Pakistan Auto_Yaris inoculates industry against demand downslide, (AKD Daily, Nov 12, 2020)
AKD Daily
Pakistan Auto: Yaris inoculates industry against demand downslide
- PAMA reported Oct’20 total automotive industry sales fell -4%MoM despite landing firm over last year (+1%YoY, after 23 consecutive months of negative or no YoY growth), amounting to 11,384 units, where constituents moved -5%/-2%/0%/+36%/+5%MoM for Passenger Cars/LCVs/Trucks/Buses/Tractors, while LCV/Tractors/Trucks recorded rise of +53%/+33%/+57%YoY
- Cumulative 10MCY20 sales decline of 45.9%YoY was an offshoot of Passenger Car/LCVs/Trucks slipping 48.0%/33.4%/35.4%YoY, while over the same period car segments 800cc+/1000CC/1300CC+ sales moved -49.3/-55.9/-42.5%YoY, as demand suffered from hefty price hikes following through to CY20 exasperated by the COVID-19 pandemic
- Amongst major OEMs, INDU/HCAR had a strong month with sales up 120/61%YoY as they benefit from the 1,300CC+ segment exhibiting greater resilience, with INDU inoculating itself from dull demand scenario with the Yaris launch, while PSMC continued to have a tepid month (-7%MoM/-13%YoY) with Alto and Ravi sales receding further on annual basis
- Considering the absence of KIA sales figures (not a member of PAMA) we have clearly crossed the low water mark for industry sales as growth is being underreported on PAMA numbers alone. In the backdrop of heightened industry competition and demand model launch timeline for new entrants, we remain upbeat on INDU’s ability to weather headwinds and deliver on smooth uptick in profitability.
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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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