Local car sales register 17% growth

Clock in at 102,491 units during 8MFY15.

KARACHI: Local car sales (including LCVs, Vans and Jeeps) clocked in at 102,491 units during the first eight months (Jul-Feb) of fiscal year 2015 (FY15), up 17% compared to 87,951 units in the same period last year.

Car sales in the month of February 2015 jumped to 17,356 units, up 36% from 12,678 units in February 2014. The improvement in sales can mainly be attributed to Toyota Corolla’s new model and the Pak Suzuki’s Punjab taxi scheme.

“The healthy growth in auto sector is indicative of an increase in per capita income, improved farmer income and overall recovery of the economy,” Topline Securities report said.



Car financing is also picking up gradually (currently estimated at 30%), thanks to declining interest rates.

In FY15, the local car assembler’s sales are expected to grow 24% to 169,876 units while 30% growth in tractors sales is also expected. The volumetric growth coupled with a weak yen will have positive impact on the profitability of the auto sector.

The tractor segment also posted a decent growth of 150% year-on- year (YoY) in February 2015 due to peak demand before Kharif season, which indicates improvement in farmer income.

Total tractors sales during the first eight months of FY15, increased to 28,412 units up 34% as compared to 21,172 units in the same period last year.

Among individual companies, Pak Suzuki sales increased by 44% YoY to 9,981 units in February 2015. During the first eight months of FY15, sales of Pak Suzuki rose to 53,669 units against 49,522 units in the same period last year.

Indus Motor – the makers of Toyota Corolla – sold 5,077 units in February 2015 compared to 3,505 units in the same month last year. On month-on-month (MoM) basis, Indus sales decreased by 21% from 6,415 units in January 2015.

During the first eight months of FY15, its sales increased by 52% to 34,375 units. The new Corolla model is sold out for the next 3-4 months according to industry sources.

Atlas Honda Cars sold 2,242 units in February 2015 compared to 2,232 units in the same month last year. On MoM basis, its sales decreased by 30% in February 2015 from 3,221 units in January 2015.

In the first eight months of FY15, its sales have now registered a decline of 5% to 14,041 units.

Published in The Express Tribune, March 12^th, 2015.

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