Pakistan Autos: Slow down extends to PC Segment
- May'19 total automotive industry sales of 28,342 units (-8%MoM/-19%YoY) limiting 11MFY19 total industry offtake to 229,436 units (-8%YoY). Major constituents of total industry sales moved -15%/-31%/-54%YoY for Passenger Cars/LCV & Pick-ups/Trucks for the month, with 12M running total Car sales slowed to 192.8K units, levels last seen during March'18, indicating an early stage down cycle.
- Cumulative 11MFY19 total industry sales dip was a factor of LCV & Pickups/Trucks/Passenger car segments weakening -23%/-36%/-8%YoY. In the passenger car (PC) segment, 11MFY19 numbers 1000CC/1300cc plus segment posted +13%/+2%YoY growth, meanwhile the 800cc and below segment experienced the brunt of slowing demand, falling 25%YoY.
- OEM-wise performance was largely muted with PSMC/INDU/HCAR recording monthly sales movements of -7%/-17%/+4%MoM and -13%/-20%/-31%YoY taking their cumulative 11MFY19 offtakes to vary by -10%/+3%/-13%YoY with only 3 of 11 industry variants (counting Civic + City as one) experiencing cumulative sales growth (Cultus/Wagon R/Corolla sales grew +14/+13/+9%YoY).
- Re-iterating the weaknesses imposed on demand from a weak macro backdrop, we flag the persistence of depreciative GoP policy actions (starting with non-filer ban from June'18), the recently extended progressive FED levy (extending levies on new vehicle sales already in place), as continuing to dampen sales outlook for the sector over the medium term.
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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