Car sales slow down in first 2 months of FY17

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Karachi—Sales of locally assembled vehicles, including light commercial vehicles, vans and jeeps, dropped 13% to 31,585 units in the first two months of financial year 2016-17 compared to the corresponding period of previous year, shows the data released recently.
However, the demand stood higher by 19.7% in July and August 2016 if taxi units sold last year under Punjab’s one-off Apna Rozgar Taxi Scheme were excluded. “This was in line with expectations,” commented research house Topline Securities in its report.
“We expect car sales to remain robust in FY17 despite the conclusion of taxi scheme and see demand hitting 217,000 units, an increase of 30% year-on-year (excluding taxi units),” it said.
The research house based its expectation on the likely launch of a new model, Celerio 1,000cc, by Pak Suzuki Motor Company by the end of this year and continued demand for Corolla produced by Indus Motor Company.
Pak Suzuki Motor Company – the largest assembler by market share – sold 16,662 vehicles in the first two months (July and August) of FY17, registering a decline of 26% year-on-year.
This was primarily because of reduced sales of Ravi and Bolan variants because of the end of taxi scheme.
However, sales were healthy excluding the taxi units as the company sold 10,907 vehicles, up 12%.
Sales of Indus Motor edged down 2% in the first two months as July saw less working days due to extended holidays. The company sold 9,628 units during the period.
Sales of Corolla fell 8% month-on-month to 4,572 units, thanks to the introduction of a new Civic model by rival Honda Atlas Cars. Hilux demand, however, accelerated 61% month-on-month to 809 units.—Agencies