Car sales fall 7pc to 41,405 units

car-sales-fall-7pc-to-41405-units

Car sales fall 7pc to 41,405 units KARACHI: Car sales fell around seven per cent to 41,405 units during the July-September quarter compared to 44,372 a year ago, mainly due to completion of Suzuki Bolan deliveries under Punjab taxi scheme.

Sales of Bolan and Ravi pickup, which was also being delivered under the scheme, plunged to 4,690 and 4,510 units during the quarter from 9,896 and 9,097 during the same period of the last year, according to figures released by the Pakistan Automotive Manufacturers Association.

However, Suzuki Swift and Wagon R sales jumped to 1,046 and 3,385 units in July-September 2016-17 from 978 and 1,797 units in the same period of the last fiscal year.

Sales of Cultus edged lower to 3,322 from 3,520 units while those of Mehran were down to 8,248 units from 8,482.

Toyota Corolla sales also dropped to 12,655 units from 13,512 due to introduction of new Honda Civic model. Combined sales of Honda City and Civic rose to 8,059 units from 6,184 a year ago.

Heavy vehicle segment continued to give robust performance as overall truck sales — including Hino, Nissan, Master and Isuzu — soared to 485 units from 262. Sales of Hino buses reached 274 units from 170. Isuzu sold 31 buses in July-September 2016-17 compared to 21 units a year ago. Sales of Master, which sold only one bus during the quarter a year ago, stood at 26 units this time around.

In the four-by-four category, Toyota Fortuner sales stood at 145 units in the outgoing quarter as compared to 158 units a year earlier. Production and sales of Sigma Defender were zero in July-September 2016-17 as against 119 and 84 units in the previous fiscal year.

In pickups, Toyota Hilux sales improved to 1,585 units from 1,097.

As for tractors, sales of Fiat and Massey Ferguson increased to 2,426 and 4,573 units from 2,131 and 4,392.

Honda bike sales increased to 210,006 units during the period under review from 188,751 units a year ago while Suzuki bike sales inched up to 4,323 units from 4,263. DYL Motorcycles managed to sell 2,287 units as compared to 2,103 units. Yamaha sold 3,052 units during the three months as compared to 4,835 units a year earlier.

Sales of Road Prince and United motorcycles rose to 51,865 and 72,966 units from 37,467 and 66,204. In three-wheelers, Qingqi and Sazgar sales increased to 7,192 and 4,822 units from 6,721 and 3,196.

Hashim Sohail of Topline Securities said Pak Suzuki was likely to launch 1,000cc Celerio during the current quarter (October-December) of this fiscal year. The car maker’s overall sales during the outgoing quarter stood at 25,201 units, a year-on-year decline of 25pc due to lower sales of Ravi and Bolan.

He attributed the increase in tractor sales to 5pc reduction in general sales tax and improved farm economics. Moreover, roll-out of Kissan Package and improving farmer income after a pick-up in commodity prices are expected to improve sales during the year.

This year’s budget is full of incentives for the agriculture sector, including reduction in urea prices and financing rates. This should help improve liquidity with farmers resulting in better off-take of tractors going forward, Mr Sohail believed.

He cited growth in heavy vehicle sales to enhanced economic activity due to China-Pakistan Economic Corridor and improving law and order.

Source: http://www.dawn.com/news/1289771/car-sales-fall-7pc-to-41405-units

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