Local car sales up by 25pc on import policy change, high demand for online taxi service

0
100

KARACHI: The sales of locally assembled cars have increased by 25 percent Year on Year (YoY) owing to change in import policy and rising demand for online taxi services.
According to the latest figures released by Pakistan Automotive Manufacturers Association (PAMA), local car assemblers (including LCVs, Vans and Jeeps) managed to sell 147,700 units during July – January 2017 – 2018 as compared with 118,416 units in the corresponding period of the last fiscal year.
Analysts at Topline Securities said the change in import procedure, demand from online ride hailing services and as well as availability of auto finance at lower rates have contributed to strong demand in outgoing month.
The analysts said Pak Suzuki (PSMC), continues to be major beneficiary as majority of used car imports fall under lower engine capacity segment. PSMC exhibited robust growth where sales rocketed 29% YoY as price conscious models Mehran (+22 percent YoY), WagonR (+100 percent), & Cultus (+15 percent) all exhibited sales growth. 7MFY18 sales were up 32 percent YoY for PSMC to 69,224 units.
Honda’s (HCAR) sales clocked-in at 3,213 units staying up 33 percent YoY, (-28 percent MoM) due to strong order book . 7MFY18 sales grew 50 percent YoY to 24,780 units due to success of new models Civic/BRV & recently revamped City.
Toyota’s Indus Motors (INDU) lagged behind peers with decrease of -3 percent/-14 percent YoY/MoM as it continues to face capacity constraints, though 7MFY18 units sales are up 6 percent YoY.