There’s no doubt that Pakistan’s automotive industry is making huge strides and every now and then we see a new model on the roads. That being said, sales of locally assembled vehicles – including jeeps and light commercial vehicles – surged to 19,577 units in July 2017, up by 41% compared to 13,931 units sold during the similar timeframe in the preceding year, according to the data released by Pakistan Automotive Manufacturers Association (PAMA).
According to Topline Securities, the aforementioned numbers were in line with analysts’ expectations. Nevertheless, the big difference in monthly sales can be attributed to less working days in July 2016 due to Eid Holidays, the report suggested.
Pak-Suzuki Motors experienced an increase in sales by 37% Year-on-Year (YoY) in July on the back of strong demand for Wagon R, which experienced an increase in sales by 77%. Moreover, with the launch of a new model, sales of Cultus increased by 66% YoY while Ravi sales witnessed a hike by 41%, which also supported the company’s growth.
Interestingly, Honda had outstripped its peers in terms of sales by posting 113% growth on the back of successful launch of a new Civic model and new sports utility vehicle (SUV) BR-V.
On the other hand, Indus Motors sold 4,618 units in the month of July 2017, up 11% YoY. The company’s main focus during the timeframe under review was on the production of higher-margin Fortuner, which recorded a tremendous growth of 543%.
In addition, buyers were postponing their purchases of Toyota Corolla as they are waiting for the face-lift model, which has arrived now.
Sales of tractors also experienced an upward trend and recorded a growth of 125% YoY in July 2017.
Many analysts believe that the increase in sales of locally assembled cars can be attributed to the advent of ride hailing services in the country.