KARACHI: Sales of locally assembled vehicles, including jeeps and light commercial vehicles, jumped to 18,798 units in September 2017, up 17% compared with 16,060 units in the same month of 2016, according to the latest data released by the Pakistan Automotive Manufacturers Association (PAMA).
“These numbers are in line with estimates given fewer working days in September 2017 due to Eidul-Azha holidays compared to August 2017,” a Topline Securities report said.
Sales figures for September 2017 depict a 15% decline when compared with 22,094 units sold in August 2017.
Cumulative industry sales during the first three months (July to September) of fiscal year 2017-18 exhibited a 27% growth to reach 60,470 units. The report said that the first three months’ sales are on-track in terms of reaching the predicted 236,000 unit sales in the current fiscal year.
Looking at original equipment manufacturers (OEMs) individually, Honda Atlas continued to outperform peers with sales increasing 24% year-on-year in September due to success of the new models of Civic and BRV.
On a month-to-month basis, however, sales lagged by 27% as Honda’s plant was shut down for a longer period (compared to others) due to clumping of Eid and Muharram holidays. In first quarter of fiscal year 2018, Honda’s sales grew 56% to 12,606 units.
Pak Suzuki’s sales increased 22% year-on-year for low-price models Mehran (+43% year-on-year), WagonR (+60% year-on-year), and Cultus (+33% year-on-year) all exhibited healthy growth, with cumulative first quarter sales of 32,777, up 30% year-on-year.
Indus Motor, the makers of Toyota Corolla, lagged behind peers with a meagre 4% year-on-year growth in September 2017 and 5% growth in first quarter of FY18 due to production constraints. Overall, the company sold 15,087 units in the first three months of FY18.
Tractor sales continue to exhibit an upward trajectory with sales growing by 74% year-on-year in September 2017.
Lower General Sales Tax (GST) on tractor purchase, fertiliser cash subsidy and Rs2 billion subsidies for farmers on tractor purchases announced by Sindh are expected to support tractor sales in coming months, the report added.
Truck and bus sales of PAMA member companies in September 2017 remained strong, growing by 37% year-on-year while first quarter sales rose 23% year-on-year.
This trend may continue due to on-going major infrastructure projects under the China-Pakistan Economic Corridor (CPEC) that are expected to improve road connectivity in the country.
Published in The Express Tribune, October 11th, 2017.