In Pakistan auto sector the local car sales including light commercial vehicles, vans and jeeps have jumped by 24% during the first 11 months of fiscal year 2015-16 compared to the same period of previous fiscal year, according to latest data of the Pakistan Automotive Manufacturers Association (Pama).
According to Topline Securities the continued growth in car sales can be attributed to auto financing due to decades-low interest rates, Punjab taxi scheme, improving security situation and overall improvement in the country’s economic situation.
During the first 11 months of 2015-16, local vehicle sales stood at 201,151 units against 162,151 units in the same period of last year.
Amongst individual companies, Pak Suzuki’s sales increased 33% year-on-year to 118,629 units in 11 months mainly led by the Punjab taxi scheme.
Its volumes remained flat month-on-month while they declined 22% year-on-year in May 2016 to 9,001 units due to end of the taxi scheme.
Indus Motor – the makers of Toyota Corolla – sold 58,531 units in July-May 2015-16 compared to 51,485 units last year. Its sales marginally improved in May 2016, up 1% year-on-year, coming in at 5,544 units.
Honda Atlas Cars sold 23,800 units in the first 11 months of 2015-16 compared to 21,134 units in the same period last year. Its sales improved 7% year-on-year to 2,507 in May 2016, but declined 9% month-on-month.
“We believe that Honda City is the main contributor to Honda Atlas Cars’ sales growth as volumes of Honda Civic are expected to decline. Buyers are likely to prefer the new model of Civic (10th generation) instead of buying the current model. The pre-booking of the new Civic has already begun this week and the company is expected to launch the model in the next few months or so,” the report added.