Auto sales down 13 percent in February

KARACHI: Auto sales dropped 13 percent to 19,712 units on a year-on-year basis for the month of February 2019, mainly dragged down by prevailing laggard economic conditions, industry-dispatched numbers showed on Monday.

Pakistan Automotive Manufacturers Association- (PAMA) released numbers present that it takes the tally of cumulative sales for the eight months of this fiscal to 162,600 units, down 4.5 percent year-on-year.

Topline Securities in its auto sector review said, to note, measures in economic reforms package were expected to improve the sales; however, downtrend was likely to continue in the months to come.

“In our view, due to slow down in economy as well as significant jump in prices in last 15 months,” the brokerage said.

The largest decline was recorded in 800-1000cc segment, down 33 percent year-on-year

primarily led by Suzuki Mehran; however, on month-on-month basis the volumes rose 8 percent to 2,925 units.

Sales for 1300cc and above segment also went down 2 percent (year-on-year) and 15 percent (month-on-month) to 8,239 units, led by Honda’s Civic and City variants.

“Going forward, the recent removal of ban on tax non-filers to purchase new vehicles will

provide some respite to the industry, we believe,” Topline said in the report.

The brokerage further added that Pakistan Suzuki (PSMC) continued to report year-on-year decline in sales, down by 17 percent in February 2019.

“The decline was led by Mehran, Bolan, Swift, Cultus and Ravi variants, which went down by 33 percent, 18 percent, 28 percent, 14 year-on-year and 14 percent year-on-year, respectively.”

Topline report further said Wagon-R was the only PSMC variant to record year-on-year growth of 16 percent. “Honda cars (HCAR) sales fell 27 percent, worst year-on-year decline since Apr 2012. This coincides with worst year-on-year decline in sales of City and Civic variants, which fell by 24 percent,” the brokerage house said.