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Auto sector witnesses 21 percent growth in first half


Auto sector witnesses 21 percent growth in first half
JANUARY 12, 2012
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Auto sales of the industry witnessed a substantial growth of 21 percent on year-on-year basis to 81,645 units in the first half of FY12 as against the sales of 67,693 units in the corresponding period last year.

Pakistan Automotive Manufacturers Association (PAMA) has released local automobile industry's sales and production numbers for the month of December 2011.
"Besides 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", Sarfraz Abbasi, an analyst at Summit Capital said.
Moreover, on monthly basis, industry sales have declined by six percent on month-on-month basis to 11,185 units in the month of December 2011 in comparison of 11,884 units in the previous month.

The main reason behind the fall in industry sales was 92 percent on month-on-month basis 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, he said.
Pak Suzuki Motor Company Limited (PSMC) has witnessed a 32 percent year-on-year growth to 50,718 units in the first half of FY12 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 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 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 and 36 percent respectively, primarily because of Government of Punjab's yellow cab scheme.
Indus Motor Company Limited (INDU) witnessed a 7 percent growth in sales to 24,066 units in the first half FY12 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 percent to 2,162 units as against 732 units in same period last year.

Toyota Corolla posted upsurge in sales by 7 percent 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 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 to just 71 units as against the sales of 897 units in the month of November 2011.
The main reason behind the decline in sales was suspended operation on the back of unavailability of the parts owing to floods in Thailand from where the company imports CKD kits.

As far as the cumulative six months of FY12 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 first half of FY12 reached to 6,881 units in comparison of 6,875 units in the first half FY11.
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 the first half FY12 respectively.



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