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Auto sales witness substantial growth of 21pc

The Nation Newspaper Pakistan


Thursday, January 12, 2012



Auto sales witness substantial growth of 21pc

By: Our Staff Reporter | January 12, 2012 | 0 Comments



LAHORE - Auto sales of the industry witnessed a substantial growth of 21 percent YoY to 81,645 units in 1HFY12 as against the sales of 67,693 units in the corresponding period last year.  Pakistan Automotive Manufacturers Association (PAMA) has just released local automobile industry’s sales and production numbers for the month of December’11.

In experts view, beside the low base effect, the substantial volumetric growth can be attributed to the incentive announced by the government to local auto manufacturers in terms of removal of Special Excise Duty (SED) of 2.5 percent on imported and manufactured vehicles coupled with reduction in General Sales Tax (GST) from 17 percent to 16 percent.

As per the data, on monthly basis, industry sales have declined by 6 percent MoM to 11,185 units in the month of December’11 in comparison of 11,884 units in the previous month. The main reason behind the fall in industry sales was 92 percent MoM decline in sales of Honda Cars and flat sales of Indus Motor Company. Honda Atlas Cars has been facing parts shortage since October because of floods in Thailand from where the company receives the completely knocked down (CKD) kits.

Muhammad Sarfraz Abbasi observed that Pak Suzuki Motor Company Limited (PSMC) has witnessed a 32 percent YoY growth to 50,718 units in 1HFY12 as against the sales of 38,320 units in same period last year. Highest growth was observed in the sales of Suzuki Swift of 121 percent YoY to 3,247 units as against 1,472 units in same period last year. Suzuki Cultus under the domain of 1000cc segment witnessed a handsome 26 percent YoY jump in its sales to 7,034 units in comparison of 5,599 units in same period last year, followed by Suzuki Alto whose sales also experienced a massive 18 percent growth to  6,779 units versus 5,762 units same period last year. Above all, Suzuki Mehran and Suzuki Bolan both segments posted growth of 47 percent YoY and 36 percent YoY respectively, primarily because of Government of Punjab’s yellow cab scheme.   

Indus Motor Company Limited (INDU) witnessed a 7 percent YoY growth in sales to 24,066 units in 1HFY12 as against 22,408 units in same period last year. Hilux, under pick up segment led the growth in sales of the company with a gigantic 195 percentYoY to 2,162 units as against 732 units in same period last year. Toyota Corolla posted upsurge in sales by 7 percent YoY to 20,020 units as against 18,717 units in same period last year. Cuore remained as the only segment of the company whose sales experienced a substantial decline of 36 percent YoY to 1,884 as against sales of 2,959 units in same period last year.

Honda Atlas Cars Pakistan Limited (HCAR) has showed a biggest decline in its sales during the month of December ’11 as sales during the month declined by a substantial 92 percent MoM to just 71 units as against the sales of 897 units in the month of November ’11. The main reason behind the decline in sales of was suspended operation on the back of unavailability of the parts owing to floods in Thailand from where the company imports CKD kits. As for the as the cumulative 6MFY12 performance is concerned, due to drastic decrease in production of Honda Civic and Honda City which fell by a substantial 21 percent and 9 percent respectively, the company has showed flat sales as its total sales during the 1HFY12 reached to 6,881 units in comparison of 6,875 units in 1HFY11.

As far as the market Share is concerned, Pak Suzuki Motor Company leads the market with 57 percent Market share followed by Indus motor company and Honda Atlas Cars with 30 percent and 10 percent market share in 1HFY12.
It is worth mentioning, that local car assemblers has recently raised the prices in the range of PKR20,000 to PKR30,000 on the various models to mitigate the losses aimed foreign exchange. However, in a situation when producers are unable to deliver the cars on scheduled time we believe this would lead consumer to switch their buying from local assembled to imported vehicles.

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