Car sales surge 66% in FY15-16
KARACHI: The improvement of economic activity, increase in auto financing of banks and taxi schemes of the Punjab Government have pushed up sales of automobile companies which saw a quantum jump of 66 percent in five months of current financial year 2015-16, as compared to similar period of past financial year.
According to statistics of Pakistan Automotive Manufacturers Association (PAMA), the local car assemblers’ sales of cars, light commercial vehicles (LCVs), vans and jeeps increased to 93,570 units, as compared to 56,339 units recorded in the last year. In a recent development, both Indus Motors (INDU) and Honda cars (HCAR) have increased car prices by one to 1.5 percent, owing to one percent hike in custom duty. Car assemblers have passed-on cost hike quite easily due to strong demand in the country.
The local car sales are likely to grow by 13 percent at the end of the current financial year to reach at 203,941 units despite of the fact it may not continue it existing pace due to slight increase in the prices. The expected marginal decline could be seen due to completion of taxi scheme in February 2016, and decline in Civic volumes in anticipation of new model, which is expected to hit the market in July 2016.
Tractor segment, on the other hand, posted a decline of 38 percent year over year, in the period of first five months of FY16 to reach at 11,418 units. The decline is attributed to the delay in the launch of provincial tractor subsidy schemes, which were announced to provide subsidy to 25,000 and 29,000 tractors by provincial government of Sindh and Punjab.
Trucks and buses segment of Pakistan automobile sector has also posted an increase of 39 percent to 2,115 units during first five months of current fiscal year. The increase is attributed to China-Pakistan Economic Corridor (CPEC), and improving law and order situation in the country.