Thanks to an improved law and order situation, 42-year low interest rates, Punjab government’s taxi scheme and other economic factors, local vehicle sales in Pakistan have surged to 184,099 units against 142,814 units last year – a 29% YoY increase during the first 10 months (July-April) of the fiscal year.
We take a look at how car sales have done during the year for local auto and tractor makers.
Indus Motors sold 52,987 units during the year – a 1.15% YoY increase. However, sales fell 6% to 5,483 in April 2016.
The market leader Suzuki saw a 41% YoY increase with the sales units of 109,628 in year fiscal year 2016, thanks to Punjab’s taxi scheme. However, due to less working days, sales in April have declined 18% YoY. At 8,965 units, month-to-month basis sales volume in April have dropped by 1%. An overall 5% decline in sales was recorded in April 2016 compared to March 2016.
With sales volume of 21,292 in the year, Honda Cars saw a 1.13% increase in sales the current year. With sales of 2,571 units in April – a 16% increase in YoY levels, it is pertinent to note that Honda observed no change on MoM basis. In the anticipation of the upcoming Honda Civic model, the sales of current Civic models are further expected to slow down in the coming months.
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Overall, car sales in Pakistan have registered healthy growth over the last year, With the passage of the long-delayed Auto Policy 2015, expect competition to heat up amongst local car makers and new entrants to the automobile industry in Pakistan.
Pakistan’s Tractor segment witnessed a 31% YoY decline with sales volume of 26,568 units during the year. The decline in sales has been a result of delay in the launch of provincial tractor subsidy scheme announced by Punjab and Sindh government.
Al-Ghazi tractors also observed a decline of 30% YoY in sales to 9,882 units. Sales in April were recorded at 1,935 – a 23% YoY and 7% MoM increase.
Millat tractors sold 15,974 units in this period compared to 23,426 of the last year – a 32% decline. In April 2016, sales decreased by 29% YoY to 2,440 units.