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Pakistan Automobiles: Nov 2018 Auto Sales Down 17% YoY

• Pakistan Auto sales declined steeply by 17% YoY in Nov 2018, contrary to growth in numbers last month. The volumetric decline is much anticipated given 1) deteriorating economy, 2) law barring tax non-filers from purchasing cars and 3) multiple price hikes in the past 12 months. Moreover, sequentially, sales have declined 30% MoM primarily due to high base effect of last month as well as seasonal slowdown. In line with our sluggish auto demand outlook, during 5MFY19, unit sales declined by 4% YoY which is first such decline after a period of five years (normalizing for taxi scheme).
• Indus Motors (INDU) was the only company to report YoY growth in volumes, up by 2% YoY in Nov 2018. On a sequential basis, volumes fell by 15% MoM while for 5MFY19, sales are up 7% YoY. Corolla sales increased by 9% YoY while sales of Hilux and Fortuner fell by 46% and 15%, respectively.
• Honda (HCAR) sales fell by 23% YoY and 31% MoM while sales for 5MFY19 rose by 2% YoY. The fall in sales was led by 76% lower BR-V sales while sales of City and Civic units on cumulative basis fell by only 2% YoY.
• Pak Suzuki Motor Company (PSMC) performed the worst with 25% YoY decline in volumetric sales. Decline in sales was led by 44%, 39% and 28% decline in Mehran, Bolan and Ravi variants, respectively while the only variant to record growth was cultus, up by 13% YoY.