Automobile industry: Sales grow 17% with Suzuki in the front seat
Honda production at a standstill for second straight month.
KARACHI:
Car sales rose 17% in the first seven months of fiscal 2012 on the back of higher demand and Punjab’s yellow cab scheme.
Sales stood at 85,011 units in the first seven months of fiscal 2012 against 72,580 units sold in the same period of the preceding year, according to data released by Pakistan Automotive Manufacturers Association.
Honda’s production stood at a standstill for the second straight month in January, however, production is expected to be back on track at the end of February as its Lahore plant will restart operations. Honda Atlas Cars has been facing shortage of parts since October because of floods in Thailand from where the company imports part and then assembles them.
Market leader Pak Suzuki Motor Company witnessed 39% growth in sales during July 2011 to January 2012 with Mehran leading the way with 40% growth to 19,375 units.
Suzuki’s Mehran and Bolan witnessed healthy growth during the period under review due to Punjab’s yellow cab scheme. The provincial government aimed to deliver 7,500 cabs to successful applicants in 2011.
Suzuki Swift sales almost doubled to 3,847 units during against 1,972 units in the same period last year.
Indus Motor Company witnessed 4% growth in sales to 29,462 units during the period under review against 28,293 units in the same period last year.
Toyota’s Hilux, under the pick-up segment, grew a gigantic 195% to 2,162 units against 732 units in the same period last year.
The country’s highest selling car Toyota Corolla grew 5% to 24,885 units against 23,740 units in the same period last year. Cuore was the only segment of the company whose sales experienced a substantial decline of 36% to 2,245 units.
The company announced earlier that manufacturing of Coure would stop before June 30, 2012 on account of its high cost of production.
Overall, Honda Atlas Cars Pakistan Limited posted a decline of 20% to 6,991 during the period under review with both brands Civic and City witnessing a downward trend in sales.
Tractor industry continued to suffer from lower production in January, however, major crop season resulted in a slight improvement in sales as assemblers restricted their production during the period. Similarly, sales have been hit by 74% for Agritech Limited and 61% for Millat Tractors during the period under review.
However, the industry will see better days ahead as general sales tax has been reduced to 5% from 16% in 2012.
Published in The Express Tribune, February 11th, 2012.
Car sales rose 17% in the first seven months of fiscal 2012 on the back of higher demand and Punjab’s yellow cab scheme.
Sales stood at 85,011 units in the first seven months of fiscal 2012 against 72,580 units sold in the same period of the preceding year, according to data released by Pakistan Automotive Manufacturers Association.
Honda’s production stood at a standstill for the second straight month in January, however, production is expected to be back on track at the end of February as its Lahore plant will restart operations. Honda Atlas Cars has been facing shortage of parts since October because of floods in Thailand from where the company imports part and then assembles them.
Market leader Pak Suzuki Motor Company witnessed 39% growth in sales during July 2011 to January 2012 with Mehran leading the way with 40% growth to 19,375 units.
Suzuki’s Mehran and Bolan witnessed healthy growth during the period under review due to Punjab’s yellow cab scheme. The provincial government aimed to deliver 7,500 cabs to successful applicants in 2011.
Suzuki Swift sales almost doubled to 3,847 units during against 1,972 units in the same period last year.
Indus Motor Company witnessed 4% growth in sales to 29,462 units during the period under review against 28,293 units in the same period last year.
Toyota’s Hilux, under the pick-up segment, grew a gigantic 195% to 2,162 units against 732 units in the same period last year.
The country’s highest selling car Toyota Corolla grew 5% to 24,885 units against 23,740 units in the same period last year. Cuore was the only segment of the company whose sales experienced a substantial decline of 36% to 2,245 units.
The company announced earlier that manufacturing of Coure would stop before June 30, 2012 on account of its high cost of production.
Overall, Honda Atlas Cars Pakistan Limited posted a decline of 20% to 6,991 during the period under review with both brands Civic and City witnessing a downward trend in sales.
Tractor industry continued to suffer from lower production in January, however, major crop season resulted in a slight improvement in sales as assemblers restricted their production during the period. Similarly, sales have been hit by 74% for Agritech Limited and 61% for Millat Tractors during the period under review.
However, the industry will see better days ahead as general sales tax has been reduced to 5% from 16% in 2012.
Published in The Express Tribune, February 11th, 2012.