Car sales up by 24pc

Pakistan Observer - - ECONOMY WATCH -

KARACHI—Lo­cal car sales in­clud­ing light com­mer­cial ve­hi­cles, vans and jeeps have jumped by 24% dur­ing the first 11 months of fis­cal year 2015-16 com­pared to the same pe­riod of pre­vi­ous fis­cal year, ac­cord­ing to lat­est data of the Pak­istan Automotive Man­u­fac­tur­ers As­so­ci­a­tion (Pama).

The con­tin­ued growth in car sales can be at­trib­uted to auto fi­nanc­ing due to decades-low in­ter­est rates, Pun­jab taxi scheme, im­prov­ing se­cu­rity sit­u­a­tion and over­all im­prove­ment in the coun­try’s eco­nomic sit­u­a­tion, To­pline Se­cu­ri­ties re­ported.

Dur­ing the first 11 months of 2015-16, lo­cal ve­hi­cle sales stood at 201,151 units against 162,151 units in the same pe­riod of last year.

Amongst in­di­vid­ual com­pa­nies, Pak Suzuki’s sales in­creased 33 per cent year-on-year to 118,629 units in 11 months mainly led by the Pun­jab taxi scheme.

Its vol­umes re­mained flat month-on-month while they de­clined 22 per cent year-on-year in May 2016 to 9,001 units due to end of the taxi scheme.

In­dus Mo­tor, the mak­ers of Toy­ota Corolla sold 58,531 units in July-May 2015-16 com­pared to 51,485 units last year. Its sales marginally im­proved in May 2016, up 1 per cent year-on-year, com­ing in at 5,544 units.

Honda At­las Cars sold 23,800 units in the first 11 months of 2015-16 com­pared to 21,134 units in the same pe­riod last year. Its sales im­proved 7 per cent year-on-year to 2,507 in May 2016, but de­clined 9 per cent month-on-month.

Car sales ac­cel­er­ate on cheap fi­nanc­ing, taxi scheme

“We be­lieve that Honda City is the main con­trib­u­tor to Honda At­las Cars’ sales growth as vol­umes of Honda Civic are ex­pected to de­cline. Buy­ers are likely to pre­fer the new model of Civic (10th gen­er­a­tion) in­stead of buy­ing the cur­rent model. The pre-book­ing of the new Civic has al­ready be­gun this week and the com­pany is ex­pected to launch the model in the next few months or so,” the re­port added.—Agen­cies

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