Car sales rise 24 per­cent to 70,040 units in four months

Daily Messenger - - Biz -

KARACHI: Pas­sen­ger car sales jumped 24 per cent to 70,040 units dur­ing the first four months of the cur­rent fis­cal 2017/18 as con­sumer buy­ing power im­proved on decades-low fi­nanc­ing rate, an­a­lysts said on Mon­day.

Pak­istan Au­to­mo­tive Man­u­fac­tur­ers As­so­ci­a­tion (Pama) recorded pas­sen­ger car sales at 55,859 units in the July-Oc­to­ber pe­riod of FY2017.

In Oc­to­ber alone, lo­cal as­sem­blers sold 19,400 cars, show­ing a 34 per cent in­crease over the same month a year ear­lier. “The monthly sales were high­est in the his­tory,” Mo­hammed So­hail, chief ex­ec­u­tive at Topline Se­cu­ri­ties said.

So­hail at­trib­uted the up­ward trend to im­prov­ing buy­ing power, grow­ing pop­u­lar­ity of ride-shar­ing in the coun­try, like Uber and Ca­reem, and low auto fi­nanc­ing rate. An­a­lysts said the gov­ern­ment’s re­cent mea­sures to tighten the noose around used car im­ports also led to a surge in the de­mand of lo­cal cars.

The gov­ern­ment is likely to bind car ex­porters to pay du­ties on used cars in dol­lars from next year. Cars are im­ported in Pak­istan un­der per­sonal bag­gage and gift scheme un­der which over­seas Pak­ista­nis could ex­port cars to the coun­try.

Though reg­u­la­tory duty was not im­posed on small used cars, their ar­rival is slow due to the re­stric­tions, ac­cord­ing to the an­a­lysts. Topline Se­cu­ri­ties, in a re­port, said Pak Suzuki was the ma­jor ben­e­fi­ciary as the ma­jor­ity of used car im­ports fall un­der lower en­gine ca­pac­ity seg­ment.

Pak Suzuki’s sales were up 36 per cent to 46,941 units in the Ju­lyOc­to­ber pe­riod. Honda’s car sales grew 55 per cent to 17,110 units due to the suc­cess of new mod­els: Civic/BRV and the re­cently re­vamped City.

Toy­ota recorded a 10 per cent rise in car sales dur­ing the four months. The bro­ker­age said the in­dus­try’s sales grew 32 per cent to 83,809 units in Ju­lyOc­to­ber. A to­tal of 21,757 trac­tors were sold dur­ing the pe­riod un­der re­view. Trac­tor sales are ex­pected to in­crease due to lower gen­eral sales tax, a Rs2 bil­lion sub­sidy on trac­tor buy­ing by Sindh gov­ern­ment, and fer­tiliser cash sub­sidy.

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