Passenger car sales up by 4% in July-Oct 2018-19

KARACHI: The total sales of locally assembled passenger cars went up by 4 per cent to 72,563 units in the last four months of current fiscal year against the sales of 70,040 units in the same period last year.  On Month on Month (MoM) basis the sales also improved to 9 per cent, the data released by Pakistan Automotive Manufacturers Association (PAMA) said here on Monday.

The local car manufacturers were demanding from the government to remove the auto sector from the list of tax filer list, as this government condition is directly hitting their sales. The government of PML-N has imposed a condition of tax-filer who is going to purchase new vehicles.

The local auto manufacturers have also challenged this condition of the government in the Supreme Court of Pakistan praying the court to remove this filer condition as it is illegally imposed on non-filers. There is no law in Pakistan that a non-filer cannot have new car.

The sales of Pak Suzuki Motor Company (PSMC) have sufficiently declined by 8.3 per cent as it sold only 42,914 units in July-Oct 2018 compared to 46,491 units sold in the same period last year. The sales of Suzuki Mehran, Suzuki Bolan and Ravi have declined up to 23 per cent, 22 per cent, 21 per cent respectively in last four month. In the same time, Suzuki Cultus and WagonR supported the company’s sales in last four months as it enhanced by 9 per cent and 21 per cent respectively.

The market analyst further expects the demand passenger cars of Suzuki Mehran, Bolan will decline as the buyers are looking towards the WagonR and Cultus. These vehicles are also being used in Uber and Careem (passenger service), he added.

On the other hand, the prices of all vehicles have gone up 10-15 per cent in last three months owing to the depreciation of Pak Rupee against the dollar.

Indus Motor (Toyota), Honda and PSMC had increased the prices of their models in September 2018.

Honda (HCAR) witnessed significant increase in volumes as unit sales rose by 19 per cent YoY in last four months. The company sold 16,643 units compared to 13,949 units. Similarly, on MoM basis, unit sales increased by 23 per cent in last four month.

–Indus Motors (INDU) sales enhanced by 9.7 per cent in July-October period and the company sold 18,814 units compared to 16,981 units sold in the same period last year. On MoM basis, it surged by 24.9 per cent as the company sold 5,618 in October 2018, compared to 4,216 units sold in the October 2017.

After a detailed meeting with the Finance Minister Asad Umer, the sources said, the auto industry has challenged the government decision in Supreme Court of Pakistan. The sources said that the judges of the court will decide about the filer and non-filer issue for auto industry.

In April 2018, Ghandhara Nissan Limited launched its locally assembled JAC Motors X200 1-ton pickup in Pakistan, which is primarily suitable for distribution of goods in urban and rural areas. According to data, it sold 291 vehicles in Pakistan in last four months.

 

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