According to the latest numbers released by Pakistan Auto Manufacturers Association (PAMA), sales of locally assembled cars has showed an increment of 17% during the month of September. The number of units sold reached 18,798 vehicles versus 16,060 units during the same period last year. This figure includes the sales of jeeps and light commercial cars as well.
However, on a monthly basis, the numbers have shown a decline of 15% as car manufacturers sold 22,094 units during August 2017. One significant reason given by a securities company in its report suggests:
“These numbers are in line with estimates given fewer working days in September 2017 due to Eid-ul-Azha holidays compared to August 2017”
Total industry sales during the first quarter (July-September) of the current fiscal year 2017-18 stood at 60,470 units. Consequently, it resulted in registering a growth of 27% per annum. These numbers are expected to be in-line with the estimates given by industry analysts.
Honda Atlas led the way…Pak-Suzuki followed
Comparing the individual performance of original equipment manufacturers (OEMs), Honda Atlas managed to excel versus its competitors indicating sales growth of 24% YoY in September. The growth has primarily been associated with the popularity of its two new car models Civic and BRV.
Honda’s monthly performance suffered with sales down by 27% on a monthly basis as company’s plant remained closed due to Eid and Moharram holidays. However, the cumulative sales during first quarter of 2017-18 increased by a significant 56% reaching 12,606 units.
Pak-Suzuki secured the second position in terms of sales with an annual jump of 22% during September. Most of its low priced models managed to sell exceptionally well on a year on year basis:
- Mehran (43% growth YoY )
- WagonR (60% growth YoY)
- Cultus (33% growth YoY)
Cumulative car sales of Pak-Suzuki recorded a rise of 30% YoY during first quarter of current fiscal year with 32,777 units.
Another major player, Indus Motor remained sluggish, showing a minimal growth of 4% during September 2017 and only 5% during the first quarter of FY18 with total sales units of 15,087. The company showed lesser growth due to its limited production capacity.
Other vehicles such as tractors managed to outperform showing a gigantic growth of 74% YoY during the month of September. Some of the factors contributing to this jump were lower GST on tractor purchase, cash subsidy on fertilizer and Rs2 billion subsidy to farmers given by Sindh government on tractor purchase. Therefore, these factors will keep its future sales strong during the coming year.
Sales of trucks and buses also remained steady with a growth of 37% YoY during September this year and a cumulative growth of 23% during 1QFY18.
In the long run, car sales are expected to remain strong in the wake of continued infrastructural development by China Pakistan Economic Corridor (CPEC) with significant investment in road connectivity projects.