Cars sale jumped 61 percent in July

ISLAMABAD: Auto sales in the country witnessed a significant increase as the sale of automobile increased by 61 percent during the month of July, 2011.

According to the data released by Pakistan Automotive Manufacturers Association (PAMA) about 17,563 units were sold in month of July as against 10,942 units in same period last year.

On month on month basis, the volumetric sales improved by 134 percent as compared to 7,517 units sold in June 2011, the data revealed.

This significant improvement is primarily attributable to deferred sales from June to July as buyers opted to take advantage of 2-3 percent reduce in price on account of reduction in sales tax by 1 percent and other measures announced in Federal Budget for FY 2011-12.

Company wise break up shows that, PSMC led the increase with 116 percent rise to 11,997 units compared to mere 4,503 seen in same period last year, while sales for INDU declined by 9 percent to 4,551 units compared to 4,999 units in July 2010.

Despite improved volumetric sales, we maintain ‘Market-weight’ stance on the sector on account of strained margins amid continuous appreciation of Japanese yen and high regulatory risk, it added.

Copyright APP (Associated Press of Pakistan), 2011