Lahore
The local car assemblers, including LCVs, Vans and Jeeps, registered 57 percent growth during 7MFY16 owing to rise in auto financing due to 42-year low interest rates, taxi scheme, improving law & order situation and overall improvement in economic situation in the country. During 7MFY16, local vehicle sales stood at 133,437 units versus 85,135 units in the same period last year.
Exports now forecast local car sales to grow at 15 percent in FY16 to reach at 206,777 units. This lower growth is due to 1) expected completion of taxi scheme in Feb 2016 and 2) decline in Civic volumes in anticipation of new model, which is expected to hit the market in mid 2016.
Amongst individual companies, PSMC sales increased by 90 percent YoY to 83,188 units in 7MFY16 primarily due to Punjab Govt. Taxi Scheme.
Volumes increased by 59 percent YoY (+3 percent MoM) in Jan 2016 primarily due to Taxi Scheme. Contrary to historical trend of high growth in the month of Jan 2016, PSMC volumetric growth in Jan 2016 remained 3 percent due to high base of Dec 2015 due to Taxi Scheme.
INDU sold 36,448 units in 7MFY16 versus 29,298 units in 7MFY15.
In Jan 2016, INDU sales stood at 5,967 units, down 7 percent YoY due to high base of last January because new model of Corolla was launched last year. On MoM basis, sales increased by 26 percent YoY due to New-year registration phenomenon. It is important to note that delivery time for new corolla model is still hovering in the range of 2-4 months depending on the variant.
HCAR sold 13,625 units in 7MFY16 compared to 11,799 units in the same period last year. In Jan 2016, HCAR sold 3,015 units, down 6 percent YoY (up 193 percent MoM). Experts believe that Honda City remained the major contributor in this growth.
Volumes of Honda Civic are expected to dry out in coming months in anticipation of new model launch in mid 2016.