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Pakistan Automobiles: Apr 2018, PSMC and ATLH Marked New History - In-line with expectation

• Pakistan auto sales showed buoyant performance during April 2018 and recorded growth of 39% YoY to 25,567 units. Stellar performance in car segment  is driven by record sales of Pak Suzuki Motors (PSMC) with total sales volume of 14,781 units (+61% YoY).
• PSMC sales surged by 61% YoY as sales of Ravi and Wagon R doubled during the month. While, other brands like Bolan, Swift and Cultus has shown impressive growth of 89%, 77% and 58% YoY, respectively. Moreover, as per our channel checks, Pak Suzuki delivered its March commitments in April, resulting into stronger April sales.
• Similarly, Indus recorded its second highest sales of 6,183 units, up by 10% YoY largely driven by fortuner +147% YoY. While Hilux and corolla sales surged by 6% and 4%, respectively.
• Honda Cars (HCAR) sales jumped by 31% YoY to 4,603 units, where robust growth came from City due to its rising popularity in upper middle class.
• Cumulatively, in 10MFY18, car sales depicted 23% growth rate, where both PSMC and HCAR crossed their last year’s sales.
• Tractor sales continued its positive trajectory and portrayed 27% YoY growth owing to continuation of lower sales tax of 5% on tractors. Among companies, AGTL outperformed in tractors segment with growth of 35%, while Millat sales went up by 24% YoY.
• In Trucks and Buses segment, Master outperformed  industry growth by 63ppts (82% vs. industry growth of 19%). Moreover, HINO and ISUZU shown  growth of 2%  and 25% respectively on back of higher construction activities driven by China Pak Economic Corridor (CPEC), Public Sector Development Program (PSDP) and Private sector growth.
• In Motor Bike segment, Atlas Honda (ATLH) touched a new milestone in terms of both production and sales at 116k and 115k units respectively. Overall bike and three wheeler segment went up by 27% YoY.