2016, so far, has been a profitable year for Pakistan as the auto industry grew noticeably. However, July 2016 did not go too well for four-wheeler car manufacturers as the month saw a decrease in sales by 12% despite the launch of the most awaited 2016 Honda Civic.
According to reports from Pakistan Automobile Manufacturers Association (PAMA) 13,932 units including LCVs, SUVs, vans, and cars were sold during the month.
One of the highly possible reasons behind this downfall can possibly be the ‘Apna Rozgar’ scheme which has brought a decline towards Suzuki Bolan and Suzuki Ravi which fell by 53.3% and 51% in sales.
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Hamza Raza, Analyst at Topline Securities, sales have risen by 36%, excluding Bolan and Ravi. Also, Eid was observed in July, people were more focused on buying food items and clothes over cars, and days off means decrease in purchases.
He added, ““We expect car sales to remain robust in fiscal year 2016-17 (FY17) – despite the absence of the Taxi Scheme – since Pak Suzuki Motor Company (PSMC) would be launching a new model – Celerio (1,000cc category) – in the latter half of this year and Indus Motors (INDU) would continue to see strong demand due to its Corolla.”
“We believe that Honda City is the main contributor to HCAR’s sales growth; additionally, volumes of the new model of Honda Civic are expected to pick up considering demand from pre-booking and response at launch. Civic’s launch attracted attention from prospective buyers with more interest towards the 1.5L Turbo variant.”
Not just that, taking about the automotive industry, manufacturers have been raising prices, which is also another why we may possibly see another decrease. One of these manufacturers is Pak Suzuki, which announced an increase in price for their Suzuki Mehran, Cultus, Swift, and other models.
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Stay tuned to Brandsynario for more updates.