KARACHI: Local car assemblers (including LCVs, Vans and Jeeps) sold 23,700 units in January 2018, up 13 per cent year-on-year and 23pc sequentially as start of the year was generally a robust period for auto sales.
The change in import procedure, demand from online ride-hailing services as well as availability of auto finance at lower rates contributed to strong demand in outgoing month. This was the highest monthly unit sale recorded for month of January. Cumulatively, industry sales during the seven months of fiscal year 2018 posted 29pc growth to 147,838 units.
According to Rai Basharat at Top Line Securities, Pak Suzuki Motor Company Limited (PSMCL), continues to lead the pack as majority of used car imports fall under lower engine capacity segment. PSMCL saw robust growth where sales rocketed 29pc YoY as price conscious models Mehran, up 22pc, followed by WagonR 100pc, and Cultus 15pc all posted robust sales growth. 7MFY18 sales were up 32pc YoY for PSMC to 69,224 units.
Sale of Honda Atlas Cars clocked in at 3,213 units staying up 33pc YoY, (down 28pc MoM) due to strong order book. The 7MFY18 sales grew 50pc YoY to 24,780 units due to success of new models Civic/BRV and recently revamped City.
He said Toyota’s Indus Motors Company lagged behind peers with decrease of down 3pcYoY and 14pc MoM as it continues to face capacity constraints, though 7MFY18 units sales are up 6pc YoY.
According to figures of Pakistan Automotive Manufacturers Association (PAMA), tractor sales continued their upward trajectory with sales growing by 5pc YoY in Dec 2017. Millat Tractor outperformed with 53pc YoY growth. During 7MFY18 tractor sales reached 32,310 units up 54pc YoY. He expected that lower GST on tractor purchase, fertiliser cash subsidy, along with Rs2bn subsidy for farmers on tractor purchase recently announced in FY18 Sindh provincial budget would improve farmers purchasing power and thus support overall tractor sales going forward.
Truck and bus sales of PAMA member companies in December 2017 remained strong, growing by 21pc YoY, while during 7MFY18 sales rose 18pc YoY. He said the rising sales trend would continue fueled by CPEC, higher road connectivity, low financing rate, robust growth in LSM sector and change and enforcement of axle load limit per truck on highways. Motorcycle/three-wheeler sales for December 2017 grew by 9pc YoY, due to rising disposable income of lower middle class, while 7MFY18 sales were up 19pc YoY.
Published in Dawn, February 13th, 2018
For more live updates, follow Dawn.com's official news Instagram account @dawn.today