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Car sales drop by 32.3pc

Published Nov 13, 2012 12:22am


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– File Photo

KARACHI, Nov 12: Barring Honda Civic, City and Suzuki Swift, sales of locally assembled cars plunged by 32.3 per cent in July-October 2012-2013 as compared to same period of 2011-2012.

Sales of Toyota Corolla and Suzuki Mehran, Cultus, Bolan and Liana remained in red in the last four months of the current fiscal year as compared to same period of last fiscal year. The overall sales figures continued to face the brunt of phasing out of two popular cars – Suzuki Alto and Daihatsu Cuore.

Figures released by Pakistan Automotive Manufacturers Association (PAMA) revealed total sales of 34,990 units in July-October 2012-13 as compared to 51,755 units in the same period of last financial year. Corolla sales plunged to 9,187 units from 15,175 units followed by Cultus to 4,317 from 4,997, Mehran to 9,435 from 11,414, Bolan to 3,483 from 5,511 units and Liana to 86 from 168 units.It seems that buyers shifted their focus towards Honda’s Civic and City models in the last four months thus slightly improving their sales at 2,290 and 3,719 units in the last four months as compared to 2,246 and 3,647 units respectively. Suzuki Swift sales also crawled up to 2,402 from 2,328 units.

The first four months of the fiscal year also depicted a plunge in overall car production to 37,196 units from 49,329 units. However, production of Honda City rose to 4,699 units from 3,647 units followed by an increase in Swift production to 2,469 from 2,282 units.

Zeeshan Afzal at Top Line Securities said that besides termination of Cuore and Alto, the overall ‘sales were also hit by completion of Punjab’s taxi scheme’ in which Pak Suzuki Motor Company Limited provided Mehran and Bolan while the arrival of used cars also depressed the sales of locally produced cars.

Indus Motor Company senior general manager marketing Ali Asghar Jamali said the company is likely to observe 15-16 non production days (NPDs) in December as compared to 11-12 in the current month. In July IMC observed seven NPDs followed by four to five in August, 9 in September and 12 in October.

The sales scenario will remain depressed owing to rising number in used car arrivals, he said. However, he recalled that the last four months of 2011 were not bad as compared to current year.

An official in Pak Suzuki Motor Company Limited said that the company has already been feeling the pinch of ban on CNG cylinders and kit imposed in December 2011 as majority of vehicles produced by it were fitted with gas kits and cylinders.


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Comments (12) Closed

Khan Bhai Nov 14, 2012 07:52am
Dear Raza, It is very nice to use high quality imported cars as compared to locally assembled sub standard cars. Pak Suzuki and Indus Motors were looting money in advance and deliver cars after 1 year, was it justice with people. Like you people support Monopolistic business companies.
Black Swordsman Nov 13, 2012 07:16pm
Well to me at least the answer is pretty straightforward; automakers should develope niches in the market In order to balance the fall in demand of it's current offerings. A corolla or a civic are decent cars and all but, TBH, looking at the same stuff day-in-day-out just becomes flat out boring! I bet cars like The Toyota GT86 or the Honda Civic Type-R would be very well received by Joe public, in particular the youngsters.
beyond the truth Nov 13, 2012 05:43pm
local manufacturers should decrease prices of their products to make them competitive with the imported ones to pick up the the sales of their products.
Raza Nov 13, 2012 09:30am
Govt. of Pakistan with its policies is killing local Auto Industry by allowing import of used cars as well as allowed Yamaha to import and build motorbikes on a concessionary duty. This action increase the numbers of jobless people and more robberies, theft and lawlessness. Great Ideas of killing the country
Raza Haider Nov 14, 2012 06:44am
Raza.... I agree with your views on the employment issue. But there is another, perhaps much larger, group of people called 'consumer'. These companies have a history of exploiting customers in the past. There were issues of deliberate production gaps in 2003-2007 which gave birth to the 'on' market. People paid upto Rs. 300,000 in on money. For what? There are quality issues. Mehran, for instance, is rubbish! The basic model does not come with a seat belt!! And this piece of metal costs over Rs. 0.5m. Is this not robbery? It is probably government's own failure at not being able to control the manufacturers. But the fact remains, that these people have enjoyed field days for years now. Time for some accountability.....
Sohaib Nov 14, 2012 07:38am
Totally agree with Zishi and sajjad, it doesn't make any sense that you are selling Mehran (a teen daba) for 600K. Previously they were just monopolizing the industry and poor souls had no option but to rather buy this shit. With now competition on the go, if not sooner but in a few more months we can hope they will be forced to drop prices.
shan Nov 14, 2012 05:18am
raza i think you need to recheck the facts
Zishi Nov 13, 2012 01:18pm
Local manufacturers have been ripping us off for many years now and its time for them to compete and bring the prices down. What is the point of manufacturing it locally if it is more expensive for consumer than an imported car.
Kumar Nov 13, 2012 01:54pm
imported cars are much better than local cars
BNS Nov 13, 2012 11:26pm
Its time the local manufacturers should grow up and start competing on fair grounds. Unless local manufacturers improve quality of their products the sales will, and should, be on the downfall. Buyers do not want to throw away their money on low quality but expansive locally manufactured cars. Things start going wrong even within first year. Even a 10-15 years old reconditioned car works way better than abrand new local car.
Khan Nov 13, 2012 06:18pm
Every consumer should have a choice in buying their vehicles since its their own money that is being spent ... Instead of creating a monopoly local Auto industry should compete by improving their quality, they should ponder as to why people prefer old cars instead of buying their brand new locally built cars, Is it the price difference or the quality or is it both. Also, It would be nice if GoP / CBR can provide links to their import rules in simplified manner as due to its complexity common people are not able to take advantage of these rules. I for instance want to gift a used car to my parents, from the UK but have no idea how much it costs and what the procedure is .. recently read a notification that HEV are exempted from tax but some one said that notification was revoked.
sajjad Nov 13, 2012 11:52am
Govt has been very much soft on local manufacturers for years now and its time that consumers should be given a choice to buy imported cars which yeild more earning to government in the form of duties and other taxes. Local manufacturers should instead be able to compete in terms of price and quality with atleast second hand imported cars.