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Car sales drop 5pc

KARACHI: Car sales dropped five per cent year-on-year to 71,877 units in the July-November period, though they posted an increase in November alone, according to figures released by the Pakistan Automotive Manufacturers Association on Tuesday.

Toyota Corolla’s sales, hit by the introduction of Honda Civic’s new model, fell 7.5pc year-on-year to 21,628 units in July-November. By contrast, combined sales of Honda Civic and City jumped 48pc to 14,155 units. Suzuki Swift sales were almost steady at 1,789 compared to 1,728 units sold in the five-month period of last year.

In the 1,000cc category, sales of Suzuki Cultus fell 7.5pc to 5,805 units while sales of Suzuki WagonR skyrocketed 84pc to 6,183.

In cars with 800cc and below engine power, Suzuki Mehran sales edged lower by 5pc to 14,394, followed by a sharp plunge in sales of Bolan which plummeted 51pc to 7,923 units during the period under review.

In November, overall car sales stood at 16,018 units, a rise of 11pc on a month-month and 1.9pc on a year-on-year basis.

Hashim Sohail at Topline Securities said car sales including light commercial vehicle (LCVs), vans and Jeeps plunged 13pc in July-November to 81,491 units while volume (excluding sales under taxi scheme) registered a year-on-year growth of 12pc.

He expected car sales to remain buoyant in the current fiscal year despite conclusion of Apna Rozgar Taxi Scheme, with locally manufactured car sales growing 11pc to 210,000 units (excluding taxi units).

Further, with an average influx of 5,000 imported cars a month, total sales of the automobile industry are estimated to stand at 270,000 units during 2016-17.

In July-November, sales of the Pak Suzuki Motor Company dipped 25pc to 43,553 units due to lower sales of Bolan and Ravi variants after conclusion of the taxi scheme.

Indus Motor Company’s sales declined 8pc year-on-year to 23,783 units in the five-month period as its assembly lines suffered through production breakdowns, resulting in subdued volumes during the period under review. However the plant has managed to achieve smooth operations from November.

Honda Atlas Cars sold 14,155 units during the period under review, showing an increase of 49pc. November sales swelled 103pc. Mr Sohail said that around 12,000-15,000 new Civics had already been booked.

TRACTORS: Salesof local tractors jumped 54pc year-on-year to 17,541 units during July-November. During November alone, sales jumped 127pc year-on-year to 5,145 units.

He attributed strong growth in sales to lower retail prices due to 5pc reduction in general sales tax (GST) announced in the latest budget and improved farm economics.

The incumbent government, in its attempt to provide relief to local farmers, announced incentives to the agriculture sector in the current year’s budget, including reduction in urea prices and financing rates. This should help improve liquidity among farmers resulting in better off-take of tractors, he believed.

Truck sales soared 59pc to 2,766 units in July-November while bus sales climbed 25pc to 468 units.

Sales of Toyota Fortuner (4×4 jeep) fell 22pc to 187 units while there was nil production and sales of Sigma Defender in July-November as compared to production of 169 units and sales of 140 units in the year-ago period.

Suzuki Ravi sales dropped by more than half to 7,459 while those of Toyota Hilux fell 7pc to 1,968 units in the July-November period.

Courtesy : Dawn News

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