KARACHI: Car sales rose 16.3 percent to 201,134 units during the first 11 months of the current fiscal year of 2017/18, industry data showed on Tuesday, as low-interest rate and growing demand from cab schemes boosted auto sales.
Pakistan Automotive Manufacturers Association (Pama) data showed that car sales stood at 172,911 units in the July-May period of the last fiscal year.
Analysts said rising auto financing, various cab schemes and improved economic indicators drove strong sales in growth by auto assemblers.
Zeeshan Afzal, executive director of research at Insight Securities said the annual market demand stands between 200,000 and 250,000, and advent of new production lines would take the tally up to 300,000 units or “a little over that”.
“This is also to overcome the nemesis of premium as supply would come to the demand level,” Afzal said, referring to overcharging of quick delivery to customers by the dealers.
Pama’s data showed that car segment of 1,300cc and above recorded sales of 92,299 units in the July-May period as compared to 88,434 units. Car segment of 800cc and below 1,000cc logged sales of 63,188 units compared with 53,232 units. Sales of cars of 1,000cc increased to 45,647 units from 31,245 units.
Pama recorded car sales of 18,223 units in May, up 4.2 percent year-on-year. On month-on-month basis, May’s car sales, however, fell from 21,540 units as generally Ramazan caused a slowdown in sales.
Brokerage Topline Research said Indus Motor outperformed the competitors as its Corolla and Fortuner sales remained strong. Indus recorded sales of 4,676 units of Toyota Corolla in May as compared to 4,220 units in the corresponding month a year earlier. In July-May period, Corolla sales, however, declined to 47,866 units as compared to 49,667 units in the corresponding period a year ago.
Strong sales in Swift, Wagon R, and Ravi drove overall growth for Pak Suzuki. Sales of Honda cars marginally fell to 3,750 units in May as compared to 3,784 units in the same month a year earlier. The company also recorded lower sales of sports utility vehicle Honda BRV, which was launched in April last. BRV sales stood at 502 units in May as compared to 876 units a year earlier. In the July-May period, BRV sales increased to 7,999 units compared with 1,403 units a year earlier.
Sales of tractors maintained the upward swing following the decision of the government during the fiscal year 2017/18 to reduce the sales tax. Tractors sale increased to 6,753 units in May as against 5,663 in the same month a year ago. In July-May, sales of tractors sharply rose to 66,992 units from 50,546 units a year earlier.
Pama data showed that two-wheelers and three-wheelers recorded tremendous growth of 17 percent to 1.7 million units in the July-May period over the corresponding period a year earlier.
Auto dealers said sales of two and three wheelers are witnessing healthy increase due to lack of transport system, especially in the financial hub Karachi.
“Two-wheelers demand will continue unabated until transport system gets improved,” a motorcycle dealer said. Arrival of Chinese brands made prices of motorcycles affordable, leading to a rise in demand.