Pakistan’s locally assembled auto volumes in FY18 increased by 23% YoY to 339,465 units, mainly attributable to growth in car sales.
For the fiscal year ended 2018, Pakistan’s auto sales (including LCVs, vans and jeeps) rose by 21% YoY with growth seen in all segments.
Total car sales have gone up by 21 per cent in the last fiscal year with 216,786 units sold as compared to 185,781 units in the last fiscal year.
Latest numbers released by the Pakistan Automotive Manufacturers Association (PAMA) for the month of Jun’18 suggest that during the last month of the current fiscal year, total car sales clocked in at 18,518 units, declining 15% as compared MoM amid Ramzan and religious holidays as restrictions on non-filers of income tax returns came into effect.
Despite the holy month, auto sales remained impressive before the advent of the new law that barred non-filers from the purchase of new cars, which was implemented from 1st July 2018.
All auto manufacturers had stopped the booking of cars by these people in May since the companies take at least three months to deliver a vehicle. However, they record sales soon after booking a car.
Honda (HCAR) witnessed the highest growth amongst its peers, clocking in at 31% YoY to a total of 51,494 units. The growth is mostly attributable to a 302% increase in BR-Vs sold due to low base of BR-V units in FY17 as sales of the said SUV were initiated in 4QFY17. Disregarding BR-V, the company still posted 16% growth, mainly due to its City and Civic models.
Pak Suzuki Motor Company (PSMC) posted strong growth of 26%, selling 144,070 units cumulatively. On monthly basis, Wagon R, Ravi, Bolan, Mehran and Swift sales managed to remain positive
Toyota, which is said to have a big chunk of rural customers, who are mainly non-filers of tax returns, endured the biggest drop of 23% in sales.
Tractor sales depicted a sharp fall of 12%YoY as customers bulked up purchases right after the budget announcement fearing an imposition of a law barring non-filers from tractor purchases (pushing up May’18 tractor volumes), and also as the Kharif season approaches its end.