Car sales skyward

Car financing climbs 44 percent to Rs346billion. Splendid auto-financing by the banks till October was based on the previous approvals during the last three to six months. The SBP had reduced the period of auto-financing from seven to five years along with decreasing the debt burden ratio from 50percent to 40percent. Other measures by the central bank included aggregate financing restraint to be availed by one person from all banks not exceeding Rs3 million at any point in time and minimum down payment for auto financing increased from 15 to 30percent. These measures are applicable to imported vehicles and locally manufactured vehicles with an engine capacity of over 1,000ccc.Imports of parts, accessories in 4 months fiscal year2022 recorded strong growth of 162 percent. Import of parts and accessories during the first four months of fiscal year 2021-22 by the car assemblers posted an excellent growth of 162 percent to $520million as compared to $198million in the same period in fiscal year20-21.Imports of completely built up cars the new and used have also dropped to $28million in October from $36million in September 2021. Total imports of CBU units in four months of 2022 rose by 112percent to $123million from $58million in the same period in fiscal year 2021.Imports of CKD/SKD kits were really made on old advance booking orders of the assemblers.
The share of auto-financing in total car sales ranged between 30 to 40percent. The real impact of SBP’s decision will be seen in March/April 2022 as the assemblers had been holding large booking of previous orders but the share of car financing by the bank is feared to decrease to 20-25 percent. A number of car assemblers including Korean assemblers are giving delivery time of March to June 2022 in case a buyer makes an advance booking today. Excluding Toyota models, Pak Suzuki Motor Company Limited has already temporarily suspended booking of Suzuki Alto Automatic and Cultus Automatic and VXR versions owing to rising semi-conductor chip shortage. Besides, car prices were raised by 5to 15percent recently by the assemblers recently due to rising cost of production accelerating raw material prices, freight charges and rupee devaluation against the dollar. The government had reduced duties and taxes in the Budget fiscal year 2022 which resulted in price cut in cars and SUVs by 62,000-400,000. Nevertheless the effort was in vain after assemblers raised prices upwards earlier this month. The first four months of the present fiscal year proved to be another landmark for the auto sector where highest sales rise of 104 per cent were recorded in jeeps, 93percent in pick-up vans, 71percent cars, 82 percent trucks, 14percent farm tractors and 0.5pc two/three-wheelers. In spite the frequent price hike, Atlas Honda Limited broke its own highest-ever sales record by achieving 125,031 units in October, which were 125,030 in March. The data released by the Pakistan Automotive Manufacturers described only 1percent less in bus sales In spite of a slight decline in sales in October with 17,413 units, as compared to 18,971 in September, likelihood buyers lifted 74,952 cars in four months2022 contrast 43,865 units in the same period last fiscal year, due low car financing by banks. In spite of a slight decline in sales in October with 17,413 units, as compared to 18,971 in September, likelihood buyers lifted 74,952 cars in fourmonths22 contrast 43,865 units in the same period last fiscal year, due low car financing by banks.
Suzuki Cults beat all its competitors by recording a 181percent jump in sales to 11,454 units from 4,079 units in 4 months, while Toyota Corolla attained the second spot with 102pc rise to 9,937 from 4,928 units. The 660cc Suzuki Alto raised as the third highest selling car with a 97percent jump to 20,773 from 10,544 units. Suzuki Wagon sales grew by a gigantic 85 to 6,779 from 3,658 units. The years-old Bolan sales soared by 65percent on 4,012 units from 2,438, while the combined sales of Honda Civic/City went up by 25percent to 10,444 from 8,341 units. The sales of Toyota Yaris rose by 2percent to 9,277 from 9,067 units, while those of the newcomer Hyundai Elantra from July to October stood at 1,036 units. The rising movement of goods import and export can be known by the high sales of trucks to 2,011 units in 4 months from 1,104 units in the same period last year. Hinopak sales recovered to 305 units from 181 followed by a huge jump in Master truck sales to 691 from 295 units. Isuzu and JAC truck sales stood higher with 940 and 75 units in the four months of fiscal year 2o22 from 568 and 60 units, respectively. Sales went down 1percent to 184 units from 186 units in which Hino fell to 51 from 72 units, while Master and Isuzu bus sales increased to 103 and 30 units from 87 and 27 units, respectively.
The affluent customers appeared to have taken a liking for jeeps as their overall sales rose 4,901 from 2,401 units in four months Toyota Fortune, Tucson and Honda BR-V sales hit 2,473, 1,042 and 1,386 units from 629, 448 and 1,324 units, respectively. Total pick-up van sales climbed 10,038 from 5,199 units in which sales of Suzuki Ravi and Toyota Hilux rose by 157pc and 50percent to 5,171 and 3,856 in 4 moths fiscal year JAC, D-Max and Hyundai Porter sales went up to 318, 155 and 538 units from 166, 118 and 333 units, respectively. Improving agriculture indicators were shown in the rising sales of tractors. Fiat and Massey Ferguson sold 6,686 and 10,700 units in the four months of fiscal year2022 as compared to 4,950 and 10,232 units in the same period last year. Japanese motorcycle assemblers continued to enjoy good business as Suzuki and Yamaha sales emerged to 11,661 and 8,098 units as compared to 6,628 and 6,823 units in 4month. Chinese bike assemblers remained under pressure as sales of Road Prince and United Auto Motorcycle sank to 43,940 and 115,474 units from 51,099 and 134,120 units.