KARACHI:
The automobile sector kept the foot on the gas pedal as car sales rose 27 per cent in the first quarter of financial year 2012.
Sales were very low last year due to the floods, which made this year’s numbers quite attractive, said Summit Capital analyst Sarfraz Abbasi. The economy has also improved since last year making selling and buying a slightly easier job, added Abbasi.
Sales rose to stand at 38,065 cars from July to September 2011 against 30,030 units sold in the same period last year, according to data released by Pakistan Automotive Manufacturers Association on Monday.
Growth was primarily led by market leader Pak Suzuki Motor Company as its sales jumped by 49% to 21,829 units.
The second highest selling car, Suzuki Mehran, picked up the pace and narrowed the gap with the highest selling car, Toyota Corolla, during the period under review. Mehran sales increased by 57% to 8,415 while Corolla sales went up slightly by 3% to 10,682 units.
However, recent price increases by the automobile sector may lead to a decline in sales in the second quarter, said Abbasi.
Tractor woes continue
The production of Fiat tractors by Al Ghazi Tractors remained suspended for the second straight month in September due to unsold units at the factory and country-wide dealership network.
The tractor industry has cited imposition of 16 per cent general sales tax as the reason for the slowdown in sales. Production cost has soared to such a level that selling a tractor has become a tough job, Abbasi said, adding that prices have crossed the purchasing power of farmers.
Tractor sales plummeted by 70% to 4,215 units during the period under review against 13,931 units in the same period last year, data shows.
The government needs to step in and save the tractor industry by giving assemblers and farmers some kind of incentive by removing taxes or announcing a subsidy, said Abbasi.
Published in The Express Tribune, October 11th, 2011.
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