Locally assembled car sales down 4% in Jan 2019

KARACHI: Pakistan locally assembled auto sales went down by 4 per cent YoY in January 2019, as against 1 per cent YoY increase in December 2018. However, sales are up 16 per cent MoM primarily due to seasonal factors.

Furthermore, anticipated price hike due to 5 per cent devaluation in Pak-Rupee during November and December 2018 may have also incentivized purchase of cars, the analyst believed.

This brings 7-month fiscal year 2019 sales number to 143,000 units, down by 3 per cent YoY. Despite supportive measures by the government in recent economic reform package (January-2019), the analyst continues to expect slowdown in auto sales given deteriorating economy as well as multiple price hikes in the past 14 months.

Indus Motors (INDU) continued to report YoY growth (up 16 per cent YoY in January 2019) due to a strong order book led by sales of Corolla variants, up by 26 per cent YoY. However, sales in Fortuner and Hilux variants have declined by 45 per cent YoY and 5 per cent YoY, respectively. On a monthly basis, total volumetric sales are up 17 per cent while sales are up 9 per cent YoY for 7 months 2018-19.

Honda cars (HCAR) grew its sales by 3 per cent YoY due increase in civic and city sales volumes by 4 per cent YoY. BR-V continued its declining sales trend with a fall of 2 per cent YoY. On a monthly basis, total volumetric sales are up 91 per cent due to low base effect (Dec 2019 sales at 2,367 units, lowest monthly sales since Jan 2016) along with expected price hike, while sales are down 1 per cent YoY for 7 months 2018-19.

Pak Suzuki (PSMC) continued to report YoY decline in sales, down by 15 per cent YoY in January 2019 after some respite in December 2018.

PSMC sales volumes have fallen YoY in every month since August 2018 except for December 2018. Sales decline was led by Mehran, Bolan, Swift and Ravi variants down by 37 per cent YoY, 27 per cent YoY, 28 per cent YoY and 11 per cent YoY, respectively.

However, Cultus and Wagon-R sales rose by 7 per cent YoY and 15 per cent YoY, respectively. On a monthly basis, volumetric sales are flat while sales are down by 10 per cent YoY for 7-month 2018-19.

 

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