Business

Car sales jump 14% to 213,119 units

Improving macro-economic growth, lower financing rates among reasons

Our Correspondent July 12, 2017

Although its total sales declined, the company focus remained on production of higher margin Toyota Fortuner, which has shown stellar growth of 128% year-on-year. PHOTO: REUTERS

KARACHI: Locally assembled car sales (including Light Commercial Vehicles, Vans and Jeeps) jumped by 14% to 213,119 units (excluding Punjab taxi scheme) in fiscal year 2016-17 (FY17) ending on June 30, 2017, according to the data compiled by Pakistan Automotive Manufacturers Association (PAMA).

Improving macro-economic growth, lower financing rates and newer models introduced by auto companies contributed to continuing growth, according to a Topline Securities report.

Auto sales jump to 20,720 units, up 21.5%

Sales of Pak Suzuki Motor Company (PSMC) have increased by 17% year-on-year (excluding taxi scheme) in FY17 due to strong sales of Wagon-R, which increased by 37% year-on-year. The introduction of a newer model of Cultus is expected to further support the company sales.

Sales of Honda Atlas Cars (HCAR) outperformed peers, posting 52% year-on-year growth due to successful introduction of new Civic model and introduction of new SUV variant BR-V in FY17.

Indus Motors (INDU) - the makers of Toyota Corolla - sold 59,911 units in FY17, down 6% year-on-year. Although its total sales declined, the company focus remained on production of higher margin Toyota Fortuner, which has shown stellar growth of 128% year-on-year. Analysts say buyers are postponing their purchase of Toyota Corolla as they are waiting for the widely anticipated facelift of Corolla.

Truck and bus sales of PAMA member companies in FY17 remained strong, growing 31% year-on-year. Topline report said that this trend will continue due to better economic growth, lower financing rate and change and enforcement of maximum load limit per truck on Pakistani National Highways by National Highway Authority.

Auto industry seeks tax relief at retail stage

Two and three wheeler sales in FY17 grew strongly 19% year-on-year due to rising disposable income of lower middle class, the report added.

Published in The Express Tribune, July 12^th, 2017.

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