Lahore - Pakistan local car assemblers including LCVs, Vans and Jeeps posted 24 percent growth during 11MFY16. Continued growth can be attributed to auto financing due to decade low interest rates, taxi scheme, improving law & order situation and overall improvement in country’s economic situation. During 11MFY16, local vehicle sales stood at 201,151 units against 162,151 units during same period last year.

Amongst individual companies, Pak Suzuki’s (PSMC) sales increased 33 percent YoY to 118,629 units in 11MFY16 mainly led by Punjab Govt.’s Taxi Scheme.

Volumes remained flat MoM while they declined 22 percent YoY in May 2016 to 9,001 units due to completion of taxi scheme. Indus Motors (INDU) sold 58,531 units in 11MFY16 versus 51,485 units last year. Sales marginally improved in May 2016, up 1 percent YoY, coming in at 5,544 units.

It is important to note that delivery time for new corolla model continues and varies depending on the variant.

Honda Cars (HCAR) sold 23,800 units in 11MFY16 compared to 21,134 units in the same period last year. Sales improved 7 percent YoY to 2,507 in May 2016, but declined 9 percent MoM.

Experts believe that Honda City is the main contributor to HCAR’s sales growth and volumes of Honda Civic are expected to dry out now. Buyers are likely to prefer the new model of Civic (10th generation). Pre-booking for the same has already begun and the company is expected to launch the model in the next few months or so, as per our channel checks.

Pakistan tractor segment posted a decline of 28 percent YoY during 11MFY16 to reach 30,607 units. We attribute this decline to the delay in the launch of provincial tractor subsidy scheme of 25,000/29,000 tractors, which was announced by Punjab/Sindh Govt. in Budget FY16.