KARACHI: The sales of automobiles witnessed a steep decline of 31 percent in the August because of weakening countrywide demand as compared with the previous month of July.
Pakistan Automotive Manufacturers Association (PAMA) has released latest figures of auto sales for August 2011. The total auto sales (cars, LCVs, Pickups and Jeeps) were recorded at 12,117 units in August.
On yearly basis, the August sales posted growth of 9.0 percent mainly owing to lower sales the previous year.
In two months of fiscal year 2011-12 sales stood at 29,680 units – up 35 percent on yearly basis. On the other hand, production was lower by 3.0 percent during the same period.
In this period, Pak Suzuki Motors Company (PSMC) sales surged by 67 percent on yearly basis as it sold 18,301 units. Almost all variants of PSMC entered recovery mode as Swift, Liana, Cultus, Alto, Bolan and Ravi managed to post growth of 203 percent on yearly basis to 1,274 units, 149 percent to 127 units, 52 percent to 2,672 units, 46 percent to 2,581 units, 50 percent to 2,775 units and 75 percent to 3,357 units, respectively.
On the other hand, Indus Motors posted nominal growth of 6.0 percent on yearly basis and decline of 9.0 percent on monthly basis in its sales. It was followed by Honda Car’s growth of 22 percent on yearly basis, while PSMC sales declined by 3.0 percent on monthly basis.
Improved growth in auto sales continued to suggest increased demand from farmers’ community as bulk of the sales emanated from Punjab region. Increased remittance is another factor currently providing impetus for growth in auto sales, analysts said.
With heavy rains pouring down, especially in the rural parts of Sindh, which are also damaging the crops and livestock associated with such rains, rural income in rain-affected areas is expected to be impacted adversely, which would ultimately hit auto sales as well, typically during September 11.
However, a rebound from thereafter could be due owing to expected decline in inflation and interest rates. But by and large, depreciation of currency would continue to remain a bigger challenge for the sector and would thereby keep auto prices downward.