Aided by improved macro economic indicators, the countrys automobile industry reported a steady sales growth during the last fiscal year - bringing total car sales volumes up to 123,957 units in FY10 from 82,844 units a year earlier.
Enhanced agriculture income, upbeat remittance flows in FY10, along with the low base effect--as industrys sales has toppled in FY09 - led to a recovery in the sector.
The rise was in part driven by high end car sales (1300 and above cc), which logged a 57 percent increase to 61,008 units in FY10.
Indus Motors Corolla performed the best on the back of its strong brand loyalty, competitive prices, introduction of new model and low base effect due to phasing out of the previous Corolla model.
The low end car segment - 1000 cc and below - also fared well during the year. Growth in this segment came mainly on the back of higher demand for Suzuki Alto and Suzuki Mehran.
On the flipside, the economic turnaround didn help Dewan Motors Santro and Indus Motors Cuore much, which saw sales tumble by around 39 and 9 percent, respectively, in FY10 compared to a year ago.
On the growth front, Indus Motor Company (INDU) outperformed other automakers with 48 percent growth in sales during FY10, while Pakistan Suzuki (PSMC) followed with sales growth of 46 percent. Therefore, PSMC and INDU managed to increase its market share at the expense of Honda Atlas and Dewan Motors.
In addition to robust car sales, growth also spread to other divisions of auto industry, such as tractors, pickups, jeeps, trucks and two wheelers.
With improving consumer confidence and car sales for June shooting through the roof, reached 14,320 units highest in past two years, the industry is gunning for higher demand in the ongoing fiscal year.
Conversely, however, growth in sales, primarily in the low end car segments, is still at the mercy of overall auto financing situation in the country.
Moreover, the fate of industry will remain unclear until the announcement of upcoming trade policy, expected this month, since government officials are lobbying to relax rules on used car imports.