Auto sector chokes as sales plunge – Newspaper

KARACHI: All segments of the automotive sector faced a contraction in demand during the first quarter of this fiscal year with a drop in car sales from 39.4 percent to 31,107 units compared to 51,221 units in the same period of the year past.

Similarly, there was a drop of 49.7pc in trucks, 26pc in buses, 31.6pc in tractors, 58pc in jeeps, 48pc in trucks and 19.5pc in two- or three-wheel vehicles.

Frequent price increases by assemblers due to the collapse of the rupee, the imposition of federal excise tax (EDF) at 2.5-7.5pc in various engine powers and the additional customs duty on raw material imports had affected car sales

Car financing was also reduced due to very high interest rates. Rates of motorcycles and other vehicles have also risen several times due to currency devaluation.

However, in September, car sales improved slightly to 10,923 units, from 9,126 units in August, but could not avoid a large slowdown in overall quarterly figures.

WagonR suffered a massive drop of 73pc to 2,168 units, followed by 68pc in Honda Civic / City to 3,926, 58pc decrease in Toyota Corolla to 5,503, 59pc drop in Suzuki Swift to 524.

Similarly, sales of Suzuki Cultus, Mehran, Bolan plummeted by 25pc, 85pc, 71pc to 3,598, 1,249 and 1,106 units, respectively. Meanwhile, Alto660cc sales were 12,943 units.

Truck sales, called trade and business barometer, fell to 874 units, from 1,738. Hinopak, Master and Isuzu sold 365, 121 and 388 units compared to 652, 285 and 801 in the previous quarter.

In August, an official from Ghandhara Industries Ltd (GIL) said his Isuzu brand had remained the best truck seller in fiscal year 19 and that sales were less affected than competitors due to high quality and the best services post-sale. But the 1QQ20 data contradicted the claim as its sales decreased to 368 units, from 801 with 68 units sold in August and September each.

Despite some progress in new infrastructure and highways, bus sales were reduced to 196 units of 267 units in which Hino, Master and Isuzu sold 91, 39 and 66 units compared to 103, 74 and 90 units.

Sales of Toyota Fortuner, Suzuki Ravi, Toyota Hilux and JAC fell to 266, 1,559, 938 and 138 units from 606, 3,614, 1,617 and 205. There was a 59pc drop in sales of Honda BR-V to reach 528 units.

In tractors, Fiat saw its sales increase by 24 percent to 4,470 compared to a 52 percent decrease in Massey Ferguson to 4,829 units.

In two- and three-wheelers, sales of Honda and Suzuki accounted for declines of 12 and 11 units to 235,116 and 5,018, while Yamaha recorded a decrease of only 1 unit to 6,212 units.

Units sold by United Auto Motorcycle and Road Prince Motorcycle decreased 26{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} and 35{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} to 81,012 and 29,399, while Ravi units decreased 54{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} to 3,497.

Sales of three-wheelers from Saazgar and United were reduced to 2,403 and 1,401 units of 4,440 and 3,176, while Road Prince rose to 1,628 of 1,588 units.

Posted on Dawn, October 12, 2019

Source: https://www.dawn.com/news/1510430/auto-sector-chokes-as-sales-plunge

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