Thursday, November 13, 2008
By our correspondent
KARACHI: Pakistan Automotive Manufacturers Association (PAMA) has released car sales numbers for the month of October 2008. The data unveiled 21 per cent decline in passenger car sales at 9,599 units as compared to 12,157 units during the same month last year. Cumulatively, for July-October 2008 period, car sales dropped by 44 per cent to 28,665 units.
However, month-to-month car sales increased by 22 per cent to 9,599 units on the back of healthy rise of 73 per cent and 10 per cent in 1300cc and 1000cc segment, respectively. Whereas, economy class segment 800cc posted a decline of 13 per cent.
During October 2008, Indus Motors (INDU) unit sales increased by 8 per cent at 3,509 units as against 3,246 units recorded for the same month last year. Launch of 10th generation Corolla model triggered the sales, which depicted an increase of 15 per cent at 2,905 units.
Honda Atlas Cars (HCAR) cars sales also registered an increase of 11 per cent on the back of 30 per cent higher unit sales of Civic.
It is pertinent to mention that Civic prices remained relatively lower than comparable variant of Corolla Altis (1.8L). Whereas, unit sales of Pak Suzuki Motors (PSMC) and Dewan Farooque Motors dropped 37 per cent and 93 per cent at 4,741 units and 11 units, respectively.
On aggregate basis, during the four months of financial year 2008-009 (4MFY09) all assemblers witnessed decline in car sales due to worsening demand condition. PMSC, INDU, HCAR and Dewan Motors registered a respective drop of 45 per cent, 49 per cent, 12 per cent and 92 per cent.
Kamran Rehmani analyst at First Capital Research says that among 1300cc-above car segment, Indus Motor regained its market share to 67 per cent during Oct 2008 - up 16pps versus 51 per cent recorded in the preceding month. Increase in market share is attributable to the full-fledged production commencement of Corolla’s variant Corolla Xli (1.3L) during the month, which contributes more than 70 per cent of Corolla’s cumulative monthly sales. However, jump in market share of Corolla comes at the cost of abrasion in market share of HCAR and PSMC showing a respective erosion of 14.3per centage points (pps) and 1.4pps. On contrary, in 800cc segment Indus per cent with an equivalent gain in PSMC’s.
He added that besides, increasing fuel prices, higher taxes, higher mark-up rates and other economic woes, lukewarm car sales is also attributable to rise in car prices which has left consumers with a significantly lower affordability. Increasing Japanese Yen rate has put resolute pressure on gross margins of local auto assemblers, thereby, urging them to pass-on the cost impact to consumers.