KARACHI: Sales of locally assembled automobiles (including light commercial vehicles LCVs, Vans and Jeeps) have jumped to 148,216 units in the first eight months (Jul-Feb) of fiscal year 2015-16, up 45% compared to 102,491 units in the same period last year, according to Pakistan Automotive Manufacturers Association (PAMA) data.
“The increase in auto sales is linked to growing levels of auto financing due to 42-year low interest rates, Punjab taxi scheme, improving law and order situation and overall improvement in economic situation in the country,” Topline Securities reported on Thursday.
Car sales continue to shoot up
Correcting its earlier estimates, Topline said that it now forecast local car sales to grow at 15% in fiscal year 2015-16 to reach 206,777 units. This would be a lower growth compared to the earlier estimates due to completion of Punjab taxi scheme in February 2016 and decline in Honda Civic volumes in anticipation of the new model.
Automobile sales in February 2016 declined to 15,874 units, down 8.5% compared to 17,356 units in February 2015.
Amongst individual companies, Pak Suzuki (PSMC) sales increased by 71% year on year to 91,608 units in first eight months of fiscal year 2015-16 primarily due to the Punjab government’s taxi scheme.
The company’s volumes decreased by 16% year on year (-34% month on month) in February 2016 to 8,420 units primarily due to completion of the scheme.
Indus Motor (INDU) sold 41,723 units in first eight months (Jul-Feb) of fiscal year 2015-16 compared 34,375 units in the same period last year.
In February 2016, INDU sales stood at 5,275 units, up 4% . On month on month basis, sales decreased by 12% due to early buying in the month of January owing to new-year registration phenomenon.
It is important to note that delivery time for the new Corolla model is still hovering in the range of two to four months depending on the variant.
Auto industry enjoys unequaled run of success
Atlas Honda Cars (HCAR) sold 15,793 units in in first eight months (Jul-Feb) of fiscal year 2015-16 compared to 14,041 units in the same period last year. In February 2016, HCAR sold 2,168 units, down 3% year on year (-28% month on month).
“We believe that Honda City remained the major contributor in this growth,” the report added.
The volumes of Honda Civic are expected to dry out in coming months in anticipation of the new model expected either late this year or early next year.
Published in The Express Tribune, March 11th, 2016.
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