Even though many foreign automobile manufacturers, such as Renault and Nissan, are reportedly considering to set up their operations in Pakistan, it might come as a surprise to many that the local automobile sales suffered a decline during the first 8 months of the current fiscal year (i.e. from July 2016 to February 2017).
As per the data shared by Pakistan Automotive Manufacturers Association (PAMA), this year only 138,103 units were sold during the first 8 months of the current fiscal year compared with 149,311 automobiles sold during the same period in the previous fiscal year.
Topline Securities, a brokerage house, stated that the car sales are expected to hit 270,000 mark by the end of the current fiscal year. This figure also includes 60,000 imported units.
It is pertinent to note that the automobile sales in February were as per the expectations of Topline Securities. The sales dropped by 6% on a month-on-month basis in February 2017. However, the main reason for the decline was the fewer number of working days in February compared with January.
The sales volume of Pak Suzuki Motor Company remained strong (excluding the taxi scheme) with Bolan and Wagon-R recording strong sales during the first eight months of the current fiscal year. Wagon R, particularly, recorded a strong growth despite an increase in the price with 1,638 units sold.
On the other hand, Indus Motors experienced losses in the first eight months due to some operational issues. Whereas, sale of Toyota Fortuner increased to 237 units in February 2017, an increase of 6.6 times when compared with February 2016.
Honda also experienced an increase in sales, since the recently launched booking of Honda BR-V Sub has fared well and 2000 units of the model are already booked. Honda’s tractors also witnessed a significant increase in sales of around 80% in the first 8 months of the current fiscal year compared with the same period in FY 16. Analysts also believe that the sales of tractors will increase further due to drop in the prices and better crop yield overall.