Report

Intermarket Pulse: Pakistan Autos: Record high sales despite price increases

  • Pakistan’s auto industry registered sales of 25,567 units in Apr’18, up 39%YoY, taking 10MFY18 sales to 218,301 units, up 23%YoY. Despite 3-10% price increases since Jan’18, the industry posted highest monthly sales ever.
  • Tractor sales reached 7,979 units in Apr’18, up 27%YoY, as Kharif (summer) sowing season has started. This is impressive, given that concerns over water availability for Kharif season have amplified over the past few months.
  • According to PAMA, the budgetary measure to ban new vehicle sales to non-filers can reduce car sales by 30% due to low filer base in Pakistan. While the budget is yet to be passed in the national assembly, this is a major risk for all the three OEMs.
Underlyings
AL-Ghazi Tractors Ltd.

Al-Ghazi Tractors Limited is engaged in the manufacture and sale of agricultural tractors, generators, implements and spare parts, and providing irrigation solutions for agriculture. The Company offers tractors in various models, including NH - 480, NH - GHAZI, NH - 640, NH 55-56, NH 70-56 4WD, NH DABUNG 85 and NH 60-56. The Company offers various implements, such as cultivator, disc harrow, rotavator cum bed former, articulated aerial platform, potato digger, boom sprayer, mold board plough, tractor mounted back hoe, road sweeper, front-end loader, lawn mover, maize sheller, disc plough, front mounted fork lifter, tractor operated flour mill, safari cabin and hydraulic tipping trolley. It also offers diesel generators. Its Model 640 is a 75 horsepower (hp), four cylinder quality tractor. Its Model Ghazi is a 65 hp, three cylinder quality tractor. Its Model NH 55-56 is a 55 hp, three cylinder quality tractor. Its Model NH 70-56 4WD is a 85 hp, four cylinder quality tractor.

Honda Atlas Cars (Pakistan) Ltd.

Honda Atlas Cars (Pakistan) Limited. Honda Atlas Cars (Pakistan) Limited is engaged in assembling and progressive manufacturing and sale of Honda vehicles and spare parts. The Company's segments include Manufacturing and Trading. The Company's Manufacturing segment relates to the sale of locally manufactured cars and parts. The Trading segment relates to the trading of completely built units (CBUs) and parts. The Company's factory is located at Multan Road, Manga Mandi, Lahore. The Company offers car models, such as Honda Accord, Honda CR-V, Honda CR-Z, Honda HR-V, Honda Civic (over four models), Honda City Aspire (over four models) and Honda City (over four models) in various colors with a range of technology features. The Company's cars are available in colors, including crystal black pearl, bold beige, taffeta white, urban titanium, modern steel metallic, habenaro red, alabaster silver metallic, camelian red pearl and white orchid pearl. The Company is a subsidiary of Honda Motor Co., Ltd., Japan.

Industrial Motor Co.

Indus Motor is engaged in the assembly, progressive manufacture, import and marketing of Toyota motor vehicles. Co. is also the sole distributor of Toyota and Daihatsu vehicles in Pakistan.

Millat Tractors Ltd.

Millat Tractors is engaged in the assembly and manufacture of agricultural and industrial tractors, implements and multi-application equipments including diesel generating sets, forklift trucks, prime movers and other related products. Co. is organized into three business units: the Tractor segment, which deals with assembling and manufacturing of agricultural tractors, implements and multi-application products; the Equipment and Parts segment which is engaged in the business of manufacturing of automotive, agricultural and industrial vehicles parts and components; and the Castings segment, which is engaged in manufacturing of castings for tractors and automotive parts.

Pak Suzuki Motor Co. Ltd.

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.

Provider
Intermarket Securities Limited
Intermarket Securities Limited

​Intermarket Securities Limited (IMS) is a full service corporate brokerage firm based in Karachi, Pakistan. We service both domestic and international clients. IMS was ranked #2 Best Local Brokerage and #3 Best for Overall Country Research for 2016 by AsiaMoney.

Analysts
Ahmed Raza

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