KARACHI, Feb 22: The new year started with a good note for the auto sector as sales of cars, bikes, light commercial vehicles (LCVs), buses and trucks surged by 8.6 to 153 per cent in January 2002 as compared to December 2001.

However, tractor (Al-Ghazi and Millat) is the only exception whose sales marginally declined by 1.8 per cent.

People bought 54 per cent more cars in January 2002, touching sales to 3,893 units from 2,523 units in December 2001. Among the main gainers in sales were Daihatsu Cuore to rise at 618 units last month from 206 units followed by 788 units of Suzuki Mehran from 619 units, 623 units of Suzuki Cultus from 262 units, 536 units of Toyota Corolla from 339 units, 403 units of Honda City from 190 units, 242 units of Honda Civic from 228 units, 236 units of Suzuki Alto from 154 units and 218 units of Hyundai Santro from 210 units.

Suzuki Baleno had still been struggling to lure buyers as only 74 units were sold last month. The entire new look of Baleno introduced in the middle of February, almost same model available in India, may attract customers in coming months.

Kia Classic and Spectra sales dropped to 180 units from 252 units in December 2001. Nissan Sunny has so far failed to attract customers as its sales of only 13 units last month is enough to judge its demand and performance.

At a time of rising car jack up and snatching cases, leasing companies have come up with attractive packages coupled with full insurance of vehicles for customers. As a result, about 40 per cent cars are being sold through leasing.

Banks have also entered in car financing scheme after of State Bank’s approval last month. It will create a competition among leasing companies and banks. About 10 to 12 leasing companies are active in car financing out of 40 companies.

According to figures of Pakistan Automotive Manufacturers Association (PAMA), a total of 9,830 bikes (Honda, Suzuki and Yamaha) were sold in January 2002 as compared to 9,047 units.

Truck sales (Hinopak, Nissan, Mazda) stood at 108 units as compared to 67 units in December 2001. Similarly, a total of 114 buses of same companies were sold last month as compared to 45 units.

Sales of LCVs (Suzuki Potohar, Bolan and Ravi, Indus Hilux and Dewan Shahzore), surged by 32 per cent to 637 units from 481 units.

“These figures reflect the true picture of country’s economy, which is now coming out from the negative impacts of September 11 incidents and showing signs of recovery,” a leading assembler said.

He said there is definitely improvement on agriculture front but as far as tractor sales are concerned, assemblers are still awaiting for swift loaning facility from the Agriculture Development Bank of Pakistan (ADBP).

Sales of almost all vehicles have been under pressure since the September 11 tragedy in the US particularly in Northern parts of the country coupled with poor economic indicators during July- December 2001.

An assembler said that it seems that country’s economic indicators have improved from last month due to settling down of Afghan war and India-Pakistan issues followed by some tariff and quota concessions offered by the European Union (EU) on textile exports from January 1, 2002.

He said that pledges of donor agencies for more grants and aids and rising foreign exchange reserves up to five billion dollars from $3.2 billion prior to September 11 will further improve the country’s economic health.

He said buyers’ confidence has somewhat returned and sales are expected to go up marginally in coming months.