LAHORE - The tractors sales witnessed an upsurge of 41 percent to 5,663 units in May 2017, resulting in 65 percent growth during 11 months of FY17 to 50,546 tractors due to the reduction of GST to 5 percent from 16 percent on tractors. During the month, MTL witnessed an astronomical growth of 53 percent YoY to 5,663 tractors while AGTL managed a 25 percent YoY rise to 2,211 tractors, respectively. With an agriculture friendly FY18 budget and low cost financing, it is anticipated strong demand for tractors to continue on the back of provincial subsidies and lower retail prices as GST rates fall.
PAMA released its latest data for May 2017 where Pakistan’s locally assembled passenger car sales saw a growth of 16 percent YoY to 20,720 units while MoM sales also jumped by 11 percent. However, during 11MFY17, volumes declined by 3 percent YoY to 197,657 units. The MoM surge in volumes came on the back of impressive HCAR sales coupled with record sales for PSMC’s Wagon R & Cultus even as INDU saw a drop in volumes of 13 percent MoM. During May 2017, HCAR volumes showed a massive growth of 86 percent YoY, while PSMC volumes rose by 24 percent & INDU volumes saw a fall of 11 percent YoY, respectively. Further, HCV sales showed a robust growth of 22 percent YoY in May’17, while 11MFY17 volumes grew by a huge 36 percent YoY to clock in at 7,907 units against 5,818 units. Also, tractors sales have bounced back after a dim start to the fiscal year to 5,663 units in May’17, up 41 percent YoY with support coming from MTL & AGTL, both of which increased sales volume by 53/25 percent YoY. This surge can be attributed to implementation of reduced GST rates and improved farmer income.