Auto sales decline 17% YoY in Nov 2018
KARACHI: Pakistan Auto sales declined steeply by 17 per cent YoY in November 2018, contrary to growth in numbers last month.
The volumetric decline is much anticipated given 1) deteriorating economy, 2) law barring tax non-filers from purchasing cars and 3) multiple price hikes in the past 12 months.
Moreover, sequentially, sales have declined 30 per cent MoM primarily due to high base effect of last month as well as seasonal slowdown.
In line with our sluggish auto demand outlook, during last five months fiscal year 2018-19, unit sales declined by 4 per cent YoY which is first such decline after a period of five years (normalizing for taxi scheme).
Indus Motors (INDU) was the only company to report YoY growth in volumes, up by 2 per cent YoY in November 2018. On a sequential basis, volumes fell by 15 per cent MoM while for July-Nov 2018-19, sales are up 7 per cent YoY. Corolla sales increased by 9 per cent YoY while sales of Hilux and Fortuner fell by 46 per cent and 15 per cent, respectively.
Honda (HCAR) sales fell by 23 per cent YoY and 31 per cent MoM while sales for July-Nov 2018-19 rose by 2 per cent YoY. The fall in sales was led by 76 per cent lower BR-V sales while sales of City and Civic units on cumulative basis fell by only 2 per cent YoY.
Pak Suzuki Motor Company (PSMC) performed the worst with 25 per cent YoY decline in volumetric sales. Decline in sales was led by 44%, 39% and 28% decline in Mehran, Bolan and Ravi variants, respectively while the only variant to record growth was cultus, up by 13% YoY.
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