Industry sales up 6.5% YoY

Car sales up 8% YoY In 5MFY14: Pakistan Automotive Manufacture Association (PAMA) has released its sales and production data for Nov-13.

According to research analyst Syed Ali Ahmed, total industry sales (including Cars+LCVs+Jeeps) went up 6.5%YoY in 5MFY14, though sales declined 4%MoM.

The 1300cc segment posted 7%YoY growth along with 12%YoY growth in the Pick-ups segment. Production of Hyundai Shehzore was resumed last month and 147 units sold until now. Stats continue to show massive growth of 94% for the jeep segment owing to late launch of Fortuner in FY13.

PSMC, INDU and HCAR showed 4%, 1% and 26%YoY growth respectively attributing 8% growth in PSMC, 16% and 24%MoM decline in INDU and HCAR’s sales respectively.

HCAR’s Civic has shown ever promising results going up 27%YoY while Honda City too supported the luxury segment by posting 25%YoY growth.

PSMC managed to register a meager 4%YoY growth owing to 20% and 23%YoY increase in the sales of both Bolan and Ravi whereas sales of both Liana and Swift declined 36% and 24% respectively.

This industry is prone to the last quarter of every calendar year as consumers prefer to buy cars with New Year’s registration.

Talking to ARY news analyst Syed Ali Ahmed gave his reviews regarding the future progress of this industry, according to the stats auto sales to remain depress in Dec-13

Highly protected auto industry desperately awaits AIDP-II which is expected to announce in Dec-Jan.

Investors are eagerly waiting for the upcoming policy which would determine the future prospects for the sector. Meanwhile, the expected sales to show muted growth in 2QFY14 owing to year end phenomenon as buyers preferred to buy car with New Year registration.

Source: alt-research