The production and sales of tractors increased by 70 percent during FY 2016-17 over the corresponding period of 2015-16 as the industry sold 54,992 farm tractors against last year's sales of 33,986 units. Millat Tractor Ltd sold 34,506 Massey Ferguson tractors against last year's sale of 22,479 pieces from July to June. The sales of Fiat tractor manufactured by Al-Ghazi Tractor Ltd increased from 12,775 to 19,833 pieces during this period.
Executives of the industry told Business Recorder that the two main manufacturers Millat Tractors and Al-ghazi tractors Ltd worked in two shifts to produce 21,770 more tractors to meet the rising demand of the tractors across the country. They attributed the brisk sale of tractors to the government's pro-local industry policies including reduction of GST from 16 to 5 percent, increased agri-credit loan, subsidy on fertilizer, better prices of agriculture commodities and improved buying power of farmers.
They said that China-Pakistan Economic Corridor and construction of farm to market roads have also given a tremendous boost to the depressed tractor industry in Pakistan as farm tractor is being used for multiple purposes in rural areas, as an engine of economic growth. A large number of farm tractors are also being utilized for the under construction CPEC projects, which are collection of infrastructure projects throughout Pakistan.
Meanwhile the Pakistan Automotive Manufacturers Association (PAMA) has also released data of production and sales of cars, buses, trucks, motor cycles and three wheelers from July 2016 till June 2017. According to PAMA data, 1,85,783 passenger cars were sold against last year's sales of 1,81,145 vehicles. There was a marginal increase of 4,638 units. The share of 1300 cc and above cars was 93,925 to which Honda civic and city contributed 37,004 cars and Toyota 52,676 cars. Honda cars sales increased from 25,000 to 37,000 in one year.
In bikes and three wheelers category Honda motorcycles sold a record number of 9,60,105 motor cycles against last year's sales of 8,10,539. In all a total of 16,25,080 motor cycles and three wheelers were sold during 2016-17 against 13,58,643 sales of corresponding period of 2015-16.