With the exception of a few heavy vehicles, the overall auto sector enjoyed robust growth in the nine months of the current fiscal year (9MFY21), with car sales going up 31.5 per cent.
According to data compiled by a local media report, sales of jeeps were up 157.6pc in 9MFY21, followed by light commercial vehicles/pickups which grew by 41.4pc, tractors 57.2pc and two/three-wheelers 22pc.
A total of 112,244 units of locally-assembled cars were sold during 9MFY21 versus 85,330 units in the same period last fiscal year. March 2021 also ended on a positive note with car sales soaring to 17,105 units from 13,570 units in February 2021. Sales in March 2020 were at 5,796 units owing to countrywide lockdown imposed in the third week which was extended to April 2020.
In farm machinery, Massey Ferguson and Fiat sold 25,927 and 10,999 tractors during 9MFY21 from 14,611 and 8,733 units in the same period in FY20.
In two-wheelers, United Auto Motorcycle and Road Prince bikes sales reached to 286,899 and 111,570 in the last nine months of the current fiscal year from 242,387 and 91,595 units.
In three-wheelers, Qingqi, Sazgar, Road Prince and United sold 14,646, 11,790, 7,498 and 5,556 as compared to 10,577, 9,500, 7,837 and 4,751 units.
Overall truck sales stood lower at 2,700 units in 9MFY21 as against 2,723 units while total bus sales recorded at 514 units as compared to 532 units in 9MFY20.
According to channel checks, the OEMs have strong order backlogs at present, where we expect present volume growth to be sustained for the remainder of 2021. Assuming the PKR remains stable and global commodity prices moderate, it is believed that margins will improve further due to higher utilisation levels.
However, industry experts say that the emerging global semiconductor shortage may test the sector’s ability to push deliveries in the near term and, while the increase in competition from new entrants such as the Proton Saga and Hyundai Elantra, among others may keep a check on sales growth,.