· As per the latest numbers released by PAMA, locally manufactured car sales (including LCVs and Jeeps) stood at 87,887 units during 8MFY14 vs. 82,979 units, an improvement of 6%YoY.
· The growth primarily stems from HCAR while sales of the other two major assemblers (PSMC and INDU) have depicted a muted growth in this period.
· During the period under-review, HCAR sales rose by 18%YoY to 14,821 with major growth coming in its City variant (up 21%YoY) while Civic has also posted a respectable growth of 15%YoY.
Automobile (Pakistan News)
On the other hand, INDU’s sales volumes grew by 4%YoY with its primary product’s (Corolla) sales grown by 3%YoY. The company’s other major vehicle Toyota Hilux witnessed a minor improvement of 1%YoY during 8MFY14.
· PSMC sales have grown by 2%YoY during 8MFY14 with major contribution from Ravi (up 23%YoY) followed by Cultus (up 17%YoY) and Bolan (up 7%YoY). The positive effect diluted by reduced sales of Swift (down 20%YoY) and Mehran (down 7%YoY). We believe the company’s flag ship Mehran is facing tough competition from similar engine capacity imported vehicles.
· In Feb’14, car sales stood at 12,743 units, up 1%YoY from 12,628 units in the same month last year, while are down by 8% from last month.
· The recent strengthen in PkR bodes well for the assemblers margin, but the sector will continue to face tough competitions from the imported car.
