Pakistan Autos_Seasonal decline in Ramazan
- The total industry sales in Apr’22 clocked in at 27,669 vehicles (+25%YoY/-17%MoM), consisting of 18,625 passenger cars (+29%YoY/-18%MoM), 3,745 LCVs (+34YoY/-14% MoM), and 397 trucks (+41%YoY/-21%MoM). The decline in volumes is attributed to the general slowdown in Ramadan hours and production halts due to Eid holidays.
- 10MFY22 total industry sales clocked in at 279,329 units (+42%YoY), consisting of 191,235 passenger vehicles (+51%YoY), 36,499 LCVs (+44%YoY) and 4,659 trucks (+56%YoY). The volumes continued to remain strong (although at a declining growth rate), especially passenger vehicles whose numbers have exceeded the previous high of 183k units in 10MFY18. The effect of stimulus provided in FY22 budget continues to persist by looking at the order books despite the reversal through supplementary finance bill.
- Segment-wise, the 1,300cc+ premium segment emerged victorious, posting growth of 34%YoY followed by 1,000cc segment, growing 29%YoY and 800cc segment witnessing growth of 21%YoY. On the flipside, volumes shrank on MoM basis in which the 800cc segment contracted 47%MoM. 1,000cc segment remained in the limelight owing to a growth of 48%MoM while 1,300cc+ segment remained flat. In 10MFY22, the volumes of 800cc/1,000cc/1,300cc+ segments have depicted a growth of 70/61/35%YoY.
- Amongst major OEMs, INDU posted highest sales of 5,775, declining 18%MoM owing to the high-base effect after posting highest ever monthly sales in previous month. Similarly, PSMC/HCAR posted sales of 12,639 units (-16%MoM)/2,629 units (-28%MoM). On YoY basis, INDU/PSMC/HCAR have posted growth of 8/47/15%YoY.
- On the macro perspective, we believe that the euphoria (post budgetary measures) has finally come to an end. The price decreases during Jul’21 had initiated a buying spree before the prices were reverted which had filled the order books. With prices increasing 20-30%YoY across the board, we expect the industry to slowdown going forward. Additionally, the 250bps hike by SBP will discourage the growth in auto loans.
AKD Research
Indus Motor is engaged in the assembly, progressive manufacture, import and marketing of Toyota motor vehicles. Co. is also the sole distributor of Toyota and Daihatsu vehicles in Pakistan.
Pak Suzuki Motor is engaged in assembling, progressive manufacturing and marketing of Suzuki cars, pickups, vans, and 4X4 vehicles. Co.'s product models include Baleno, Margalla, Mehran, Kyber, Ravi Pickup, Bolan Van and Potohar Jeep.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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