Published On: Thu, Jan 16th, 2014

Car Sales up by 6%

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Automobile (Pakistan News) car sales

Automobile (Pakistan News)

-As per the recently released numbers, locally manufactured car sales (including LCVs and Jeeps) stood at 61,252 units in 1HFY14 against 57,540 units, up  6%YoY.

-The growth stemmed from 20% growth in HCAR volume while PSMC and INDU depicted a subdued growth of a mere 3%.

-HCAR benefited from higher sales of its ‘City’ variant (up 26% YoY) while ‘Civic’ has also shown a respectable growth of 14%. The company’s market share expanded by 2pps to 16% in 1HFY14.

-PSMC sales have grown by 3% during 1HFY14 to 35.4k units where higher growth of Ravi (21% YoY), Bolan (18% YoY) and Cultus (17% YoY) was diluted by sales contraction in Liana, Swift and Mehran.

-INDU’s flagship ‘Corolla’ witness an increase of 4%YoY. Company’s other product Hilux has shown a subpar performance with sales declining by 6%.

-We believe that the availability of cheaper, imported substitutes are adversely affecting the domestic volumes.

-In Dec’13, car sales stood at 8,868 units, up 5% from as compared to the same month last year, -The continuous show of low numbers by the auto industry has attached a lower side bias to our sales forecast for FY14. However, major trigger for the sector resides in the new auto policy with talks amongst the various stakeholders underway.

1HFY14: Local car sales

5MFY14

YoY

Nov’13

YoY

MoM

Industry

61,252

6%

8,868

5%

-8%

PSMC

35,492

3%

5,981

0%

0%

INDU

15,181

3%

1,983

26%

-9%

HCAR

9,989

20%

655

-24%

-50%

Source: PAMA,  Shajar Research

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