News Analysis |
In a statistical blow to the ‘Campaign Against the Monopoly of Big Three’ (CAMBT), the sales of locally assembled cars and LCVs posted 23 percent growth in 10MFY18 to 218,301 units from 177,463 in the corresponding period of last year despite an increase in vehicles’ prices.
Sales recorded 39pc year-on-year increase to 25,567 units in April. The significant projectile performance in the car segment was driven by record sales of Pak Suzuki Motors Limited (PSMCL) with the total sales volume of 14,781 units, data released by Pakistan Automotive Manufacturers Association (Pama) stated.
PSMCL sales surged by 61pc as Ravi and Wagon R numbers doubled during April. Other brands like Bolan, Swift, and Cultus showed an impressive rise of 89pc, 77pc, and 58pc respectively. According to an analyst at Topline Securities, Pak Suzuki delivered its March commitments in April, resulting in stronger figures in the latter. Overall sales of the company climbed to 122,075 in first 10 months of 2017-18, up 30pc from the same period of FY17.
Pak Suzuki had earlier raised the price in January by Rs 10,000-20,000 and by another Rs 20,000-50,000 this month, GVS earlier reported.
Indus Motor Company (IMC) recorded its second highest sales of 6,183 units, higher by 10pc largely driven by Fortuner going up by 147pc while Hilux and Corolla sales increased by 6pc and 4pc respectively. Overall IMC sales in 10MFY18 inched up by 2pc to 52,610 units from 51,383.
Read more: Pakistan’s auto industry off to a spectacular start in 2018
Honda Atlas Cars (HAC) sales swelled by 31pc to 4,603 units in which robust growth came from City due to its rising popularity amongst the upper middle class. Total sales of HAC in 10MFY18 grew by 38pc to 43,616 units from 31,639 units.
Tractor sales went higher by 27pc, owing to the continuation of lower sales tax of 5pc on tractors. Among companies, Al-Ghazi outperformed in tractors segment with growth of 35pc, while Millat increased by 24pc. Total tractor sales rose by 34pc in July-April 2017-218 to 60,239 units from 44,883 units in same period of 2016-17.
In trucks and buses segment, Master Motors outperformed industry growth by 63 percentage points (82pc versus industry growth of 19pc). Hinopak and Isuzu sales grew by 2pc and 25pc respectively on the back of higher construction activities driven by CPEC, Public Sector Development Program, and private sector growth.
The significant projectile performance in the car segment was driven by record sales of Pak Suzuki Motors Limited (PSMCL) with the total sales volume of 14,781 units, data released by Pakistan Automotive Manufacturers Association (Pama) stated.
This report has come as a surprise; in light of the vigorous social media campaign against the auto industry and the incoming investors that are set to distribute new cars into Pakistan by the end of this year. Also, experts had suggested that due to the fact that all three of these companies had hiked their prices in the first quarter of the fiscal year 18-19, not once but twice on all merchandise, the sales were expected to drop.
Read more: Pakistani auto-industry thrives during 2017!
Last month, Honda Atlas Cars Ltd (HACL), following the trend against its only two existing competitors Suzuki and Toyota, raised the prices of Honda Civic and City by Rs100,000 and BRV by Rs20,000 following devaluation of the rupee against the dollar. It had raised prices in January by Rs 50,000-60,000, resulting in public outrage, GVS earlier reported.
The trio has been increasing prices in this fashion for the past few months and in the very first quarter; there have been multiple increments per brand. Pak Suzuki had earlier raised the price in January by Rs 10,000-20,000 and by another Rs 20,000-50,000 this month, GVS earlier reported.
Pak Suzuki Motor Company (PSMC) has jacked up the already raised prices of its variants by up to Rs 50,000, effective from March 1st, 2018, which marks the second time the automaker has revised rates in an upward trajectory this year alone, before even hitting the second quarter. Hardly two months prior, the company had raised prices in the range of Rs 10,000-Rs 20,000 in a balancing act against the depreciating rupee. Regardless of the tides, the Big Three seem to be continuously defying the odds.