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Saturday, February 11, 2012 E-Mail this article to a friend Printer Friendly Version
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Car sales rise 17% in 7 months of FY 2012
Staff Report
KARACHI: The sales of local automobile companies continued to show an upward trend with a growth of 17 percent to 96,900 units in different brands in the seven months of the current financial year 2011-12 as against 82,767 units in the corresponding period of last fiscal year.
Pakistan Automobiles Manufacturers Association (PAMA) revealed the data of auto sales (car, light commercial vehicles, and pickup) on Friday.
The growth in numbers was attributed to a low base effect of last year at times that sales growth registered contraction in the wake of low demand hit by floods. Moreover, the prices saw positive impact afterward in the current financial year with reduction in general sales tax (GST) and abolishment of Special Excise Duty (SED). The sales of cars and commercial vehicles went up by 2 percent on a yearly basis to 14,967 units in January 2012, while it went up significantly by 34 percent on monthly basis mainly due to low base effect as December 11 depicted lower sales due to the year-end trend.
However, tractor industry continued to suffer from lower production in the previous month, as major crop season resulted in a slight improvement in offtake and the assemblers restricted their production during the period.
Similarly, sales have been hit by 74 percent for Al-Ghazi Tractor Ltd and 61 percent for Millat Tractor Ltd in 7MFY12; however, with reduction in GST to 5 percent from 16 percent for CY12 with growth at a controlled rate to take the GST rate to 16 percent will help increase production and sales for the year. Hence, it is believed February 12 will depict a brighter picture for the tractor manufacturers. On a company-wise basis during January 2012, Pak Suzuki Motor Co reflected highest growth by 39 percent with increase in sales of all its products. Swift recorded second highest sales since its inception. Moreover, in January Liana has recorded no production for the second consecutive month, which is likely due to lower demand and higher assembled units in inventory, while the company is also looking to phase out its Alto by June 12.
Indus Motor Company (IMC), on the other hand, reflected 8 percent lower sales as compared to last year where in January 11 the company sold higher number of vehicles in the wake of new year and subdued demand during the year due to floods in the country; however, the company posted highest growth by 72 percent on yearly basis primarily on account of new year and capturing Hondas lost share due to shutdown of its production. While, Honda again posted no production during January 12 as supply disruption in Thailand has caused the company to shutdown its production facility.
It is expected that local auto assemblers despite higher input cost and regulatory issues will be able to improve their sales. In addition, the current month may witness slight improvement as indecisive buyers may rush once car prices are jacked up in order to maintain their profitability margins, analysts said.
Daily Times - Leading News Resource of Pakistan
Share | |
Car sales rise 17% in 7 months of FY 2012
Staff Report
KARACHI: The sales of local automobile companies continued to show an upward trend with a growth of 17 percent to 96,900 units in different brands in the seven months of the current financial year 2011-12 as against 82,767 units in the corresponding period of last fiscal year.
Pakistan Automobiles Manufacturers Association (PAMA) revealed the data of auto sales (car, light commercial vehicles, and pickup) on Friday.
The growth in numbers was attributed to a low base effect of last year at times that sales growth registered contraction in the wake of low demand hit by floods. Moreover, the prices saw positive impact afterward in the current financial year with reduction in general sales tax (GST) and abolishment of Special Excise Duty (SED). The sales of cars and commercial vehicles went up by 2 percent on a yearly basis to 14,967 units in January 2012, while it went up significantly by 34 percent on monthly basis mainly due to low base effect as December 11 depicted lower sales due to the year-end trend.
However, tractor industry continued to suffer from lower production in the previous month, as major crop season resulted in a slight improvement in offtake and the assemblers restricted their production during the period.
Similarly, sales have been hit by 74 percent for Al-Ghazi Tractor Ltd and 61 percent for Millat Tractor Ltd in 7MFY12; however, with reduction in GST to 5 percent from 16 percent for CY12 with growth at a controlled rate to take the GST rate to 16 percent will help increase production and sales for the year. Hence, it is believed February 12 will depict a brighter picture for the tractor manufacturers. On a company-wise basis during January 2012, Pak Suzuki Motor Co reflected highest growth by 39 percent with increase in sales of all its products. Swift recorded second highest sales since its inception. Moreover, in January Liana has recorded no production for the second consecutive month, which is likely due to lower demand and higher assembled units in inventory, while the company is also looking to phase out its Alto by June 12.
Indus Motor Company (IMC), on the other hand, reflected 8 percent lower sales as compared to last year where in January 11 the company sold higher number of vehicles in the wake of new year and subdued demand during the year due to floods in the country; however, the company posted highest growth by 72 percent on yearly basis primarily on account of new year and capturing Hondas lost share due to shutdown of its production. While, Honda again posted no production during January 12 as supply disruption in Thailand has caused the company to shutdown its production facility.
It is expected that local auto assemblers despite higher input cost and regulatory issues will be able to improve their sales. In addition, the current month may witness slight improvement as indecisive buyers may rush once car prices are jacked up in order to maintain their profitability margins, analysts said.
Daily Times - Leading News Resource of Pakistan
i am poor but i ride it when go pakistan 
