KARACHI: Local car sales including LCVs, vans and jeeps during the first five months (July-November) of the fiscal year 2014 (5MFY14) have increased 6.7% to 52,384 units compared to 49,092 units in the same period last year.
During November 2013, local car sales declined 3.7%, translating into 9,588 units as compared with 9,955 last month, whereas, sales increased by 4.7% as compared to 9,154 in the same month last year. Summit Capital Analyst Sarfaraz Abbasi said the decline was not unusual. “This is because people usually wait during November and December to buy new car models in January the next year,” said Abbasi. “The sales are expected to pick up after January.”
Analysts pointed out that continuous rupee depreciation against important currencies like the dollar and yen as the reason behind the profitability of carmakers being dented in the country, which will continue in the coming months. According to Abbasi, despite all the pick-up in sales after January 2014, the annual growth rate of the automobile industry is expected to remain between 5.5 and 6% in FY14.
Topline Securities, on the other hand, reported on Wednesday that the growth of 6.7% in 5MFY14 is in line with its assumption of 5% to 8% annual growth in FY14. Among individual companies, Pak Suzuki has sold 29,511 units during 5MFY13, showing an increase of 4.1% as compared to 28,337 units last year. Similarly, on a monthly basis, Pak Suzuki sales increased to 5,989 units, up 7.8% as compared to 5,556 units last month. Indus Motors 5MFY13 sales have remained stable at 13,197 units as compared to 13,128 units in 5MFY12.
On a monthly basis, Indus sales declined to 2,183 units, 15.9% down as compared to 2,595 units in October 2013, while 2.7% up as compared to 2,125 units in November 2012.
Honda Atlas Cars sales have jumped to 25.6%, translating into 9,334 units during 5MFY13, as compared to 7,429 units for the same period last year. Increase in sales is primarily attributed to 27.1% year-on-year rise in ‘Civic’ sales. However, volumes dropped to 1,310 units in November 2013, with a 23.8% decline on a monthly basis due to year-end phenomenon.
Published in The Express Tribune, December 12th, 2013.
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