Auto sales remain stable, up 14% in 10MFY12

By Shahid Abbasi May 11th, 2012 ( 1 Comment )

Karachi: The automobile sales including cars, light commercial vehicles, vans and jeeps rose by 14 percent to 143,374 units in ten months of the current financial year (10MFY12) as against 125,766 units sold in the corresponding period last year.

The growth arise owing to the Punjab government yellow cab scheme, improve agri-based economy and positive impacting of 20 percent increase in workers’ remittance in the same months.

Pak Suzuki Motor Company (PSMC) sales declined by 21 percent to 8,837 units as against 11,198 units last month. As compared to same month last year, the company has been able to sell an additional 18 percent units.

In 10MFY12, PSMC continue to post strong growth of 30 percent to 90,197 units versus 69,203 units seen in same period last year primarily due to yellow cab scheme.

Indus Motors Company sold 5,203 units in April that is 16 percent up from last month sales of 4,492 units while are an improvement of 11 percent from 4,278 units in same period last year.

In 10MFY12, the company sold 44,061 units compared to 41,940 units in same period last year, up by 5 percent. Coure sales due to discontinuation effect are down 30 percent and 7 percent increase has been in company’s flagship product Corrola.

With overall strong growth seen in volumetric sales and improved margins on account of rupees gaining 1.2 percent against the Japanese Yen, is expected to bode well for sector’s profitability but we flag that the sector operates in high regulatory risk environment.

On year-on-year basis, the car sales stood at 14,798 units, depicting an increase of 6 percent from 13,914 sold in April last year.

On month-on-month basis, the automobile sales including cars, light commercial vehicles, vans and jeeps have down by 11 percent in April to 14,798 units as compared with March’s sales that stood at 16,678 units.

Besides, the decline in locally-made automobile was reported due to reduced demand by the customers after the non availability of CNG fitted cars. However, on the other hand, the imported used cars poised tough time to the locally-made car sales in the retail markets, which translated its impact of 1,880 units sale drop in a single month.

The decline in sales was expected and would bear on the overall sales number at least in the short term.