KARACHI – Car sales during the first two months of the new fiscal year surged by 40 percent to 52290 units.
According to a report of leading brokerage house-Insight Securities, the launch of new products, subsidies and CPEC related demand has kicked off during FY2018 for the auto sector volumes. As per the recent numbers released by Pakistan Automotive Manufacturers Association (PAMA), August 2017 Automobile sales (Cars, LCVs, HCVs & Tractors) recorded 36 percent growth on month to month basis to reach at 28000 units.
Car & LCVs sales continued its growth trajectory, posting 25% increase in two months to 22000 units, while subsidies and better farmer income pushed tractor sales up by 115 percent compared to same period last year. Trucks and buses segment also recorded decent growth of 33 percent on year on year basis.
The brokerage house while giving the outlook for current fiscal year explained that the industry of car & LCV sales to reach 231,000 units, up 8.4 percent from preceding year.
Similarly, tractors sales are likely to rise to 60,000 up 10 percent, while Trucks/buses could surge to 10,000 (up 20%). Near term drivers for the industry sales would be i) renewed interest in Corolla after facelift, ii) strong tractor sales on the back of subsidies, iii) expected Punjab Govt. schemes and iv) CPEC led demand for heavy vehicles. While meaningful rupee depreciation would be the key risk for the auto demand because of resultant higher vehicle prices and costlier leasing.