-As per the recently released numbers, locally manufactured car sales (including LCVs and Jeeps) stood at 61,252 units in 1HFY14 against 57,540 units, up 6%YoY.
-The growth stemmed from 20% growth in HCAR volume while PSMC and INDU depicted a subdued growth of a mere 3%.
-HCAR benefited from higher sales of its ‘City’ variant (up 26% YoY) while ‘Civic’ has also shown a respectable growth of 14%. The company’s market share expanded by 2pps to 16% in 1HFY14.
-PSMC sales have grown by 3% during 1HFY14 to 35.4k units where higher growth of Ravi (21% YoY), Bolan (18% YoY) and Cultus (17% YoY) was diluted by sales contraction in Liana, Swift and Mehran.
-INDU’s flagship ‘Corolla’ witness an increase of 4%YoY. Company’s other product Hilux has shown a subpar performance with sales declining by 6%.
-We believe that the availability of cheaper, imported substitutes are adversely affecting the domestic volumes.
-In Dec’13, car sales stood at 8,868 units, up 5% from as compared to the same month last year, -The continuous show of low numbers by the auto industry has attached a lower side bias to our sales forecast for FY14. However, major trigger for the sector resides in the new auto policy with talks amongst the various stakeholders underway.
| 1HFY14: Local car sales | ||||||||||
|
5MFY14 |
YoY |
Nov’13 |
YoY |
MoM |
||||||
| Industry |
61,252 |
6% |
8,868 |
5% |
-8% |
|||||
| PSMC |
35,492 |
3% |
5,981 |
0% |
0% |
|||||
| INDU |
15,181 |
3% |
1,983 |
26% |
-9% |
|||||
| HCAR |
9,989 |
20% |
655 |
-24% |
-50% |
|||||
| Source: PAMA, Shajar Research | ||||||||||
