Car sales have reached a new high of 20,000+ units for the month of May, 2017.
According to the statistics shared by the Pakistan Automotive Manufacturers Association (PAMA), sales are up by 21.5%. Last year during the same time period, 17,052 cars were sold to customers compared with 20,720 units sold this year.
This rise in sales was led by Pak Suzuki Motor Company (PSMC) and Indus Motor Company (IMC) getting more sales than expected. Topline Securities mentioned that PSMC sold about 11,100 units (10,400 expected) and IMC sold 4,900 units, about 500 more than the expected 4,400.
Honda Close to Beating Out IMC
Honda’s BRV is also getting strong sale numbers. The company sold 527 BRVs in April and 876 in May. As for the total sales for Honda, the company sold 4,660 units showing a strong 86% growth year on year.
IMC’s sales decreased by 11% year on year owing to slowing Corolla sales which fell by 19% year on year. The company is trying to increase production for the light commercial vehicles/sports utility vehicles.
PSMC’s sales increased by 24% compared with the same period last year. The growth was due to the increasing demand for Suzuki Wagon R and the new Cultus. Wagon R’s sales in particular soared by 172% year on year with 1927 units sold. The new Suzuki Cultus/Celerio’s sales were recorded at 2000 units.
Tractor and Light Commercial Vehicle Sales
Light commercial vehicle and SUV/4WD sales continued their upward trend during the first 11 months of the current fiscal year 2016-2017. They recorded a 19% increase in sales year on year.
Tractors also had their sales rise with increasing demand, growing 65% year on year during the first 11 months of FY 16-17.
Several factors like reduced GST, better crop yields, subsidies on fertilizers are expected to aid tractor sales in the future as well.
The sales will continue to rise in the future thanks to the China Pakistan Economic Corridor project and other infrastructure development projects.