Car sales increased 11 percent last fiscal year
19 October, 2012
ISLAMABAD: The automobile sector offered 431 cars an average every day in fiscal year 2012, showing an increase of 11 percent over the previous year, but business is expected to slowdown during the current fiscal year.
Overall sales stood at a four-year high of 157,325 units during the year under review as compared to the production of 127,944 units during the fiscal year 2011, official sources revealed.
The year's first boost came in the budget when government removed special excise duty of 2.5 percent on imported and manufactured vehicles coupled with reduction of general sales tax to 16 percent from 17 percent, according to Engineering Development Board (EDB) document.
The second turbo charger was the yellow cab scheme offered by the Punjab government, under which the provincial government aimed to deliver 7,500 cabs to successful applicants during July to December 2011.
Details show Toyota Corolla kept the throne of biggest selling car with 46,207 units sold followed by Suzuki Mehran with 35,131 units.
The year also saw an end to the journey of Daihatsu Coure and Suzuki Alto while Indus Motor Company (IMC) felt the new global mode of Coure was not feasible cost-wise to assemble in Pakistan while Pak Suzuki followed its parent company's decision of pulling the plug on the Alto.
EDB document revealed Pak Suzuki Motor Company was the prime beneficiary of the taxi scheme and witnessed the highest growth of 46 percent on yearly basis.
Mehran and Bolan-the two vehicles used in taxi scheme witnessed an impressive growth of 46 percent and 69 percent respectively.
Swift, the latest addition to the family also gained traction and sold 7,040 units against the preceding fiscal year's 4080 units.
IMC witnessed 6 percent growth led by Toyota Corolla and Hilux. New variants of Corolla launched by the company and introduction of CNG-fitted vehicles acted as a catalyst in this growth.
Diahtsu Cuore's sales plummeted to 3,857 units while the company's plant stopped production for good in May.
Honda Atlas witnessed a year to forget, the document said adding the luxury car assembler sales plummeted due to problems in its supply chain since October because of floods in Thailand from where parts are imported and then locally assembled.
The company's production plant in Lahore was shut for three months straight during the year.
The company's high-end variant Civic sales plummeted to 4,977 units compared with 6,365 while City sales fell to 7,142 units against last year's 9,121 units.
Overall strong growth was seen in volumetric sales and improved margins on account of stable rupee against the Japanese yen, which is expected to bode well for the sector's profitability.
According to the data, business is expected to slowdown in the current fiscal year, amid lower allocation to the cab scheme this year and stiff competition form imports.
All these three companies are also going for a price hike to start the financial year. Suzuki has increased price by an average of Rs 35,000 from June 12, 2012 while IMC raised prices by an average of Rs 60,000 on June 26, 2012 on account of conversion to Euro II Compliance and steep depreciation of the rupee.