LAHORE: Car sales increased by 48pc YoY in November this year to 14,454 units, the Pakistan Automotive Manufacturers Association (PAMA) reported on Friday.
Indus Motor Company Limited (INDU), Honda Atlas Cars (Pakistan) Limited (HCAR) and Pak Suzuki Motor Company (PSMC) registered sales increases of 87pc YoY, 72pc YoY and 16pc YoY, respectively.
The same, including Lucky Motor Corporation (KIA, a non-member of PAMA, is up by 63pc YoY.
Syed Fawad Basir, a senior research analyst at Topline Securities Limited said this is the first YoY increase in FY21 for PSMC as some of the production issues have been resolved.
He added that car sales also increased by 3pc MoM in November. The increase was driven by PSMC’s increase of 12pc MoM as Cultus sales grew by 86pc MoM followed by Ravi sales improving by 255pc MoM.
He maintained that HCAR’s sales were the same as last month. INDU’s volumes declined by 10pc MoM.
The senior research analyst added that new entrants into Pakistan’s autospace Hyundai Nishat Motor (Private) Limited sold 472 units (+63pc MoM) in November, while Lucky Motor sold around 1,500 units, as per our channel checks.
Basir said that Atlas Honda (ATLH) recorded motorbike sales of 108,005 units in November, up 14pc YoY. In 5MFY21, sales have increased by 19pc YoY.
Tractor sales in November are up 77pc YoY, while decreasing by 28pc MoM.
He added that Millat Tractors (MTL) recorded increase of 67pc YoY (-22pc MoM) while Al Ghazi Tractors (AGTL) sales increased by 116pc YoY (-39pc MoM), respectively.
We expect demand for cars to grow stronger owing to the low interest rates environment and pickup in economic activity, he said.
Basir said topline securities are overweight on Pak automobiles with buy ratings on INDU, HCAR and MTL.
