Auto sales up 18 pc as policies take hold

KARACHI: Sales of locally assembled auto-mobiles, including jeeps and light commercial vehicles, jumped to 21,091 units in November 2017, up 18% compared with 17,858 units in the same month of the previous year, showed data released by the Pakistan Automotive Manufacturers Association (PAMA).

In October last month, car sales jumped 46% – the highest in any month – compared with October 2016.

Cumulatively, industry sales during the first five months of fiscal year 2018 exhibited 29% growth to 104,901 units compared with 81,491 units in the same period of last year.

The change in import procedure as well as demand from online ride hailing services has contributed to strong demand in the outgoing month, Topline Securities commented in its report.

In October 2017, the government enhanced regulatory duty by up to 350% on 356 essential and luxury goods to control the growing import bill. The duty also impacted used and new car imports, hitting hard all such imports.

Analysts say Pak Suzuki Motor Company (PSMC) would remain the major beneficiary because up to 80% of used car imports fall under the lower engine capacity segment.

Pak Suzuki exhibited robust growth where sales rocketed 20% year-on-year as price conscious models Mehran were up 30% year-on-year, Wagon R sales were up 57% and Cultus’ sales increased by 5%. Company sales increased 33% year-on-year to 57,776 units in the first five months.

Honda Atlas Cars (HCAR) sales stood at 4,456 units staying flat 44% year-on-year, but down by 1% month-on-month.

Five-month sales grew 52% year-on-year to 21,567 units due to success of new models Civic/BRV and recently revamped City.

Indus Motors (INDU) lagged behind peers with an increase of 4% year-on-year, but down by 1% month-on-month as it continues to face capacity constraints. First five month sales were up 7% year-on-year.

Tractor sales continue to exhibit upward trajectory with sales growing by 17% year-on-year in November 2017. Millat Tractor outperformed exhibiting 27% year-on-year growth.

During the first five months of fiscal year 2018, tractor sales reached 27,313 units up 54% year-on-year.

Truck and bus sales of PAMA member companies in November 2017 remained strong, growing by 15% year-on-year while first five sales rose 19% year-on-year.