The major smack to the sales of four-wheeler came on the heels of subdued sales in 1000 cc and below category, mainly because of the completion of Punjab Yellow Cab taxi scheme under which the Government distributed 20,000 yellow cabs to the youth of the province. Moreover, the production of Cuore and Alto completely purged off, as both models have been discontinued by the respective manufacturers.
On the flip side, the farm tractor category illustrated a remarkable boom of 69 percent YoY in 4MFY13, demonstrating a sales volume of 13,983 units, as against 8,269 units in 4MFY12. During October, the tractor sales volume thrived by 41 percent on year-on-year basis, up from 4,054 units during the same period last year.
The major contribution to the boom in farm tractor cadre came from the sales of FIAT tractors which propped up by 1.65 times YoY in 4MFY13 owing to the Green Tractor Scheme under which FIAT tractors were distributed to farmers via balloting, at a subsidized rate of Rs200,000 compared to the price tag of Rs550,000. Massey Ferguson tractor sales also gushed by 34 percent in 4MFY13, as compared to the same period last year, which further buttressed the tractor category.
Amongst individual companies, PSMC sales during 4MFY13 declined by 35 percent to 22,753 units as against 34,877 units sold in the similar period last year. The major reason was the completion of Punjab Governments taxi scheme for which Suzuki Mehran and Suzuki Bolan were selected.
After the conclusion of the scheme, the collective sales of Mehran and Bolan in 4MFY13 plummeted by 24 percent YoY.
During 4MFY13, Indus Motors sales plunged to 11,003 units, 38 percent down as compared to the same period last year. The decline in sales is largely attributable to the termination of Daihatsu Cuore production. As of 4MFY13, Cuore witnessed a trivial sales volume of 71 units as against 1,532 units in 4MFY12.
However, on month-on-month basis, Indus Motors sales demonstrated an uptick of 28 percent. This monthly rise in the sales volume is attributable to 22 percent MoM growth in Corolla sales to 2,155 units on the back of the launch of its new model.
Moreover, the Company also introduced navigation system in its Corolla Altis range, which was well received by the market. Hilux sales also grew 57 percent MoM to 549 units, as a result of the introduction of interior changes which were able to gain buyer interest.
In contrast to the other two players, Atlas Honda car sales for 4MFY13 clocks in at 6,009 units, having attained a nominal growth of 1.97 percent YoY.
Currently, imported cars having an age limit of five years and depreciation limit of 48 percent is incentivising customers to opt for the refurbished imported cars instead of locally assembled cars. During FY11-12, around 56,000 used cars were imported which dealt a severe blow to the local industry sales.
Yet in 4MFY13, the key reason of dismal performance quoted by the industry sources is the humongous arrival of imported cars. However, auto assemblers are engaged in extensive dialogues with the GoP for the forthcoming Auto Industry Development Programme (AIDP).
The industry is asserting for the reduction in age limit of imported cars to three years and the reduction in depreciation limit to 24 percent. The industrys fortunes are likely to get better provided a restrictive import policy is put in place in line with persistent industry demands.