Pakistan auto sales including Light Commercial Vehicles (LCVs) vans and jeeps have witnessed 20 percent growth YoY, following supportive macroeconomic environment and upcoming general elections 2018. According to the auto data released by Pakistan Automotive Manufacturers Association (PAMA) for the month of June 2018, Honda cars have shown the highest growth amongst its peers, clocking in at 31 percent on YoY basis to a total of 51,494 units.
The growth is mostly due to 302 percent increase in BR-Vs sales in 4QFY17. The company has posted 16 per cent growth from City and Civic models. Pak Suzuki Motor Company (PSMC) depicted 26 percent growth, sold 144,070 units cumulatively. This growth can be accredited to swelling growth of Wagon-R (up by 65pc), while Cultus (up by 20pc) and Mehran (up by 22pc).
Similarly, Indus Motors Company (IMC) sold 63,068 units in FY18 up by a modest 5 percent YoY. Focus on high margin segment has borne fruit as sales of Fortuner and Hilux have gone up a staggering 204 percent and 27 percent respectively. However, sales of Corolla remained dull (down by 2pc) as the company continued to be plagued by capacity constraints.
Topline Securities said that for the fiscal year ended 2018, Pakistan auto sales (including LCVs Vans and Jeeps) rose by 21 percent YoY with growth seen in all segments. The strong performance was due to a multitude of reasons ranging from supportive macroeconomic environment, cheaper financing, demand from ride hailing services, as well as demand generated from election activity, it said. In June 2018, auto sales were up 20 percent YoY whereas it was down 15 percent MoM due to Eid Holidays, it maintained.
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