Wednesday Apr 11, 2012

Car sales up by 15pc during 9 months of current financial year

ISLAMABAD: Pakistan car (including LCVs, Vans and Jeeps) sales during 9MFY12 rose by 15pc to 128,576 units compared to 111,852 units in same period last year.

The volumetric growth primarily stems from i) June to July deferred sales on account of reduced tax structure announced in Federal Budget FY12 ii) Yellow cab scheme announced by the Punjab Government iii) 21pc increase in workers' remittance in 9MFY12 and iv) monetization due to rising government fiscal deficit.

According to Topline Securities analysis report, in 3QFY12 (Jan-Mar) the industry sales rose by 7pc from 43,753 units to 46,632 units in same period last year, while are up by a significant 22pc as compared to last quarter (Oct-Dec).

In March 2012 car sales stood at 16,678 units up 6pc as against 15,710 units sold in March of last year and are up 11pc versus 14,962 units sold last month.

With respect to individual companies, PSMC continued to depict strong growth of 32pc in 9MFY12 to 81,360 units versus 61,693 units seen in same period last year as it stands out to be the prime beneficiary of announced yellow cab scheme. In 3QFY12, the company sales stood at 30,642 units from 3QFY11, up 31pc and 26pc from 3QFY11 and 2QFY12, respectively. In March, PSMC sales stood at 11,198 units, up 16pc from same month last year and 12pc from last month.

Indus Motors 9MFY12 sales growth remained subdued. Company sold 38,858 units compared to 37,259 units in same period last year, up by 4pc. In 3QFY12 the company sold 14,792 units against 14,851 units in the same period last year, but depicted a significant jump of 26pc as compared to last quarter.

The recent recovery in sector's volumetric sales along with the improved margin is expected to bode well for the sector's profitability going forward. (PPI)