Pakistan Autos - Inventory crisis worsens, (AKD Daily, Mar 15, 2023)
AKD Daily
Pakistan Autos - Inventory crisis worsens
- Total industry sales for Feb’23 clocked in at 9,749 vehicles (-64%YoY/-34%MoM), consisting of 3,642 passenger cars (-80%YoY/-40%MoM), 2,120 LCVs and pickups (-41%YoY/-56%MoM), and 521 trucks (4%YoY/+31%MoM). The sequential drop in vehicle sales can be attributed to supply chain constraints with the industry witnessing frequent plant shutdowns on the back of supply issues.
- Segment-wise, 1000cc emerged as the least favorite segment during the month with overall sales dropping by 95%YoY while also contracting 86%MoM. The 800cc & below segment remained flat on a MoM basis but declined by 92%YoY, while the 1,300cc & above segment contracted 56%YoY and 32%MoM. In 8MFY23, the volume of the 800/1,000/1,300cc+ segment depicted a decline of 39%/68%/44%YoY.
- Amongst the major OEMs, PSMC/INDU/HCAR posted sales of 978/1,803/1,636 units declining by 92%/61%/40%YoY. On a MoM basis, PSMC witnessed a massive decline of 67% followed by INDU posting a decline of 49% while HCAR also posted a decline of 39%MoM. The restriction on the opening of LCs for the import of CKD kits resulting in a shortage of raw material led PSMC/INDU/HCAR to suffer decline in volumes.
- Tractor sales remained flat on a MoM basis while posting a decline of 26%YoY to clock in at 3,330 units in the month. Moreover, we have seen a rise in sales of MTL up by 18%MoM whereas on the flipside AGTL witnessed a decline of 39%MoM to post sales of 2,602 and 728 units, respectively.
AKD Research
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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