Auto sales for November increase

RECORDER REPORT

KARACHI: The auto sales for the month of November 2011 stood at 11,926 units against 11,765 units in the same month last year, marginally growing by 1 percent on year-on-year basis.

The Pakistan Automotive Manufacturers Association (PAMA) has released the auto sales numbers for November 2011 here on Monday.

Pak Suzuki (PSMC) registered an impressive growth of 15 percent on year-on-year basis on the back of Yellow Cab scheme offered by the Punjab government. It is recalled that the government had only approved PSMC's Mehran and Bolan for this subsidised scheme.

On the other hand, Indus Motor (INDU) and Honda Car's (HCAR) sales have declined by 17 percent on year-on-year basis each. "We attribute increase in prices by the manufacturers for the decline in their sales", Atif Zafar, an analyst at JS Global Capital said.

On a month-on-month basis, auto sales have fallen by 21 percent in November 2011.

"The decline was largely anticipated owing to consumers delaying their purchases to take advantage of next year's registration and lesser working days in the month due to Eid holidays", Atif said.

Hence, during the five months of FY12 auto sales have risen by 20 percent on year-on-year basis thanks to growth in home remittances and Punjab government's Yellow Cab scheme, he added.

"Looking ahead, we expect auto sales to stand in the vicinity of 172,000 units in FY12 - a growth of 17 percent compared to last year", he said.