Parking lot. SOURCE: REUTERS
Auto sales in May were slightly higher than expectations. The increase in sales was led by higher-than-expected sales by Pak Suzuki Motor Company (11,100 units compared with expected 10,400 units) and Indus Motor Company (4,900 units compared with expected 4,400 units), Topline Securities commented on Monday.
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Honda Atlas Cars reported for the first time its BRV variant sales numbers as the company sold 527 units in April and 876 units in May 2017. Total sales for the company in May 2017 came in at 4,660 units, showing a strong growth of 86% year-on-year and 32% month-on-month.
In the first 11 months of the current fiscal year 2016-17, the company’s sales grew 53% year-on-year compared to the industry’s growth of 16% (ex-Punjab taxi scheme sales).
Indus Motor Company’s sales shrank 11% year-on-year and 13% month-on-month to 4,929 units due to lower Corolla sales, which declined 19% year-on-year and 11% month-on-month.
It was due to the company’s strategy to boost light commercial vehicle/sports utility vehicle production while decreasing the output of Corolla units till the completion of de-bottlenecking.
Pak Suzuki Motor Company recorded stellar sales, depicting a growth of 24% year-on-year and 21% month-on-month.
Demand for Wagon R and new Cultus/Celario remained strong with Wagon R posting highest-ever sales of 1,927 units, up 172% year-on-year and 30% month-on-month while Cultus sales stood above 2,000 units.
Auto sales, including light commercial vehicles and jeeps, continued to register a robust trend in the first 11 months of the current fiscal year with growth of 19% year-on-year excluding the tax scheme.
Tractor sales again exhibited an upward trajectory with demand growing 65% in the first 11 months.
Lower retail prices due to reduced general sales tax, improving crop yields and continuation of fertiliser subsidy to address liquidity concerns of the farmers were expected to improve the overall tractor demand in the near future, the report added.
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Moreover, in the next fiscal year 2018, the Sindh government has set aside Rs7 billion for improving agriculture produce, including Rs2 billion in subsidies for the farmers on tractor purchase.
Truck and bus sales of PAMA member companies in the first 11 months of FY17 remained strong.
Analysts expect the growth in sales will continue, fuelled by increased demand under the China-Pakistan Economic Corridor and infrastructure-related activities.
Published in The Express Tribune, June 13th, 2017.
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