Local car sales jump 72%

Amount to 54,812 in first quarter compared to 31,899 in corresponding period

Our Correspondent October 12, 2015
Amount to 54,812 in first quarter compared to 31,899 in corresponding period. PHOTO: FILE

KARACHI: Local car sales (including light commercial vehicles, jeeps and vans) jumped to 54,812 units in the first three months (Jul-Sep) of fiscal year 2016, up 72% compared to 31,899 units in the same period of last year, according to data released by the Pakistan Automotive Manufacturers Association (PAMA).

It is important to note that in September 2015, despite fewer working days due to Eidul Azha, local car sales rose 45% year-on-year (YoY) to 18,424 units. They, however, declined by 10% month-on-month (MoM).

The overall healthy growth in the auto sector is indicative of an increase in per capita income, lower interest rates and overall recovery of the economy. Car financing is also picking up gradually (currently estimated at 30% versus 5% a few years ago).

To recall, car sales (excluding imported ones) in Pakistan grew at a five-year (FY11-15) compound annual growth rate (CAGR) of 5.3% to 179,953 units. While volumes surged by 31% in fiscal year 2015 (FY15) on the back of the new model of Toyota Corolla, Punjab taxi scheme and an increase in car financing due to 42-year low interest rates in the country also helped.

“We forecast local car sales to grow at 13% in FY16 to reach 203,653 units,” Topline Securities reported on Monday.

Amongst individual companies, Pak Suzuki sales increased by 98% YoY to 33,770 units in 1QFY16 primarily due to the taxi scheme. Volumes declined by 12% MoM.

Indus Motor sold 14,767 units in 1QFY16 compared to 9,862 units in the same quarter last year. In the month of September, Indus Motor’s sales stood at 4,984 units which rose by 6% year on year. On a MoM basis, however, following the trend in Pak Suzuki, Indus sales also decreased by 10%.

Honda Cars sold 6,184 units in 1QFY16 compared to 4,887 units in the same period last year. In September, Honda Cars sold 2,001 units, up by 14% YoY, while remained flat on a MoM basis.

Published in The Express Tribune, October 13th, 2015.

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Haroon Rashid | 8 years ago | Reply The higher sales figure is not quality of the automobile produced by PAMA members. See figures of China, India where sales dropped steeply almost at the point of close downs. The trends are changed with Mobile Apps Taxi, Car Sharing to overcome. Pakistan nationals residing abroad in the Americas, Middle East, Europe send/gift cars to families on festivals Eid etc., etc., when marriages also takes place after Eid or during Eid holidays. The naive consumer find it convenient/safe to remit to 3S dealer payment, and they deliver the car at home. Period. Pakistan made car depreciation should be written Off in one year with 100% depreciation, which will make it a good buy. As body,safety, safety features, Body crash tests, Accident Avoidance, etc., etc. There is nothing which PAMA members will under go. Just paint the car make a shell of tin plate, fit the CBU engine and the car is ready to roll out. Many international rating agencies has declared if the car can be exported to at least Chinese market where Pakistan has favorable trade agreements, with zero duty. Will China ever import a Pakistani Corolla even if it is duty free? Will the international QC rating agencies clear these cars?
Atif | 8 years ago | Reply This is nothing to be proud of. The largest local manufacturer with 60% market share PAKSUZUKI is selling decades old vehicles, most of the cars sold by Paksuzuki have long been discontinued in all other countries. They are not manufactured or sold anywhere outside Pakistan. Regulations need to be enforced which make it compulsory for assemblers to replace models in line with international market, include critical safety features like airbags/abs/immobilizer, and adopt modern emission standards (Euro V). Once quality vehicles are produced locally they will have export potential and can bring in revenue to the country and create further. Low Vehicle quality and safely is not a myth as claimed by Japanese Embassy, EDB and PAMA. Pakistani assembled cars are substandard and do not have mandatory safety features like airbags neither are they crash test certified. The current situation is benefiting only the Japanese who are getting maximum return and profit repatriation without investing in new technology. It is damaging local industry and economy.
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