Pakistan Autos_Change is most definitely in the air, (AKD Daily, Mar 31, 2021)
AKD Daily
Pakistan Autos: Change is most definitely in the air
- Local and foreign automakers have lined-up to avail benefits offered by ADP-II before it’s expiry in Jun’21, having already attracted foreign investment of over $1bn till date. Simultaneously, all eyes are set on the next ADP that is expected to incentivize localization.
- The core affluence market for premium sedans faces competition from Hyundai Elantra and expected KIA Cerato as well as from compact SUVs including KIA Sportage, Hyundai Tuscon, DFSK Glory 580 Pro, Proton X70, MG ZS and MG HS (currently only CBU).
- The small segment, previously dominated by PSMC, has also witnessed competitive pressures, with variants offering wider options such as United Bravo, United Alpha, Prince Pearl and KIA Picanto.
- Despite growing competition, an ever strong dealer network entrenched across the country as well as commanding presence especially in the rural market makes for a continued case for INDU where recent PkR appreciation and possible introduction of new Corolla by FY23 makes for further upsides.
- Given average monthly volumes of PSMC rising by ~2,000 units in last 2 months and expected launch of new Swift, a short term upside in the stock cannot be ruled out.
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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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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