It is pretty evident that automobile industry is experiencing a constant surge in Pakistan with many foreign automobile manufacturers (such as Nissan and Renault) looking to invest in the country. Therefore, it shouldn’t come as a surprise that car sales experienced an increase of 1.7% during the first nine months of the current fiscal year.
Manufacturers on Tuesday said that the tractor sales experienced a significant increase by 74% during the similar timeframe. Further, Pakistan Automotive Manufacturers Association (PAMA) said that overall car sales increased by 1.72%, while truck and bus sales rose to 38.7%. The figures mentioned above are sufficient enough to sketch a bright future image of automobile sector of Pakistan.
Many analysts attributed the increase in car sales to the surging competition in the industry. As new players are planning to enter in Pakistan’s automobile industry, companies have started thinking out of the box to offer improved safety and performance features in the cars in order to differentiate their offering from other market players in the industry. Also, this way the companies are creating traction among the customers to purchase their cars.
Aamir Allawala, former chairman Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) said car sales soared after the arrival of automatic cars by Honda and Indus Motors. “Import of smaller cars can also come to an end if Suzuki makes its popular car WagonR automatic,” he said.
To give our readers some insights about the car sales during the nine months of the current fiscal year, a total of 139,570 cars were sold during that period, up from 137,206 cars during the similar time frame of last year. In addition, approximately 72,095 cars of 1300cc or above category were sold during July-March period compared to 64,882 units sold during the similar time period in the previous year. Also, in March 2017, a total of 18,295 cars were sold.
Analyst at Topline Securities, Hashim Sohail, said that auto sales including LCVs and Jeeps continued to experience robust double digit growth in the nine month period of the current fiscal year.
“Our expectation for car sales in FY17, stand firm at 270k units, including imports of 60k units,” he added.