Pakistan Local cars sales drop by 30% in first half of FY13

 The local automobile companies’ sales continued to show dismal situation as their various range of vehicles declined sharply to 57,540 units in first half of fiscal year 2012-13, down 29.78 percent as compared to 81,944 units during the same period last fiscal year. 

The plunge in sales is being reported on account of high imports of used imported cars prior to restriction on imports, termination of small cars brands such as Alto and Coure and absence of taxi scheme.

Local dealers said that the demand of local imported cars is likely to pick up in the coming months due to fresh buying in the seasonal sales on the occasion of New Year. The sales are unlikely to register stable growth as retail markets are flooded with imported used cars of 22,000 units till December.

On the other hand local cars sales including LCVs, vans and jeeps have been facing tough competition due to imported cars, low demand and absence of any exclusive scheme by the government.

The production and sales of automobile companies were seen at an all time low in the last couple of years however analysts are optimistic that restriction of used imported cars from five years to three may regenerate gradually the demand of local brands in the local market. 

On monthly basis, locally manufactured car sales remained on the downhill to 8,448 units in December 2012, 8.0 percent down as compared to 9,154 units in November 2012 while the units are 25 percent down as compared to 11,217 in the same month last year

Among individual companies, Pak Suzuki sales declined by 32 percent to 34,324 units during first half of FY 2012-13 as compared to 50,718 units last year. However, on monthly basis, Pak Suzuki sales picked up to 5,987 units by 7.0 percent, as compared to 5,584 units November 2012 on account of increased sales of cargo vehicles ‘Bolan’ and ‘Ravi’.

Indus Motors sales came down by 39 percent to 14,699 units during first half of FY 2012-13 as compared to 24,066 units in first half of 2011-12. Decline in sales is primarily contributed by 38 percent decline in ‘Corolla’ sales to 12,429 units. On monthly basis, Indus Motors sales declined to 1,571 units in December 2012, 26 percent decrease as compared to 2,125 units in November 2012 and 50 percent decrease as compared to 3,134 units in November 2011.