In the first nine months of the fiscal year 2019 (9MFY19), the auto industry experienced inconsistent steps on the policy front with the initial ban on car purchase for non-filers. This ban was partially withdrawn in January 2019 when the federal government allowed non-filers to buy cars up to 1,300cc. The ban on non-filers was entirely ended in March 2019.
Rupee devaluation, rising interest rates on auto financing and 10% Federal Excise Duty (FED) announced in the second amendment of Finance Supplementary Bill 2019 were key events which fluctuated the overall car pricing. Despite all these inconsistencies in the last nine months, the car sales saw only 0.6% decrease (from 161,371 units in 9MFY18 to 160,359 units in 9MFY19).
According to statistics compiled by Pakistan Automotive Manufacturers Association (PAMA), the country’s passenger cars’ sales spiked by 4.7% in March 2019 (19,897 units) as compared to March 2018 (18,988 units).
SOARING WAGON R DEMAND
Among the car sales in March 2019, Suzuki WagonR demand soared as 2,982 units were sold as compared to 2,419 units in February 2019 (18.8pc increase). The 9MFY19 sales of Suzuki WagonR were 15.5% more than that of 9MFY18. On the same pattern, Suzuki Cultus had 9% more sales in 9MFY19 and 18% increase in March 2019 when compared to February 2019.
As far as 1300cc and above engine capacity cars are concerned, the sales of Honda Atlas cars (Civic and City) remained almost the same (32,209 units in 9MFY19 and 32,074 in 9MFY18). The company sold 499 more units in March 2019 than February 2019. Although Toyota IMC sales surged with an 11% increase in last nine months with Toyota Corolla (XLi and GLi) being in high demand, a 4.3% decline was seen from Feb to March this year.
All in all, 1,000-1,800cc cars showed good sales despite price hikes, Rupee devaluation, and a brief ban on non-filers. The car sales in 1700cc and above engine capacity are expected to increase once the government ends 10% FED; however, the government is yet to confirm anything officially and it is merely an announcement at the moment.
Due to the FED, the sales of Toyota Fortuner are facing difficulties. Toyota Fortuner went down to 2,009 units in 9MFY19 from 2,741 8MFY18. Similarly, the sales of Toyota Hilux declined from 5,442 units to 4,568 units. The drop in sales of Honda BR-V was calculated to be 46%.
MEHRAN SALES GO DOWN
In the budget cars category (800cc and below engine capacity), car buyers showed less enthusiasm for Suzuki Mehran as its sales saw around 24% decline in 9MFY19. There was a 25% decrease alone from February to March 2019. This is likely to have occurred as Pak Suzuki discontinued the production of Mehran VX and VXR from this year. Suzuki Bolan sales saw 16.8% decrease during the same period.
The sales of motorbikes witnessed 6% decrease in 9MFY19. There was a 5% decline in sales of Atlas Honda motorcycles in March 2019 as compared to February 2019 and 17% decline with respect to March 2018.
The sales of Yamaha and Suzuki improved to 18,193 and 17,873 units during the last nine months from 15,083 and 15,971 units in 9MFY18, respectively.
For all automotive industry related news, stay with PakWheels. Let us know your opinion in the comments section.
Disclaimer: This data is taken from the website of PAMA, and PakWheels will not be responsible for any discrepancy in the given data.