales in October 2009 over the previous month has suggested that the ongoing suicide attacks and bomb blasts have failed to deter the consumer passion for a new car.

Furthermore the increase in car prices by the assemblers during the month under review had not made any impact on sales. Pak Suzuki had raised prices by Rs5,000-Rs15,000, Indus Motor Company (IMC) by Rs30,000 and makers of Honda cars by Rs25,000-35,000 citing appreciation of foreign currencies especially Japanese yen against the rupee.

The share of banks in car financing and leasing now ranges between 15-20 per cent due to higher mark-up rates as majority is now buying on cash, indicating consumers have enough liquidity and are least bothered about the deteriorating security situation. Amid high demand, many authorised dealers had already started charging premium on some of the hot selling brands as buyers notably growers of wheat, rice, cotton and other crops were not ready to wait for one to two months for car delivery.

Total car sales in October 2009 recorded at 11,110 units as compared to 8,862 units in September 2009. The overall car sales rose by 20.54 per cent during July-October 2009 to 34,553 units as compared to 28,655 units in the corresponding period of 2008.

The car sales may further improve in coming months as PSMCL rolled out five new models of Suzuki Swift in October 2009.

Figures released by Pakistan Automotive Manufacturers Association (PAMA) revealed that Indus Motor Company (IMC), the makers of Toyota Corolla, sold 3,951 units in October as compared to 2,655 units in September 2009, while its overall sales during July-October 2009 stood at 12,902 units as compared to 4,824 units.

IMC had an advantage of selling its cars to many government departments.

Honda City sales in October was recorded at 670 units as compared to 639 in September 2009 while its overall sales during July-October 2009 fell slightly to 2,625 units from 2,669 in the same period of 2008.

Honda Civic is struggling as its sales during July-October 2009 fell to 1,725 units from 1,901 units in the same period of 2008 while its sales in October also dropped to 417 from 431 units in September 2009.

A total of 1,201 Cultus was sold in October as compared to 975 in September but total sales in July-October 2009 plunged to 4,053 from 4,875 units in the same period of 2008.

Alto sales in October surged to 1,265 units from 1,003 in September while total sales in July-October 2009 stood at 3,630 from 3,512 in the same period of 2008. Mehran’s sale in October went up to 2,324 units from 1,798 in September and overall sales in July-October rose to 7,482 units as compared to 7,067 in same period of 2008.

Daihatsu Cuore sales improved slightly in October to 425 units from 409 in September 2009 but in July-October 2009 sales fell sharply to 1,544 units from 3,344 units in the same period of 2008.

Car sales have been showing signs of recovery from April 2009 after cut in prices owing to removal of five per cent federal excise duty, positive economic indicators, revival of confidence among buyers etc.

It cannot be ascertained yet whether customers will maintain their buying spree in November or their sentiments may get hurt in view of deteriorating security situation.

Like every year, December remains bearish in terms of demand as most of the buyers wait to buy car in January because of change of year.