Automobile Sector Shows Record Growth as Production Ramps Up

The fiscal year 2016-17 has seen an impressive growth in automobile production in Pakistan; 20.74% increase in motorcycles from 2,071,123 units in FY2016 to 2,500,650 units in FY2017 and 5.39% growth in cars and jeeps from 180,717 units in FY2016 to 190,466 units in FY2017, according to Pakistan Bureau of Statistics (PBS).

A similar trend of growth was seen for tractors, trucks, and buses with 54.59%, 36.11%, and 4.49% respectively.

The numbers for tractors increased from 34,814 units to 53,975 units, for trucks the output grew from 5,666 units to 7,712 units, while 1,118 units of buses were produced in the FY2017 as compared to 1,070 units in FY2016.

While all these vehicles showed a positive trend, the production of Light Commercial Vehicles (LVCs) declined from 35,836 units to 24,265 units, less by 32%.

Year-on-Year (YoY)

204,804 motorcycles were manufactured in June 2017 as compared to 187,825 units in June 2016, going up by 9.04% YoY.

Truck production showed a minute growth of 1.16%, from 601 units to 608 units in June YoY.

The numbers for tractors increased from 3,564 units to 3,926 units, showing an increase of 10.16% YoY.

Cars and Jeeps production showed a negative trend, decreasing by 6.73% from 12,354 units in June 2016 to 11,522 units in June 2017.

The production of LCVs and buses also declined by 39.29% (from 2,204 units to 1,338 units) and 1.32% (from 76 units to 75 units) respectively in June YoY.

Large Scale Manufacturing Industry (LSMI)

LSMI witnessed a growth of 5.6% during FY2017, with Quantum Index Number (QIN) increasing from 131.90 points to 139.29 points YoY for June-July.

The industrial growth month-to-month has decreased by 6.51% in June from May this year, whereas on YoY it showed a 3.3% increase in June.

Via BRecorder

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