Lahore - Pakistan local car assemblers, including LCVs, Vans and Jeeps sold 13,932 units in July 2016, a decline of 12 percent YoY.

Analysts at Topline Securities attribute this decline due to extended holidays as a result of Eid which translated into lesser working days.

They expect car sales to remain robust in FY17 in spite of no Taxi Scheme. The top picks of the analyst include PSMC, which will be launching a new model, Celerio (1,000cc category) in later half of this year, and Indus Motors (INDU), due to continued demand for Corolla.

Sales of PSMC fell 19 percent YoY in Jul 2016 to 7,633 units. The decline in overall units was due to culmination of Punjab Taxi Scheme earlier this year, as expected. Excluding taxi units (Ravi and Bolan), sales have grown 36 percent YoY to 6,002 units. INDU sold 4,178 units in Jul 2016, declining 2 percent YoY. This can be attributed to lower number of working days compared to last year.

It is important to note that delivery time for new corolla model continues and varies depending on the variant. HCAR sold 2,121 units in the outgoing month registering 15 percent YoY increase. Sales remained strong MoM too as they grew by 10 percent, despite less number of working days. The analysts believe that Honda City is the main contributor to HCAR’s sales growth and volumes of new model of Honda Civic are expected to pick up considering demand from pre-booking and response at launch.

Civic’s launch attracted attention from prospective buyers with more interest towards the 1.5L Turbo variant, which is priced at Rs3.0 million; the 1.8L variant is priced at Rs2.4 million.