Car sales declines by 3%YoY in November – Alfalah Securities Limited

Karachi, December 13, 2012 (PPI-OT): Car sales including LCVs, vans and jeeps have declined to 49,092 units during 5M FY13, down by 31%YoY as compared to 70,727 units during the same period last year, according to the data released by Pakistan Automotive Manufacturers Association (PAMA).

According to Alfalah Securities Limited, during November, sales volume declined to 9, units, which are down by 3% MoM and 23%YoY. The decline in car sales is mainly contributed by drop in sales of Toyota Corolla of Indus Motor Company of which 2,125 units were sold lower by 32% YoY and 21%MoM basis. While the sales of PSMC’s cars increased by 10%MoM to 5,584 and Honda Atlas Cars’ Civic sales registered a jump of 128%YoY and 4.7%MoM to 843 units in November 2012.

Moreover, Ministry of Commerce has finally issued a notification for reducing the age limit of import of used cars. The recent decision to reduce the maximum age limit for import of used cars to 3 years from previous limit of 5 years is likely to favor the local assemblers by lowering the competition which bodes well for the local Auto sector.