Positive growth increases sales of tractors, motorcycles

The positive growth of 3.4 percent in agriculture sector has increased the sales of tractors, motor cycles and three wheelers during the past eleven months as more disposable funds were available to the farming community mainly due to unprecedented 12.4 percent increase in the sugarcane and 16.3 percent increase in maize production that provided about Rs 100 billion more to the rural economy.
According to the data released by the Pakistan Automotive Manufacturers Association about the monthly production and sales of the industry, till May 31, 1.501393 million motorcycles and three wheelers of different makes were sold from July to May almost 0.3 million more than the corresponding period of the last year. Most popular Honda sold 8,88,640 motor cycles against previous year sale of 7,48,911 units. Its nearest rival United Auto Motorcycle sold 2,98,329 motor cycles against sale of 2,36,567 pieces of corresponding period of last year.
Executives of the Tractor industry told Business Recorder that reduction of GST from 16 percent to 5 percent and the construction of China-Pakistan Economic Corridor coupled with the country's overall economic growth of 5.28 percent has uplifted the local tractor and vending industry.
They said the two main manufacturing units sold about 20,000 tractors more than the previous year's sale of 30,607 tractors. Alghazi tractors sold 18,317 Fiat tractors and Millat tractors sold 31,606 Messey Ferguson tractors during past 11 months. It is worth mentioning that the main buyers of tractor, motorcycles and three wheelers is the agriculture sector which accounts for 19.53 percent of GDP and 42.3 percent of employment. Cotton Ginning witnessed growth of 5.59 percent against the negative growth of 22.12 percent in the previous year. Livestock growth was recorded at 3.43 percent against 3.36 percent last year. Growth of overall manufacturing registered at 5.27 percent compared to 3.66 percent last year. Large scale manufacturing growth improved to 4.93 percent from 2.94 percent last year.