Auto sales up 20% in 5M FY12

KARACHI: Auto sales witnessed a substantial growth of 20 percent on yearly basis to 70,460 units in the first five months of 2011-12 as against the sales of 58,784 units in the corresponding period of last year, data released by Pakistan Automotive Manufacturers Association (PAMA) said on Monday.

The main reason behind the substantial volumetric growth was the low base effect coupled with incentive given by the government to local auto manufacturers in terms of removal of Special Excise Duty (SED) of 2.5 percent on imported and manufactured vehicles coupled with reduction in general sales tax (GST) from 17 percent to 16 percent in addition to the low base effect. Pak Suzuki Motor Company Limited (PSMC) witnessed a 33 percent growth to 42,738 units in 5M FY12 as against the sales of 32,092 units in the same period last fiscal.

The growth in sales was witnessed on the back of yellow cab scheme offered by the Punjab government as merely two models Mehran and Bolan were approved for the subsidised scheme.

Suzuki Mehran, the hot cake segment of the company, posted 47 percent growth in its sales to 14,134 units in comparison with 9,596 units in the same period of last year. Suzuki Bolan also posted a sharp rise in its sales to 6,880 units in 5M FY12 as against sales of 5,378 units in the corresponding period of last year.

Highest growth was observed in the sales of Suzuki Swift of 121 percent to 2,802 units as against 1,270 units in the same period of last year. Liana under the domain of 1300cc and above segment also witnessed a handsome 16 percent jump in its sales to 188 units as against 162 units in the same period of last year.

Ravi, the pick, also experienced rise of 14 percent growth to 6,765 units versus 5,936 units in the same period of last year.

Indus Motor Company Limited (INDU) witnessed a 3 percent growth in sales to 20,932 units in 5M FY12 as against 20,375 units in the same period of last year. Highest sale was witnessed in Hilux, which posted gigantic sales of 132 percent to 1,342 units as against 578 units in the same period of last year.

Toyota Corolla posted an upsurge in sales by 4 percent to 17,867 units as against 17,149 units in the same period of last year. Cuore remained as the only segment of the company whose sales experienced a decline of 35 percent to 1,723 as against sales of 2,648 units in the same period of last year. Honda Atlas Cars Pakistan Limited (HCAR) also posted growth in its sales of 9 percent to 6,790 units in 5M FY12 as against the sales of 6,247 units in 5M FY11.

The main reason behind growth was low base effect. City, the most liked segment of consumers posted 14 percent growth to 4,175 units as against sales 3,670 units in the same period of last year. On the other hand, Civic, another product of the company which in 1300cc and above posted just 1 percent growth to 2,615 units as compared with 2,577 units in the corresponding period of last year. As far as the market share is concerned, PSMC leads the market with 61 percent market share followed by INDU and Honda Atlas Cars with 30 percent and 10 percent market share, respectively in 5M FY12.

However, on monthly basis, total sales declined by 21 percent to 11,884 units during the month of November as against the total sales of 15,069 units in the previous month. The main reason behind the decline on monthly basis was deferred buying of the consumers to get their vehicle registered in new year. Besides, the increase in prices was witnessed due to decline in their sales.

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