Despite Price Hikes, Shipments for Locally Assembled Cars Rise by 23%

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.


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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.

Category Wise

MAY’18 JUNE’18 MoM JUNE’17 YoY FY18 FY17 YoY
CARS 18223 15652 -14% 12,870 22% 216787 185,781 17%
TRUCKS 804 695 -14% 645 8% 9202 7499 23%
BUSES 102 57 -44% 77 -26% 744 1130 -34%
JEEPS 1010 1099 9% 995 10% 12869 3534 264%
PICK-UPS 2580 1767 -32% 1597 11% 28976 23804 22%
TRACTORS 6753 3895 -42% 4446 -12% 70887 54992 29%
TOTAL 29472 23165 -21% 20630 12% 339465 276740 23%

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.

Company Wise:

MAY’18 JUNE’18 MoM JUNE’17 YoY FY18 FY17 YoY
HCAR 4252 3626 -15% 2,864 27% 51494 39,163 31%
PSMC 11651 10344 -11% 8999 15% 144070 114044 26%
INDU 5910 4548 -23% 3599 26% 63068 59911 5%
HINO 330 322 -2% 304 6% 4208 3751 12%
GHNI 401 430 7% 337 28% 4000 2903 38%
AGTL 2505 1505 -40% 1516 -1% 27839 19833 40%
MTL 4165 2358 -43% 2900 -19% 42707 34206 25%

 

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.