KARACHI: Sales of local cars dropped 32% to 39,938 units in the first four months of the current fiscal year 2012-13 compared to 58,801 units in the same period last year, as a host of reasons influenced the market.
In October alone, sales of cars including light commercial vehicles, vans and jeeps fell to a 16-month low at 9,397 units, down 3% from the previous month, according to data released by the Pakistan Automobile Manufacturers Association (PAMA).
Auto analysts attribute the decline in vehicle sales to a variety of reasons. Atif Zafar, an analyst at JS Global Capital, said people are waiting for ease in import rules for used Japanese cars and that was why they were holding back money and not buying local vehicles; adding that sales of Pak Suzuki Motor Company declined due to an increase in prices in the previous month, along with discontinuation of the Punjab Government’s taxi schem.
In a report, Summit Capital said overall industry sales were lower because of a higher base effect following the end of Government of Punjab’s cab scheme, massive increase in prices of various variants due to depreciation of the rupee and emphasis on compliance with Euro-II emission standards. The suspension of of production of Suzuki Alto – a 1,000cc car – has also shifted interest of the buyers to imported cars.
According to breakdown of data, sales of Pak Suzuki Motor Company slid 35% to 22,753 units in four months (July-October) against 34,877 units sold in the same period of last year. In October, the company’s sales stood at 5,094 units, down 40% from 8,462 units in the same month last year and lower by 16% from 6,042 units in the previous month.
Similarly, Indus Motor’s sales declined 38% to 11,003 units compared to the same period of last year.
However, in October, Indus Motor’s month-on-month sales picked up and stood at 2,704 units, up 28%. Major contribution to the increase in sales came from a 22% month-on-month growth in Corolla sales to 2,155 units and 57% growth in Hilux sales to 549 units.