Business

Car sales slide down 13% to 47,645 units

Year-on-year decrease mainly due to conclusion of taxi scheme

Our Correspondent October 13, 2016

Year-on-year decrease mainly due to conclusion of taxi scheme. PHOTO: EXPRESS

KARACHI: Local car assemblers sold 47,645 units (including LCVs, Vans and Jeeps) in the first quarter (Jul-Sep) of fiscal year 2017, down 13% compared with the same period of last fiscal year, according to the Pakistan Automotive Manufacturers Association (PAMA).

Excluding taxi units, sales are up 12.6% year-on-year. “This was in line with expectations,” Topline Securities reported on Thursday.

Car sales hit speed bump in July

“Car sales are to remain robust in fiscal year 2017 despite conclusion of the Apna Rozgar Taxi Scheme. They may clock in around 213,000 units, an increase of 13% year-on-year (ex-taxi units),” the report predicted.

Pak Suzuki Motor Company (PSMC), which is expected to launch a new model, Celerio (1,000cc category), by the second half of 2017, seems to be in a much better financial position, the report said. Meanwhile, Indus Motors (INDU) is also witnessing continued demand for its flagship Toyota Corolla model.

PSMC - the largest carmaker in the country - sold 25,201 units in the first quarter of fiscal year 2017, showing a decline of 25% year-on-year. This is primarily because of lower sale of Ravi and Bolan variants due to the completion of the Punjab taxi scheme.

Indus Motor’s (INDU) sales reduced by 3% year-on-year as company sold 14,385 units in the first quarter of fiscal year 2017. Sales decreased by 13% year-on-year in September 2016. Sales of Corolla fell 4% year-on-year to 4,405 units, possibly due to the introduction of Honda Civic’s new model.

Car sales continue to accelerate

Sales of Toyota Hilux decreased 61% month-on-month to 318 units, due to expected launch of the new Revo variant this year.

Honda Atlas Cars Pakistan sold 8,059 units in first quarter of fiscal year 2017, showing an increase of 36% year-on-year. Sales for the month of September 2016 registered an increase of 38% year-on-year. However, due to extended holidays sales posted a decline of 13% month-on-month to 2,764 units.

Published in The Express Tribune, October 14^th, 2016.

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