The sales of locally produced cars reduced from 22,513 units in January 2019 compared to 23,562 units in the same month in 2018, dropping by 4%. The decline is attributed to the ban imposed on non-filers as well as the recent surge in prices. Most auto companies have increased their prices 4-6 times in during the past year.
According to the mini-budget tabled in January, the ban is no longer in place on low-tiered vehicles, however, an official notification is yet to surface in this regard.
On the other hand, month-on-month sales increased by 16%. Topline Securities official, Syed Daniyal Adil believes that the numbers for auto sales are better than earlier anticipations.
January’s numbers are also better as the market is anticipating a new round of price hike due to 5% rupee depreciation in November and December.
Indus Motor Company
Indus Motor enjoyed a 16% growth in sales year-on-year in January 2019 thanks to strong advance bookings despite 5% and 45% decline in the sales of Hilux and Fortuner variants, respectively. The sales of Corolla variants increased by 26% year-on-year.
Honda Atlas sales saw a 3% year-on-year increase despite a 2% fall in BR-V sales. City and Civic sales increased 4% on a yearly basis. Despite witnessing a decline in sales in November last year, January proved to be a good month as people wanted to get their hands on new cars before the anticipated price hikes.
Pak Suzuki Motor Company
Pak Suzuki Motor Company’s sales declined by 15% year-on-year in January 2019. According to a report,
Pak Suzuki sales’ volume has fallen in every month since Aug 2018 except for Dec 2018. Sales’ decline was led by Mehran, Bolan, Swift and Ravi variants, down 37%, 27%, 28% and 11% respectively.
On a yearly basis, the sales of WagonR and Cultus increased by 15% and 7% respectively.