Car sales decline for the first time this year

Suzuki’s lower segment falls behind rest of the pack.


Our Correspondent May 12, 2012

KARACHI:


Car sales declined for the first time this year in April, with the slowdown witnessed in sales of the low powered hatchback segment.


Sales of vehicles falling in the 1,300cc and above category increased 7% while those of in the 1,000cc and lower category fell 17%, according to data released by Pakistan Automotive Manufacturers Association on Friday.

Overall, car sales declined 8% to 13,360 units in April compared with 14,469 units sold in March, data shows.

The country’s largest automobile assembler witnessed a volatile month with sales of Alto, Bolan and Cultus declining while Mehran and Swift rose to mitigate the downward impact.

Star product Mehran gained 5% to 3,266 units during the period under review. Sales of Mehran have increased manifold due to Punjab’s yellow cab scheme in the current financial year. The provincial government aimed to deliver 7,500 cabs to successful applicants in the first half of the financial year

Honda sales declined 23% in April as the company is still in recovery mode following the supply chain disaster. Honda across the world has been facing problems in its supply chain since October 2010 following floods in Thailand from where parts are imported and then locally assembled.

Civic sales fell and came back to normal levels after sales in March crossed the 1,000 mark following backlog of orders as the plant was shut in the previous three months December 2011 to February 2012.

City production finally resumed after a break of four months as the factory rolled out 180 cars during the month.

Indus Motors improved its sales by 13% owing to higher sales of Corolla, the country’s highest selling car. Corolla sales jacked up 17% in April amid launch of new variants by the company in its 1,600cc segment.

With its days numbered, Coure sales fell 313 units during the month. The company announced earlier that they would pull the plug on their smaller variant before June 30, 2012 on account of high cost of production.

Tractor sales stood at healthy position for a third month in a row with 6,295 units in April. The first seven months of the financial year proved to be a daunting journey for the sector with Al Ghazi Tractors and Millat Tractors going completely offline amid imposition of 16% General Sales Tax on its sales. However, the government after looking at the gloomy situation it had created cut tax to 5% from 16%.

Published in The Express Tribune, May 12th, 2012.

COMMENTS (12)

roadkashehzada | 10 years ago | Reply

one classic (though tragic) example of our policy making facing misery due to their wrong policies is death of son of Dr. Sher Afgan in a road crash. he got airbags fitted in his toyota car but it didnt work at the right time. well our policies makers die in toyota and our kids die in bulk in road crashes like the one in kalar kahar

y | 10 years ago | Reply

Express Tribune Editor:

Your unnamed correspondent for this news item ought to take the trouble to personally visit Indus Motor and Pak Suzuki in Port Qasim, visit the plant, meet the management, etc. instead of relying on press releases and analyst briefings and simply reproducing those in your paper.

Automotive industry consists of these operations: welding, painting, assembly, and quality control. In Pakistan, technologically complex products are imported from Japan or Thailand, unboxed, and the product put together by apprentices who don't get a living wage. Basically, it is a bolt tightening work. The three assemblers are running a cartel with over priced products, low quality, depreciated models.

Your newspaper should inform readers how much the consumers are losing out to this cartel which has octopus hold on a captive market. Right now, there is a one-sided coverage.

Are you also informing about wear and tear on roads due to excessive motorization, smog, pollution, traffic jams, roads built for tonga age? Cars are luxury goods for the rich and local cars should be taxed 100 percent. Better approach is to invest in public transportation network than private cars.

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