KARACHI, Aug 11: The entire auto sector showed a mixed sales performance in July 2009 as compared to same month of 2008.

Sales of cars, bikes, buses and tractors went up but trucks and light commercial vehicles (LCVs) posted decline.

A total of 7,614 cars were sold in July 2009 as compared to 4,744 units in July 2008, showing some revival in buying sentiments of new car buyers. Car sales have been showing recovery since April 2009.

Sale of Honda Civic, Honda City and Toyota Corolla stood at 454, 686 and 3,124 units as compared to 400, 625 and 298 units in July 2008.

Sale of Suzuki Cultus, Alto and Mehran was recorded at 909, 629 and 1,377 units as compared to 653, 425 and 1,339 units. Hyundai Santro and Daihatsu Cuore sales fell to 17 and 331 units from 27 and 918 units, respectively.

Mohammad Sohail of Topline Securities linked the rising sale of cars to reduction in car prices, stability in economic indicators and slight improvement in security situation that compelled the consumers to buy new cars.

This recovery in sales has arrived despite the fact that only few cars are now being sold through bank financing and leasing and a majority of the buying is done through cash.

Syed Atif Zafar of JS Research said auto sales (Cars + LCVs) for the month posted an impressive growth of 33 per cent year on year basis to 9,896 units. He was of the view that impressive growth is misleading as production phase out of Corolla in the corresponding month of last year has deceived growth.

If Corolla is removed, auto sales are actually down by five per cent YoY. Similarly, car sales are up only one per cent YoY, relative to 60 per cent if Corolla sales are included.

He said sale on month to month basis has increased mainly due to removal of five per cent FED on 850 CC and above segments and reduction in prices by Pak Suzuki on below 850 CC segment.

Though car sales are showing a positive momentum, a lot more has to be achieved to turn bullish on the sector. Though elimination of FED has been warmly welcomed, monetary easing would be the key to stimulate car sales.

He expected 12 per cent growth in car sales on the back of declining interest rate scenario and low base effect.

Sale of tractors (Fiat and Massey Ferguson) surged to 4,033 units in July 2009 as compared to 3,525 units in July 2008. Senior Executive Director Millat Group, Sohail Bashir Rana, said that farmers got cash in hand after increase in wheat support price that is why they resorted to buying new tractors. He said out of total tractors sales, the share of cash buying stands at 60 per cent while purchasing through Zarai Tarraqiati Bank Limited and other sources ranges between 35-40 per cent.

BIKES, RICKSHAWS: Overall sale increased to 53,666 in July 2009 as compared to 46,105 in July 2008 despite fluctuating trends in sales of various assemblers. Sale of Honda, Yamaha and Suzuki bikes was 35,000, 10,606, 1,349 units as compared to 35,020, 3,463 and 1,570 units. Sohrab, Hero and Ravi sales were recorded at 565, 3,000 and 1,731 as compared to 586, 2,291 and 1,236 units. Sohrab and Saagar tri-wheeler sales were 298 and 752 as compared 144 and 244 units.

Truck sales plunged to 278 units from 347 while bus sales surged to 60 units from 52 units.

Director Sales and Marketing Hinopak Motors Limited Mohammad Irfan Shaikh said that truck sales were mainly dependent on trading activities and decline in sales showed that business activities were not satisfactory.

Another reason for decline in truck sales was rise in prices by 30-40 per cent in the current year. Sales of jeeps declined to 71 units from 211 while pick ups sales fell to 1,265 units from 1,538 units.