Pakistan locally manufactured car sales, including LCVs, vans and jeeps during 5MFY13 have declined by 31 per cent to 49,092 units compared to 70,727 units in same period last year. During November 2012, local car sales stood at 9,154 units, 3 per cent down as compared to 9,397 units last month while are 23 per cent down as compared to 11,926 in the same month last year.

Industry experts said that sluggish volumes are primarily on account of rising inventory levels of used imported CBU’s, termination of Non EURO-II compliant cars (Alto and Coure) and absence of taxi scheme.

Data says that amongst individual companies, Pak Suzuki (PSMC) has sold 28,337 units during 5MFY13, down 34 per cent as compared to 42,738 units last year. However, on monthly basis, PSMC sales increased to 5,584 units, up 10 per cent as compared to 5,094 units last month, thanks to increased sales of ‘Mehran’ and ‘Cultus’.

Indus Motors (INDU) 5MFY13 sales have declined by 37 per cent to 13,128 units as compared to 20,932 units in 5MFY12. Decline in sales on account of 38 per cent YoY decline in Corolla sales to 11,047 units in 5MFY13. On monthly basis, INDU sales declined to 2,125 units, 21 per cent down as compared to 2,704 units in Oct’12 and 32 per cent down as compared to 3,126 units in Nov’11.

However, in the period of sluggish sales, Honda Atlas Cars (HCAR) sales have jumped to 7,429 units during 5MFY13, 9 per cent up as compared to 6,790 units in 5MFY12. Increase in sales in primarily attributable to 20 per cent YoY rise in ‘Civic’ sales and revival of production after Thailand flooding last year.

Support to volumes can emerge after the recent decision by ECC (Economic Coordination Committee) to restrict used cars imports by restricting age limit from previous 5 years to 3 years.

However keeping in view of high inventory levels of used imported cars in the market, we expect lagged reflection in the locally manufactured car sales.