Pakistan Autos_ Sales hit a dead stop , (AKD Daily, May 13, 2020)
- Unprecedented, harsh and clearly, one for the history books, reported auto numbers for the outgoing April’20 hit a complete halt, with no sales recorded for PC segment, and major OEMs reporting nil sales as dealerships, plants and product supply chains came to a stop due to COVID-19 lockdown measures imposed across the nation
- Already on an uneasy footing, April’20 marks the point where 18 consecutive months of flat or declining YoY offtake came to a stop, showcased in weak cumulative 10MFY20 (total industry sales down 52%YoY – levels last seen during FY15) with the core Passenger Car (PC) segment falling drastically (down 52%YoY – largest period decline ever)
- Segment-wise sales split for 800CC+/1,000CC/1,300CC+ for 10MFY20 stood at 40/20/40% vs. long term 10yr average compositions of 48/18/34% marking significant thinning of 1,300CC+ demand against cost conscious, new model driven demand for 800CC+ vehicles.
- Pre-COVID’19, the launch of Yaris variants (1300-1500CCs) was expected to re-invigorate premium PC segment demand, allowing INDU to ride the wave of recovery, where recent uncertainty has clouded outlook considerably.
- That said, catalysts for supporting any recovery in demand are active (low rates, low inflation, lukewarm entry for new entrants). Unfortunately, over the short term, these are unlikely to hold significant weight, where the lack of clarity on COVID-19 health outcomes and repercussion on aggregate spending, likely keeping a lid on sector performance.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.