The automobile sector during first nine months of this year has witnessed a surge in productions of all its sub-sectors except farm tractors and jeeps. The buses have showed remarkable growth which is recorded at 82 per cent, Light Commercial Vehicles (LCVs) 68.5 percent, trucks 41.6 percent, cars 30.2 percent and two/three wheelers 21 per cent during July-March-2016 as compared to corresponding period last year.
However, during the period farms tractors and jeeps production declined by 38.6 per cent and 28.4 per cent respectively.
The latest statistics about performance of the sector on Sunday showed that sales of passenger cars and pickups increased due to lowest ever financing rates, improved real incomes and better economic and security conditions.
The current year's figures also showed a boost in sales which were due to Apna Rozgar Scheme by government of Punjab. The scheme came to close in March 2016 after running for nearly sixteen months and uplifting about 50,000 units of vans and pickups.
The data said in case of LCVs, 68.5 percent growth on account of increased sales of pickups during period under the said scheme while trucks also witnessed a growth of 41.6 per cent and sales of 37.5 percent on account of measures taken by government such as combination of stringent enforcement actions and policy interventions, whereby disguised/mis-declared import of trucks could be curbed.
The situation would further improve with expected imposition of age limit on import of used trucks.
The remarkable growth in buses recorded at 82 per cent is due to high demand by transporters on account of improvement in network of roads. The locally produced buses are being offered at highly competitive prices despite imposition of sales tax, compared to prices of imported buses.
Besides, the service and maintenance are not issues with local product compared to imported ones.
The data further showed that two/three wheeler sector continued its growth since 2001. Motivated by market expansion new entrant of international standing also entered into market and have set up a new manufacturing plant.
Nevertheless, there were closures and production losses at several units, however, the overall growth stayed at 20 percent.
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