Even the increased influx of used imports, local auto makers saw the sales leaped to 151,134 units from 118,102 for the fiscal year 2014-15. The imported cars on the other hand were between 25,000 to 30,000 units a year.
Toyota Indus enjoyed the cruise to the finish line with the sales of their newly launched Toyota Corolla. Last year, Toyota Indus sold 29,087 units and this year 51,398 units were sold. This not only helped Toyota but also had a positive impact on the overall sales figures of the Pakistani auto market.
Indus Motor Company, makers of Toyota in Pakistan, saw the highest ever sales since the birth of the company. Toyota Indus sold 56,943 units in FY15. This means the staggering growth of more than 65% year on year growth.
State Bank of Pakistan reduced the interest rates from previous 10% to 7% in last year. This then helped the cars sales, estimated 10% increase, being done by bank financing.
Although Suzuki Swift had dismal sales figures, Wagon R emerged as the dark horse with almost tripled sales compared to last year (5,246 units in current fiscal year than 1,621 units of last year). Suzuki Swift suffered the loss of more than 30% in sales figures.
Honda however didn’t have the rosiest of year, mainly due to the launch of new Toyota Corolla. Its sales dropped from 9,933 to 7,806 units. Honda City saw increased in units sold from the last year though.
Overall, the local auto makers saw the increase of very positive 31% increase in FY15 than last year just 1% increase. The compound annual growth rate stood at 5.3% for the last five years (FY11-15). And for FY16, the growth in auto sector is expected to be at 13%.
This is no doubt a very positive result, for not only the auto industry but also for the economy of Pakistan as a whole. Despite the heavy taxation and high prices of the vehicles, the sector has seen incredible growth. Let us see how long this trend of continues and how will the local auto assemblers react to used imported car market.