Sales of locally assembled cars rebound, rise 7.5%

Analysts say sales to continue climbing as import stock depletes .


Our Correspondent October 11, 2013
The govt had reduced the age-limit of used cars from five years to three years. Since then, a gradual decrease in used car imports has been helping sales of locally assembled vehicles. PHOTO: FILE

KARACHI:


The sales of locally assembled vehicles (including LCVs, vans and jeeps) jumped 7.5% – a healthy increase – to 32,841 units from 30,541 units during the first quarter of the fiscal year 2013-14 compared to the same period of last year.


In September alone, sales volumes remained stable, clocking in 1% higher at 11,166 units from last month, and 15% compared to the corresponding month of 2012.

Analysts believe the sales of locally assembled cars will improve in the coming months due to lower influx of imports of second-hand Japanese cars. The government had reduced the age-limit of used cars from five years to three years in December 2012. Since then, a gradual decrease in used cars imports was helping the sales of locally assembled vehicles.

However, local assemblers say that they do not see much improvement in sales going forward into fiscal 2014.

Amongst individual companies, Pak Suzuki sales during the increased 1.7% to 17,966 units, against 17,659 units sold in the same period of last year.

However, sales surged 5.1% to 6,287 units in September alone compared to August, and 4.1% when compared to September 2012.

In the first quarter of fiscal 2014, sales of Indus Motor Company improved 1.4% to 8,419 units over the last fiscal’s first quarter. Indus Motor’s flagship automobile Corolla’s sales were up 1.1% to 7,109 units in the quarter from 7,032 units in the corresponding quarter of fiscal 2013.

However, Indus Motor’s sales have been on a decline, and keeping up with the trend in September alone, sales fell 11% to 2,602 units against 2,923 units sold in August.

Maintaining previous month’s record, Atlas Honda car sales surged 43% to 6,304 units in the first quarter of fiscal 2014 compared to the same period of last year, mainly due to sales of the new civic model.

In the quarter, sales of civic increased 87%, while city sales rose 20%. The massive growth in sales of the civic is attributable to the launch of the newer model.

Published in The Express Tribune, October 12th, 2013.

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COMMENTS (2)

dev | 8 years ago | Reply

@Saylani: Quality will only improve if they allow the free import of used cars. Protecting the local car industry does not just hurt buyers of cars it hurts the whole country. Because the local industry produces cars that are based on obsolete fuel inefficient technology it results in the following:

Consumers can't afford petrol so they switch to CNG. The price of CNG in Pakistan is much lower than the international price of gas. This results in wasteful consumption. Gas is diverted from power stations to CNG stations. Power stations consume expensive fuel oil which leads to expensive electricity or high inflation due to government subsidies financed by printing money. Fuel oil is imported so the higher consumption of it by power stations results in higher foreign exchange outflows. This leads to the frequent Balance of Payments crises and rupee devaluation.

So you see it is a vicious cycle.

Saylani | 8 years ago | Reply

Its about time to bring quality of local assembled cars in line with foreign assembled , prices are almost same as abroad so why we dont get value for money . One can see British cars on sale in karachi which are five years old so it is not true import of five years old cars have stopped.Show room owners are playing right cards and doing what ever they want govt is just turned a blind eye.

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