KARACHI: Sales of locally-assembled cars rose by 77 per cent to 29,168 units during the first two months of this fiscal year compared to 16,466 units in the corresponding period last year.

Buyers remained eager to have Toyota Corolla and Suzuki vehicles thus pushing up overall sales. However, Honda Civic sales fell to 1,146 units from 1,218 due to stiff competition with rivals.

According to Pakistan Automotive Manufacturers Association (PAMA) figures, buyers lifted 8,840 Toyota Corolla in July-August period compared to 4,188 units, while Honda City sales went up by 58pc to 3,037 units from 1,921 units. Suzuki Swift sales grew by 9.24pc to 674 units from 617 units.

In 1,000cc category, Suzuki Cultus and Suzuki Wagon R sales jumped by 9.2pc and 67pc to 2,254 and 1,184 units from 2,064 and 709 units.

In 800cc segment, Suzuki Mehran and Suzuki Bolan sales registered 47.5pc and 233pc growth to 5,622 and 6,409 units from 3,805 and 1,922 units.

Another vehicle under Punjab Taxi Scheme (Suzuki Ravi) sales recorded phenomenal growth of 266pc to 6,238 units from 1,702.

Raja Murad Khan, Managing Director, Carmudi Pakistan said auto demand has gone up due to the rapid decline in international oil and commodity prices. As a result, car financing has also grown.

Due to high demand for latest car models and amended regulations permitting banks to provide financing for vehicles older than nine years old, auto loans posted a 20pc jump, up from 17.8pc the year before. Increased per capita income, improved agricultural sector and the kick start of the economy also contributed to the healthy growth in consumer credit, particularly in the auto sector, he said.

Given the right environment and low financing rates, the car financing industry would continue to grow, he hoped.

He added more and more people asking us about lease and financing options and it’s very healthy to see financial institutions come up with new offerings.

Muhammad Tahir Saeed at Topline Securities attributed booming car sales to overall improving economic conditions, high demand of Corolla and Punjab Taxi Scheme.

After devaluation of yuan last month, Asian currencies fell in the range of three to eight per cent against the US dollar including the rupee. Thus, weak currency outlook likely to erode margins of Pakistan auto assemblers, he said.

Published in Dawn, September 11th, 2015

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