Analysts said that once again car sales during the month kept its momentum as 4 percent on MoM basis decline was on account of less days in a month compared to January and added that if we assumed normalized working days then car sales improved by 6.5 per cent MoM, while posting tremendous growth on yearly basis.
In the 1300cc and above category, sales displayed a meagre drop of 3 per cent MoM/4 per cent YoY to 8,413 amid 13 per cent YoY decline in sales of Toyota Corolla, which came on the back of a change in company's focus towards high end cars (Hilux). In the below 1,000cc category, Mehran sales registered an increase of 30 per cent YoY and 1 per cent MoM to 4,360 units. On monthly basis, Hilux, BR-V, Cultus and Mehran sales managed to remain positive and posted growth of 32pc, 20pc, 5pc and 1pc MoM, respectively.
Tractors sales increased by 10 per cent MoM and 14 per cent YoY to 6,454 units. During the month, AGTL sales witnessed growth of 40 per cent YoY/7 per cent MoM to 2,910 units while MTL sales fell down by 1 per cent YoY and up by 13 per cent MoM to 3,509 units.
According to Topline Securities, Pakistan, the change in import procedure, demand from online ride hailing services and availability of auto finance at lower rates have contributed to strong demand in outgoing month. Cumulatively, industry sales during 8MFY18 exhibited 23 per cent YoY growth to 170,354 units.
Pak Suzuki Motor Co. (PSMC) continues to be major beneficiary as majority of used car imports fall under lower engine capacity segment. PSMC has exhibited robust growth where sales rocketed 25 per cent YoY in February 2018 as price conscious models Mehran (+30 per cent YoY), WagonR (+27 per cent), & Cultus (+23 per cent) all exhibited strong sales growth. 8MFY18 sales were up 30 per cent YoY for PSMC to 96,062 units.
Honda's (HCAR) sales clocked-in at 4,501 units, up 20 per cent YoY (+3 per cent MoM) due to strong demand. 8MFY18 sales grew 38 per cent YoY to 33,669 units due to success of recently revamped City and rebound in sales of BRV up 20 per cent MoM.
Toyota's Indus Motors lagged behind peers with decrease of -8/-5 per cent YoY/MoM as it continues to face capacity constraints, though 8MFY18 unit sales are up 2 per cent YoY. Tractor sales continue to exhibit upward trajectory with sales growing by 14 per cent YoY in February 2018. Al-Ghazi Tractors (AGTL) outperformed exhibiting 40 per cent YoY growth. During 8MFY18 tractor sales reached 44,627 units up 40 per cent YoY.
Truck & Bus sales in February 2018 remained muted, growing by 6 per cent YoY, while during 8MFY18 sales rose 15 per cent YoY. Motorcycle and 3-wheeler sales for February 2018 have grown by 18 per cent YoY, due to rising disposable income of lower middle class, 8MFY18 sales are up 19 per cent YoY.