After closing off FY16 with all-time high sales in the passenger car segment of the auto sector, July sees a drop in sales by 12 percent month on month in cars and a 7 percent decline in year-on-year growth of cars and jeeps. Overall, the auto sector according to data reported by PAMA saw a 10 percent decline year on year in 1MFY17, selling 16,073 units compared to 17,869 units in 1MFY16. Between June and July, sales have fallen by 25 percent making a somber start to this fiscal. (Read our year-end coverage “Autos on a roll” published July 18, 2016).
The appetite for big and small engine cars has been subdued and there have been several shifts in demand with some brands taking a back seat while some new models have already been launched that could ease the pressure.
After wrapping up the Rozgar Scheme, Pak Suzuki Motors (PSMC) sales for Bolan and Ravi predictably both saw a drop. Bolan sales have plummeted by over 1,300 units between 1MFY16 and 1MFY17 whereas Ravi has also faced a similar fate recording a drop of 1,200 units between these time periods. Bolan and Ravi’s sales have also dropped between June and July of 2016-by 29 percent and 14 percent respectively. Mehran has kicked off the fiscal year with a moderate drop of one percent in sales compared to July of last year but an 8 percent decline in June and July sales.
The limited edition Cultus that received rave reviews has also slid back to its earlier sales numbers selling just 1,138 cars in July compared to 1,600 in June. Suzuki will, however, be soon bringing Celerio that would replace Cultus and 7th generation Alto. WagonR that was doing so well has disappointed with a drop in sales of more than 200 units in a month on month.
Honda Atlas Cars (HCAR)’s sales with its Civic and City have grown by 10 percent in the month on month growth rebounding due to the late July launch of 10th generation Civic models (in three grades: 1.8 i-VTEC, and 1.8 i-VTEC Oriel and all-new VTEC TURBO). The demand is encouraging despite a heavier price tag. Honda had been struggling with civic sales and closed off its first quarter (April-June) with a drop in revenues and profits of 7 percent and 3 percent respectively, the new model will help revenues for certain as production comes up.
Indus Motor Company (INDU) with its flagship variant Corolla also sees a drop of 5 percent and 9 percent in year on year and month on month growth selling 3,678 cars in July. Fortuner sales have also dropped by half; selling 42 units in July compared to 84 in June.
Dewan Farooque Motors will soon be restarting production and will be bringing Kia cars along with a 1.5-ton truck and a 1,600cc SUV with the help of SsangYong China.
In commercial vehicles front, the four brands reported by PAMA of trucks & buses (Hino, Nissan, Gandhara, and Master) sold 700 units, a significant increase from 1MFY16 where the real stars were Hino and Isuzu trucks. FAW motors are also fast becoming a key player in commercial vehicles claiming 20 percent of the marketing share in trucks producing 1,000 units annually and selling about 300 units of pick-up and vans per month, expecting them to double in coming months.
Tractor’s sales continue to come down but might resuscitate in light of the tractor subsidy scheme in coming months
