July has seen a surge of 41% in sales of locally assembled cars in July. About 19,577 units were sold.
All the major automakers including Pak Suzuki Motors, Indus Motor Company, and Honda Atlas enjoyed strong sales of their models.
Sales Growth for Major Companies
The new SUV variant BR-V, and the latest Civic helped Honda Atlas boost their sales to 4,511 units in July, a growth of 113%.
Indus Motor Company had a somewhat lesser sales growth – with a 11% bump – selling 4168 units in July.
Pak Suzuki Motor has been one of the most successful auto companies in Pakistan due to its affordable models. Ravi’s 41%, Cultus’ 66%, and WagonR’s 77% year on year sales meant an overall 37% increase in total sales.
Tractor sales continued the upward trend by posting 125% growth in sales which is being attributed to lower GST, improving crop yield due to Punjab government’s Kissan Package and continuation of fertilizer subsidy.
Sindh government has granted Rs. 2 billion in the budget 2017-18 as a subsidy on tractor purchases for farmers.
Bus and truck sales exhibited a 13% increase to 792 units. 152,086 units of two and three-wheeler were sold, showing a cumulative growth of 42%.
The Contributing Factors
The main contributing factors for the growth of auto sales include better road connectivity, CPEC growth, change of regulations by National Highway Authority (NHA) for trucks, and lower financing rates.