Automobile sales accelerate 19%

Honda, Indus Motor sales plummet in November as supply from Thailand slows.

KARACHI: Automobile sales accelerated by 19% during July to November 2011 as government incentives announced in the budget steers the industry on the path of growth.

Sales stood at 62,353 units in the first five months of fiscal 2012 compared with 52,200 units posted in the same period last year, according to data released by the Pakistan Automotive Manufacturers Association on Monday.

The government removed special excise duty of 2.5% on imported and manufactured vehicles coupled reduction of general sales tax from 17% to 16%.

Sales of market leader Suzuki surged 33% during the period under review led by its low-priced Mehran which sold 14,134 units, almost half of the company’s entire revenue.

Suzuki Swift witnessed the highest growth in the industry of 121% to 2,802 units against 1,270 units in the same period last year.

Indus Motor sales crawled up 3% to 20,932 units during July to November against 20,375 units in same period last year.

Toyota Corolla, the country’s highest selling car, posted an upsurge of 4% to 17,867 units against 17,149 units in same period last year. Highest growth was witnessed in Hilux which posted a gigantic leap of 132 % to 1,342 units against 578 units in same period last year.

Cuore, the company’s dying breed, was the only car that witnessed a decline of 35% to 1,723 against sales of 2,648 units in same period last year. The company has decided to pull the plug on the only car competing with four Suzuki cars in the 1000cc and below category.

Honda Atlas posted modest growth of 9% YoY to 6,790 units against sales of 6,247 units.

Buyers wait for new year

Sales declined to a five-month low in November alone as buyers opted to wait a month and get vehicles registered in the new calendar year, which raises the value of the car at time of resale.

Indus Motor and Honda sales plummeted by 17% in November due to the year-end factor and lower production due to supply disruption from recent floods in Thailand, said Global Securities analyst Sarfaraz Abid.

Meanwhile, Suzuki remained unhurt and witnessed an uptick of 15% to 7,861 units.

Sales are expected to stay under pressure as the year-end effect kicks in while lower production by assembler’s dependant on imported parts could also lead to lower sales in December, said Abid.

Published in The Express Tribune, December 13^th, 2011.