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Pakistan Automobiles: Apr 2019 Sales Down 24% YoY

 

• Pakistan Auto sales are down by 24% YoY in Apr 2019. The major contributor to this decline is HCAR, down 38% YoY. Compared to last month Auto Sales are down by 15% where HCAR remain the major decliner having its sales reduced by 26% MoM. Overall the main reason of this decline in Auto Sales has been continuous price hike by all companies which has started to show its effect on sales numbers along with economic slowdown in the country. In 10MFY19 as compared to same period last year, the Auto Sales are down by 4% with PSMC contributing the most to the decline due to frequent changes in Filer & non filer regulations. The major contributor to the auto sales over the years has been auto financing which is currently slowing down due to higher interest rate, up +475bps to 10.75% since Jan 2018 & is expected to increase by further 75-100bps in near future.  
• Indus Motors (INDU) reported YoY decline by 7% in Apr 2019, but still remains strong amongst its peers as the strong customer base continues to support sales. Fortuner sales declined by 63% YoY, while Corolla continued its growth trend with sales up 6% YoY. On the other hand Hilux sales fell 60% YoY.
• Pak Suzuki (PSMC) reported YoY decline in sales, down by 27% YoY in Apr 2019. Sales decline was led by Mehran down 41% YoY as its production has now been ceased. Bolan, Swift, Wagon-R and Ravi variants down by 33%, 15%, 13% and 15% YoY, respectively. Cultus was the only PSMC variant to record growth YoY (up 5% YoY).
• Honda cars (HCAR) sales fell 38% YoY, the highest decline recorded among its peers. This coincides with one of the worst YoY decline in sales of city and civic variants, which cumulatively fell by 43% YoY. Simultaneously BR-V sales fell 6% YoY. To, note, BR-V sales have fallen YoY for the 12 consecutive months as the variant introduced in Apr 2017 has struggled to capture any significant market share in SUV segment.