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Auto sales up by 21 percent in 11 months of FY-18

By S N Syed

KARACHI: Auto sales in the country have registered a growth of five percent year on year in May 2018 to clock in at 21,813 units.
According to data released by Pakistan Automotive Manufacturers Association Tuesday Indus Motors (INDU) outperformed the market as Corrolla & Fortuner sales remained strong.
Cumulatively, in 11MFY18, car sales grew by 21 percent year on year to 240,114 units by strong growth seen by various auto assembler driven by rising auto financing and various cab schemes. However, sales were down 15pc month on month.
One analyst at Topline Research said that sales were largely in line with their expectations.
INDU recorded sales growth of 20pc year on year in May 2018 driven by strong sales of Corrolla (4,676 units) and Fortuner (508 units) during the month.
Pak Suzuki (PSMC) sales grew by 5.0 percent year on year in May 2018 that was mainly driven by strong sales seen in brands like Swift (up 52 percent),Wagon R (up 40 percent), and Ravi (up 12 percent year on year). On the other hand, Mehran sale was up 5.0 percent year on year.
Sales of Honda Car (HCAR) clocked in at 4,252 units, down 9.0 percent year on year mainly due to lower sales in Honda‐BRV.
Further, cumulative sales of Civic and City remained flat at around 3,750 units.
One analyst at Arif Habib Ltd said that the slowdown in car sales is due to higher car prices as company raised car prices for the third time during this FY18 till date on account of Rupee depreciation against regional currencies, Ramazan factor, restriction imposed by govt on non-filers for booking and registration of new cars, and resumption of import of used and new cars through personal transfer or baggage scheme.
In the 1300cc and above category, sales displayed a meagre drop of seven percent month on month while they were up by 7.0pc year on year to 8,865 amid 11pc year on year uptick in sales of Toyota Corolla.
In the below 1,000cc category, Mehran sales registered an increase of 5.0pc year on year and decline of 23 percent month on month to 3,557 units.
On a monthly basis, Toyota Hilux remained the only car which managed to post a growth of 2.0 percent month on month as demand for Hilux increases during elections which scheduled for 25th July’18.
Tractors sales increased by 19 percent year on year but declined by 15 percent month on month to 6,753 units. During the month, MTL and AGTL sales witnessed a growth of 22 percent year on year and 13 percent year on year to 4,165 units and 2,505 units, respectively.

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