Pakistan Autos - A walk in challenging times, (AKD Daily, Mar 20, 2023)
A walk in challenging times
The restrictions on imports have adversely impacted auto assemblers, leading to delays
in opening of LCs along with the clearance of CKD kits from ports, due to which auto assemblers
are facing frequent plant shutdowns.
In CY23 auto assemblers have hiked their prices for the 4th time culminating to an increase
of more than ~35% on average. Hikes in the policy rate and hefty PkR devaluation
have brought consumer affordability into question. We expect for demand to be reduced
by more than 50% by the end of FY23.
Restrictions on LCs have hit automobile assemblers hard. Since SBP’s SRO released in
May’22, the situation has continued to deteriorate significantly and is seen from 8MFY23
decline in production of passenger cars down by 43%YoY.
With a blend of supply and demand shocks, it is quite difficult for OEM’s to perform well
going forward. We believe in the absence of any prompt action on the ease of restrictions,
the volume can end up decreasing by north of ~50%YoY in FY23.
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.