Car sales jump 16%

Lower segment leads the way while 1,300cc and above category sales remain stagnant.

KARACHI: Locally assembled car sales increased by 16% during July 2011 to May 2012, mainly driven by the Punjab government’s taxi scheme under which 15,000 units have reportedly been delivered.

Overall, car sales stood at 141,015 units in the first 11 months of the current financial year compared with 121,455 units sold in the same period last year, according to data released by Pakistan Automotive Manufacturers Association on Monday.

The lower segment – 800cc and 1000cc cars – was the major contributor with sales improving by 29% to 85,557 units while 1300cc and above car segment’s growth was flat.

Suzuki – the country’s largest automobile assembler – remained the key driver despite the fact that the company stopped accepting orders for CNG-fitted cars since mid-February. The government imposed a ban on imports of CNG kits in order to divert natural gas towards the power and fertiliser sectors.

Suzuki Mehran and Bolan – the two cars bought by the Punjab government – have recorded a jump of 54% and 39%, respectively, in their sales.

Toyota Corolla – the country’s highest selling car – continued to make up for the falling sales of its fellow Daihatsu Coure. Sales of the car grew by 9% to 41,720 units on improved agricultural income.

Indus Motor is all set to lose its representation from the lower segment of the market following announcement of the company that it will discontinue Coure production. However, it won’t be missed as another member of the family Hilux has taken over its position. The jeep’s sales have increased 56% to 3,625 units in the period under review.

Its new variant Vigo Champ has attracted attention and effectively mitigated the impact of Cuore sales, according to an analyst.

Forward thinking

To make up for the loss of CNG vehicles, Pak Suzuki is planning to replace its existing direct fuel injection variants with the Electronic Fuel Injection (EFi) variants from July with a premium of Rs50,000 per unit. The EFi variants will attract buyer’s attention as they don’t have any other choice except to buy these variants, according to InvestCap.

Published in The Express Tribune, June 12^th, 2012.