-The latest data released by Pakistan Automotive Manufacturing Association (PAMA) reveals that local auto sales have shown a significant recovery on the sequential basis in 3QFY14.
-The locally manufactured sales (including LCVs and Jeeps) stood at 38,869 units during 3QFY14 versus 28,411 units sold in the previous quarter, a growth of 37% QoQ. However, on YoY basis, the growth remained muted.
-On the sequential basis, HCAR sales grew by a massive 85%QoQ followed by INDU with growth of 71%QoQ. On the flipside, PSMC underperformed its peers, but still depicted a decent growth of 14%QoQ.
-In Mar’14, local assemblers sold 12,234 units, down 8%YoY and 4% from last month. We believe the slowdown in Mar’14 numbers can partially be attributed to deferred buying phenomena as all the three assemblers reduced their car prices in Mar’14.
-Overall in 9MFY14, locally manufactured car sales stood at 100,121 units versus 96,323 units, an improvement of 4%YoY.
-HCAR sales grew by 14%YoY to 16,792, while INDU and PSMC sales growth remained muted at 4% and 0%, respectively.
-We believe the recent PkR appreciation bodes well for the local auto industry by substantially improving the margins scenario of the companies.
