KARACHI, Oct 21: Auto makers have unveiled their production plans for vendors for the coming six to nine months based on the current economic and security situations.
Vendors said that a leading car maker, having over 50 per cent market share and domination in 800 to 1,000cc cars, has disclosed “a very realistic production plan” instead of an optimistic one up to March 2010 based on the current situation in the country. Another assembler of 800 to above 1,300cc cars is hoping to sell a good number of cars in the current fiscal year.
However, increase in car prices by Indus Motor Company (IMC) by Rs30,000 and Honda Atlas cars by Rs25,500-39,000 show that the assemblers are fully cashing the situation of rising demand. Another leading assembler is flexing his muscle to enhance the rates. Car prices are being increased owing to appreciation of yen against the rupee.
A vendor, who held a meeting with the officials of Pak Suzuki Motor Company Limited (PSMCL) on Tuesday, said that the company produced 90,373 cars in 2008 but adopted a cautious approach by planning to roll out 51,628 cars, vans and pickups in 2009. From Jan to Sept, 2009, the company had already assembled 32,685 units.
The vendor said from Oct to Dec, 2009, PSMCL plans to produce 6,050 Mehran, 825 Bolan, 3,370 pickups, 3,070 Cultus, 3,425 Alto and 285 units of Liana.
Pak Suzuki also plans to introduce a new 1,300cc car this year and is starting its trial production from November this year by initially producing 96 units and 192 units in December. From Jan to March next year, it is planning to produce 1,500 cars.
The vendor said that from Jan to March 2010, Pak Suzuki has given a slight low production plan if compared with Oct to Dec, 2009. He added that the company was targeting to assemble 4,700 Mehran, 2,800 Bolan, 3,200 pickups, 3,200 Cultus, 350 Liana and 2,400 Alto.
He said that the IMC plans to produce over 40,000 Toyota cars only during July-June 2009-10. It has informed the vendors for producing over 3,500 units in October as against an average 3,000 cars per month being produced since April to Sept, 2009 on renewed buyers’ confidence.
A sizable number of Corolla cars were also sold to the Police and other government departments.
According to figures of Pakistan Automotive Manufacturers Association (PAMA), a total of 24,181 cars were sold in July-Sept, 2009 as compared to 19,066 units in the same period of 2008.
Chief Executive of Top Line Securities Mohammad Sohail thinks that if security and economic situation improve the car sales will surely post a growth of 20-30 per cent in this fiscal year. In case security situation deteriorates the growth may range between 1015 per cent.
Consumers’ passion for new cars is evident from the premium, which is being charged on many models as most of the cars are being delivered with a time lag and some customers seem to be in hurry to have new cars at any cost, he added.