Pakistan Autos: Struggling through the slow and steady,(AKD Daily, Oct 14, 2019)
- Monthly automobile industry sales data is out, with a total of 12,083 units being sold (+15%MoM/-40%YoY) of which 10,923 cars (+20%MoM/-36%YoY), 896 LCVs (-18%MoM/-64%YoY) and 228 Trucks (-5%MoM/-58%YoY), with an additional 3,761 tractors (+48%MoM/-35%YoY) constituting total sales
- In the passenger car segment, total sales of 10,923, consist of 5,793, 800CC & below segment (+38%MoM/+64%YoY, with Alto sales catalyzing growth), 1,781 1,000CC segment (-8%MoM/-60%YoY) and 3,349 1300CC & above segment sales (+12%MoM/-63%YoY) respectively
- Cumulative 9MCY19 total industry sales of 157,216 units (-21.6%YoY) hindered by passenger car sales decline of 19.2%YoY, where HCAR (24,410 vehicles sold, down 39.2%YoY undergoing its worst cumulative sales decline), PSMC (88,307 vehicles down 15.4%YoY), INDU (39,475 units sold down 18.4%YoY) are approaching historic lows
- Underpinned by wider industry headwinds, the flat-lining of sales growth in the premium 1,300CC+ segment, coupled with significant price hikes (~18-29% CYTD for Corolla/Civic) has led to ‘sticker shock’ amongst customers.
- Amidst wider GoP policy actions to increase documentation and grow the tax base, consumer trepidation is likely to keep sales subdued, where the ongoing 4QCY19 sales are likely to remain lackluster.
AKD Research
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.
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