Pakistan’s local car sales (including light commercial vehicles LCVs, vans and jeeps) during the first 10 months of fiscal year 2014 (10MFY14) have reached 112,470 units, up 3.8% year on year (YoY) compared to 108,334 units in the same period last year.
On a monthly basis, locally manufactured auto sales have remained fairly stable at 12,250 units in April 2014 against 12,269 units in March 2014. However, auto sales improved 2% YoY from 12,011 units in April 2013.
Among individual companies, Pak Suzuki (PSMC) sales increased 2% YoY to 62,873 units during 10MFY14 as compared to 61,689 units last year. On a monthly basis, PSMC sales surged significantly to 7,359 units in April 2014, up 22.8% month-on-month (MoM) compared to 5,992 units in March 2014 and 17.5%YoY.
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“This phenomenal increase was due to 1-3 % reduction in car prices by PSMC at the start of April 2014,” said Topline Securities on Friday, adding that the company also launched its new variant ‘Wagon R’ in April 2014 which contributed 309 units in sales.
Analysts believe that the recently launched 1,000cc Wagon R is going to strongly support the volumes of Pak Suzuki– a much-awaited boost to the company after the discontinuation of Alto in June 2012.
During 10MFY14, Indus Motors (INDU) sales remained stable at 29,581 units compared to 29,762 units in 10MFY13. However, on monthly basis, the company posted a massive decline in sales to 2,854 units, down 29.6% MoM, from 4,051 units in March 2014 and 27.5%YoY.
“We think the decline in Indus Motor volumes is due to the expected launch of the new Corolla Model in Aug-Sep 2014,” the report added. This has happened despite the fact that the company was the first among its peers that reduced prices (1-3%) after the recent sharp appreciation of Pakistani rupee against the dollar.
The sales of Honda Atlas Cars (HCAR) surged 13.3% YoY to 18,742 units in 10MFY14. During April 2014, sales of Honda Atlas Cars declined by 1.1%MoM to 1,950 units. Moreover, volumes increased by 9.6%YoY from 1,780 units in April 2013.
Published in The Express Tribune, May 10th, 2014.
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