LAHORE: Auto sales witnessed a significant decline of 29pc in the first month (July) of the fiscal year 2019-20, as compared to the same month of last financial year (FY19).
As per the experts, the drop in sales is mainly attributable to continuous hike in auto prices (9-40pc) during the last 12 months, federal excise duty implied in the budget for 2019-20, and an increase in the cost of fuel.
Honda Atlas Cars (Pakistan) Limited (HCAR -66pc) was the biggest contributor to the industry’s decline in July, followed by Indus Motors Company (INDU -56pc) and Pak Suzuki Motor Company (PSMC -23pc).
INDU’s decline of 56pc in July remained the highest decline the company has witnessed in the last five years. The significant attrition in the sales volume is mainly due to a 57pc drop in the sales of its Corolla variant. In addition, the sales of Fortuner and Hilux also declined by 66pc and 48pc respectively.
Meanwhile, PSMC’s 23pc decline in July was led by Mehran, sales of which were down by 89pc. Bolan and Ravi variants were also down by 75pc and 30pc respectively.
It has been observed that Wagon-R has likely lost its market share to Alto 660cc as both variants have no material difference in their list price. The sales of Wagon-R were recorded at only 843 units (-70pc YoY) while the sales of Alto were recorded at 4,584 units. In addition, the sales of Suzuki Swift were down by 64pc as compared to the same period last year.
Moreover, HCAR’s 66pc decline was the highest among its peers. Sales of City and Civic fell by 68pc YoY, while BR-V sales were down by 35pc.
Atlas Honda (ATLH) witnessed a decline of 11pc YoY in motorbike sales (80,005 units in July).
Excellent report PakistanToday on very important subject of Pakistan Automotive Industry producing Indus Motor licensee of TTK affiliate Toyota Motor Corporation, Japan Exclusive assembler licensee Indus Motors Corporation with experience of catering to Pakistan market on TTK standards of locally assembled, exactly what is supplied from Japan.
I would suggest The Competition Authority, Government of Pakistan to assist Toyota pride product assembled by the House of Indus Motors the company listed at the Pakistan Stock Exchanges with quality criteria. It is the wish of every Pakistan that our products manufactured in motherland should be exported as a gift to the world markets which was black marketed for long long time 95% of the production and sold at a premium in the black market by speculators. It is not a problem TTK (Toyoda Tsusho Kaisha) Japan with local offices in Pakistan will buy all production to sell to the Chinese market at a premium price by Pakistan has bi-lateral treaty with China with accession to Pakistan to be tax/duty free in China if its assembled will get a previleged treatment from Chinese Consumers to buy at a premium like hot cakes. The Indus Motors Ltd., has the beacon to China market for the FTA/PTA bilateral agreement with the China and the CEPAC agreements. As the Pakistan’s business community hails PM’s decision to form CPEC Authority and sell Pakistan Assembled Toyota Corolla and the house of Indus Motors to sell the world class Corolla, the local assembled SUV, than 4×4, and other Gathia grade production reccomended by JD Powers Rating Authority for advance payment for the order booked from Pakistan, in view of their best quality admired by the world for Road Safety standards.