close
Friday March 29, 2024

Auto sector registers 36pc growth in Feb

KARACHI: Pakistan auto sector exhibited a bullish trend in February 2015 with car, light commercial vehicle (LCV) and jeep sales recording a 36 percent increase and volumetric growth reaching 17,356 units, auto sales data by Pakistan Automotive Manufacturers Association (PAMA) for the month of February 2015 said on Wednesday.During eighth

By Hina Mahgul Rind
March 12, 2015
KARACHI: Pakistan auto sector exhibited a bullish trend in February 2015 with car, light commercial vehicle (LCV) and jeep sales recording a 36 percent increase and volumetric growth reaching 17,356 units, auto sales data by Pakistan Automotive Manufacturers Association (PAMA) for the month of February 2015 said on Wednesday.
During eighth month of fiscal year 2015 (8MFY15) sales rose 17 percent year on year (YOY), showing a sturdy growth for the sector. However the month on month (MoM) car and LCV sales recorded a trivial 2.0 percent decline in Feb 15.
Pak Suzuki Motor Company (PSMC) posted a 25 percent MoM increase in sales. PSMC’s 800CC segment, commonly referred to as Mehran segment, posted a 16 percent MoM decline, however, the other two variants namely Bolan and Ravi segments filled that space by a sturdy growth of 25 percent MoM during Feb 15, and 8.0 percent increase in sales YoY basis.
“This growth in the sales is attributed to the Rozgar Taxi scheme,” said Ahmed Lakani auto analyst at Arif Habib Research.
He said the Rozgar scheme is for 50,000 cars and is expected to maintain the pace during the current calendar year or maybe a couple of months beyond, adding that LCV sales are expected to contribute monumentally to PSMC’s bottom line.
Indus Motors (INDU) continued its robust post-July performance, since the launch of the 11th Gen Corolla, with 45 percent YoY increase in Feb 15 sale numbers, as well as a 52 percent YoY increase during 8MFY15.
Though there was a short MoM decline, expected due to high sales seen normally in the first month, yet the company managed to sell 5,077 units during the month, 10-15 percent higher than expected.
The increase in the sales is attributed to the new model of Toyota corolla.
Honda Cars (HCAR) managed to post similar sale numbers as of Feb-14, with only 10 additional units sold.
The company has been losing market share in its sole 1300CC category after the launch of 11th Gen Corolla by Indus Motors. On 8MFY15 basis, their sales dipped by 5.0 percent YoY and 30.4 percent MoM in line with general consensus.
Tractor sales continued to ride on the optimism of the reduced GST from the government with a hefty YoY jump of 150 percent due to peak demand before Kharif crop season, which indicates improvements in farmer income.
Total tractor sales during 8MFY15 increased to 28,412 units or 34 percent as compared to 21,172 units sold in the same period last year
Total Buses and truck sales during the month of Feb 15 stood at 384 units as compare to 442 units in Jan 15.
However Ghandhara Nissan continued upward momentum with 79 percent YoY increase in truck sales during Feb 15, while for 8MFY15, sales jumped 137 percent YoY.
Total motorcycles and three-wheeler sales also witnessed a slight decline during Feb 15 and stood at 59,701 units as compare to 66,554 units in Jan 15.
Muhammad Tahir Saeed auto analyst at Topline Research said healthy growth in auto sector is indicative of increase in per capita income, improved farmer wellbeing and overall economy recovery.
“Car financing is also picking up pace gradually due to decline in interest rates and reduction in General Sales Tax (GST) on tractors, taxi scheme and new model of corolla are playing important role in enhancing overall auto sales,” he added.
Saeed said in fiscal year 2015 it is expected that locally assembled car sale will grow by 24 percent to 169,876 units while 30 percent growth in tractors sales is also expected. Volumetric growth coupled with weakened yen will have positive impact on the profitability of auto sector.