Rural favourite Indus Motor’s sales decline

KARACHI: Indus Motor Company’s sales have suffered the brunt of slowdown in rural areas following the floods since their cars are rural favourites, experts said on Tuesday.

“Sales of the entire sector are expected to drop by 20 per cent year-on-year in fiscal year 2011,” a research report issued by BMA Capital said on Tuesday.

Indus Motor sales dropped 33 per cent to 3,360 units in August on a monthly basis while Pakistan Suzuki Motor Company saw its sales increase 44 per cent, highlighted BMA Capital.

Automobile sales witnessed a meagre increase of two per cent to 11,019 units in August month-on-month basis, cited the report.

“Intended implementation of reformed general sales tax should provide relief for consumers on the price front,” cited a report issued by AKD Securities.

Sales of passenger cars during August stood at 9,829 units while during the same period, 196 trucks, 45 buses, 1,191 pick-ups and 3,637 tractors were sold, data released by the Pakistan Automotive Manufacturers Association (PAMA) revealed.

PAMA also reported sales of 58,817 motorcycles and three-wheelers during the period.

Published in The Express Tribune, September 15^th, 2010.