Pakistan News

Auto sales fall

Auto sales fall

KARACHI: Auto sales came down by four per cent year-on-year (YoY) during the first quarter of this fiscal year to 58,351 units.

However, sales grew by 3pc in September to 19,345 units, an increase of 10pc month-on-month (MoM).

Pak Suzuki Motor Company reported the worst decline in volumes, with Sept sales down by 5pc YoY to 9,900 units. However, sales were up by 14pc MoM. During 1QFY19, unit sales were down 10pc YoY to 29,478 units. During September, Wagon-R and Swift led the growth chart, up by 61pc YoY and 41pc YoY, respectively. However, unit sales were dragged down by 37pc YoY and 23pc YoY decline in Mehran and Bolan, respectively.

Honda Atlas Cars sales rose by 32pc YoY to 4,512 units due to low base effect from Sept 2017 while unit sales increased by 14pc MoM. The 1QFY19 sales were up by 7pc YoY to 13,454 units. Civic and City rose by 47pc YoY while BR-V sales fell by 35pc YoY. Indus Motor Company sales remained flattish YoY, with 2pc MoM decrease in units sold. In 1QFY19, the company sold 15,419 units, up by 2pc YoY. During Sept 2018, sales were led by Corolla, up by 8pc YoY. On the other hand, Hilux sales down by 42pc YoY. Fortuner sales plunged to 606 units YoY in 1QFY19.

Syed Danial Adil at Top Line Securities expected significant demand contraction in the auto sector due to deteriorating macroeconomic environment, multiple price hikes since December 2017 and impact of law requiring car purchasers to be tax filers. Auto prices are expected to rise further due to sharp rupee depreciation, he added.

Published in Dawn, October 11th, 2018

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