Pakistan Auto_Strong Sept’20 indicates bottoming out of down cycle, (AKD Daily, Oct 13, 2020)
- Monthly automobile industry sales data indicates a possible bottoming of the industry’s longest down cycle to date (23 months of flat or negative YoY sales), with a total of 11,808 units being sold (+16%MoM/-2%YoY) of which 9,439 cars (+15%MoM/-14%YoY), 2,021 LCVs & Pickups (+14%MoM/2.3xYoY) and 315 Trucks (+51%MoM/+38%YoY), constituted total offtake.
- In the passenger car segment, total sales consist of 3,764/1,947/3,728 units sold under 1,300CC+/1,000CC/800CC & below segments, moving +24/-9/+24%MoM and +12/+9/-36%YoY with the 1,300CC showing resilience on the back of the Yaris (sales up 42%MoM, best month since launch in June’20)
- Cumulative 9MCY20 total industry sales remain fatigued, at 79,535 units (-49.4%YoY) hindered by passenger car sales decline of 51.0%YoY, while LCVs/Trucks witnessed cumulative sales decline of ~41/40%YoY keeping sales near levels witnessed over the same time span in CY09-10
- Amongst major OEMs, monthly uptick was seen across the board with INDU having a strong month (4,365 units sold, +32%MoM/+2.1xYoY) followed by HCAR (2,710 vehicles sold, +20%MoM/+87%YoY), followed by PSMC (+8%MoM/-20%YoY), with cumulative 9MCY20 sales remained soft (PSMC/INDU/HCAR sales down -56.3/-34.3/-35.8%YoY)
- As incumbents gear up for a spate of new model launches and new entrants vie for market share, in an environment of relative cost stability (PkR holding ground against US$), we remain upbeat on demand growth gaining steam through to 1QCY21.
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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