LAHORE - The auto sales, including LCV’s and Jeeps, continued to register robust sales trend during 10MFY17 (ex-Taxi scheme).
In April 2017, car sales came at par with expectations. On MoM basis, volumes witnessed a contraction of 11 percent (5-year average contraction of 6 percent MoM), mainly due to phase out of old ‘Cultus’ and 28 percent MoM contraction in volumes of Suzuki ‘Bolan’ and ‘Ravi’.
Pak Suzuki Motor Company’s (PSMC) volumes remained strong (ex-Taxi scheme) due to healthy sales volumes of ‘Wagon-R’, while strong LCV sales further supported volumes during 10MFY17. Volumes of ‘Cultus’ went down 13 percent YoY in the outgoing month, due to phase out of the older version as PSMC launched all new Suzuki Cultus on April 22.
Indus Motors (INDU) witnessed contraction during 10MFY17 due to operational issues. ‘Fortuner’ witnessed a surge of +.2.5x YoY. The waiting period on the car is more than 6 months, highest among INDU’s product line up. Honda Car (HCAR) sales continued to depict buoyant trend. Moreover, as per channel checks, there is premium of 350k on the newly launch BRV where order books have been filled till November 2016.
Tractor sales continue to follow the upward trajectory with off-take growing 69 percent in 10MFY17. It is expected lower retail prices (reduced GST), improving crop yield and continuation of fertiliser subsidy to alleviate liquidity concerns among farmers, thus improving the overall tractor off-take during FY17. Moreover, with election year approaching, announcements of tractor subsidies in the upcoming federal budget cannot be ruled out.
