Car sales down by 6% in July-Aug
The locally manufactured vehicles sales (including LCVs, Vans, and Jeep) have declined by 6 percent in July-Aug 2018 (the first two months of the current fiscal) with the sale of 39,006 compared to 41,671 units sold in the same period last year.
However, the car sales were down by 2.1 percent in July-August to 34,264 units compared to 35,001 units in the same period last year.
The car sales of Pak Suzuki Motor Company (PSMC) have declined by 12 percent in the last two months as the company sold only 19,578 units in last two months compared to 22,336 units sold in the same period last year. The sales of Cultus, Mehran, Bolan, and Ravi witness a decline, while Suzuki Swift and WaganR went up during the period.
According to the analyst, “the sales of locally manufacturers car dropped as the previous government has imposed a condition to sell the vehicle to the filer only. This condition hurts the vehicle’s manufacturers in the months of July-Aug as the budget 2018-19 is implemented from July 1, 2018,” an analyst of a brokerage house said.
The market experts said that banks are financing for the new cars for drivers of Uber and Careem, therefore, its sales are stabled for the last few months.
Another reason of slowdown in car sales was due to higher car prices as all companies raised its car prices 3-4 times during last fiscal year and continuous Pak-rupee depreciation against the dollar.
The major reason of low car sales is the restriction imposed by the government on non-filers for booking and registration of new cars, and resumption of import of used and new cars through personal transfer or baggage scheme.
Honda (HCAR) sales declined to 8,942 units in July-Aug 2018, down by 3 percent compared to 9,176 units sold in July-Aug 2017. However, its BR-V (jeep) went down to 864 units sold in July-Aug compared to 1,411 units sold in the same period last year.
Pak Suzuki Motor Company (PSMC) sales have gone down by 12 percent to 19,578 units in the month of July-Aug compared to 22,336 units sold in the same period last year. The sales of Suzuki WagonR and Swift have gone up to 5,222 units and 839 in July-Aug 2018 respectively compared to 4,137 units and 722 units sold in the same period last year. However, the sales of Cultus and Swift have declined during the period.
The PSMC has issued a notification to shut down the plant of Mehran VX (Without Air-conditioner) from November 2018, which may also affect its total sale in the current fiscal year. There are also rumours that the PSMC will also shut down its Mehran VXR (With AC) from April 2019.
Indus Motors (INDU) sold Corolla 10,486 units in July-Aug 2018 up by a modest 3 percent compared to 10,159 units in the same period last year. Focus on high margin segment has borne fruit as sales of Fortuner have gone down to 424 units compared to 535 units sold in July-August 2017. However, the company sold 1,292 units of Toyota Hilux in two-months compared to 967 units sold in July-Aug 2017.