Published On: Thu, Oct 12th, 2017

Honda Atlas Growth: Automobile Sector Continues to Expand

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Honda Atlas GrowthHonda Atlas growth has been exceptional and carries on outperforming peers with sales increasing to 24% per year in September. The success of Honda Atlas growth can be given to accomplishment of the new models of Civic and BR-V.

According to monthly forecasts, the Honda Atlas growth declined a bit as sales lagged by 27%. The reason being Honda’s plant was shut down for a longer period during Eid and Muharram holidays. In the first quarter of fiscal year, Honda’s sales grew 56% to 12,606 units.

Honda Atlas growth has been sharp compared to most of the competitors. Honda is providing good services and coming up with decent shapes. These factors also contribute to Honda Atlas growth.

Competitors

 

The sales of the automobiles which are locally assembled grew 17% with 18,798 units as compared to 16,060 units in 2016.

The sales of Pak Suzuki grew 22% per year. Cultus, WagonR, and Mehran all showed strong growth. The total sales of all three in the first quarter was 32, 777, improving to 30% growth per year.

Indus Motor, the creators of Toyota Corolla, is far behind  with only a 4% growth per year.

The sales of tractors are growing and showing a good trajectory as it shows 74% growth rate per year in September 2017.

The increase in sales can be contributed to lower General Sales Tax (GST) on purchase of tractor. There are other factors also like fertilizer cash subsidy and Rs 2 billion subsidies for farmers. These programs are supported in Sindh.

The sales of trucks and buses of Pakistan Automotive Manufacturers Association (PAMA) member companies in September 2017 continue to be strong, growing at 37% per year.

The data released by PAMA shows that cumulative automobile industry sales has shown a growth of 27%. It is predicted that the growth of automobile industry will continue because of the China-Pakistan Economic Corridor (CPEC).

CPEC plans to enhance the infrastructure of Pakistan which will greatly benefit the economic growth of Pakistan. It already has shown a positive impact evident in the growth of automobile sector.

About the Author

- Junaid Ashraf has a Master of Philosophy degree in government and public policy. He has international publications through Taylor & Francis, a leading British publishing body. He regularly write columns for newspapers. His interests include international political economy, geopolitics and good governance. He writes for Asia Times.