Post Reply 
 
Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Auto import up 166% in April
06-14-2011, 02:47 PM
Post: #1
Auto import up 166% in April
* PAMA says significant high import drags down car sales

KARACHI: Taking full advantage of relaxation in auto import policy given by the government, local dealers have taken auto import to an unprecedented high level that recorded an increase of 166 percent in April 2011 as compared to the previous month of March, Daily Times learnt on Monday.

According to the latest numbers released by Pakistan Automotive Manufacturers Association (PAMA), car sale has declined by a notable 6.0 percent on yearly basis. The main reason for the decline in local auto sales is the rising share of import post the relaxation of the auto import policy in late December by the government.

As a result, auto imports in April stood at 1,799 units as against 676 units in March, reflecting a rise of 166 percent. The average monthly sales during January-April 2011 have augmented to 1,070 units, compared to average monthly sales of 274 units in FY 2010.

While car sales declined in May, an increase of 23 percent on yearly basis in sales of [large commercial vehicles (LCVs)] largely mitigated the impact of the decline in industry’s overall auto sales (down 1.0 percent). However on monthly basis, auto sales plunged by 5.0 percent.

The decline was largely expected owing to production cuts suffered by the local auto assemblers coupled with relaxation in the auto import policy by the government, Atif Zafar, an analyst said.

“Another decline of 20-25 percent is expected in the month of June in anticipation of 3.0 percent decline in auto prices from July 1 (thanks to the removal of 2.5 percent special excise duty and a cut of 1.0 percent in general sales tax),” he added.

Although, auto sales declined by a nominal 1.0 percent on yearly basis, the Indus Motor (INDU) and Honda Car (HCAR) witnessed substantial falls of 15 percent and 37 percent, respectively on yearly basis.

The decline in INDU was a consequence of the company suspending booking of its vehicle on April 20, 2011 for a period of 22 days due to supply side issues resulting from the earthquakes in Japan, while HCAR too witnessed significant production disruptions for the same reason.

On the other hand, Pak Suzuki (PSMC) sales increased by a substantial 20 percent on yearly basis. He said that the abnormal growth in sales of PSMC is because of the backlog of booking for its CNG-fitted vehicles. It may be mentioned that the company had earlier halted booking of its CNG-based vehicles due to suspension of its supplier’s licence by the authorities.

The analyst believed that the auto sector might remain in the red zone on the back of increased regulatory risks and continuous rise of Japanese yen against the rupee (up 5.0 percent QTD). However, the Punjab government’s allocation of Rs 4.5 billion to provide 20,000 yellow cabs is likely to act as a major catalyst for PSMC.
Visit this user's website Find all posts by this user
Quote this message in a reply
Post Reply 


Possibly Related Threads...
Thread: Author Replies: Views: Last Post
  Finance Minister Unveils Export-Import Bank (EXIM) in Islamabad LRE-Azan 0 156 12-22-2023 06:36 PM
Last Post: LRE-Azan
  Encroachments On Litton Road Destroys The Auto Spare Parts Business Salman 0 4,874 07-26-2013 06:53 PM
Last Post: Salman
  ‘Balochistan to import 1,000MW power from Iran’ Salman 0 4,033 03-27-2012 12:13 PM
Last Post: Salman
  Roadside auto workshops create problems for pedestrians, residents Salman 0 3,787 03-17-2012 02:19 PM
Last Post: Salman
  Pak, Iran agree to complete power import projects soon Salman 0 4,204 02-15-2012 01:16 PM
Last Post: Salman
  Pakistan to import 500MW electricity from India Salman 0 4,654 01-10-2012 11:55 AM
Last Post: Salman
  Pakistan aims to import electricity from India Salman 0 4,482 01-03-2012 12:28 PM
Last Post: Salman
  Govt decides to import 700,000 tonnes of urea by mid-November Lahore_Real_Estate 0 3,332 10-20-2011 02:02 PM
Last Post: Lahore_Real_Estate
  Government allows import of five-year-old buses Lahore_Real_Estate 0 3,501 05-20-2011 12:03 PM
Last Post: Lahore_Real_Estate
  PSO unable to import oil Lahore_Real_Estate 0 3,228 03-07-2011 06:22 PM
Last Post: Lahore_Real_Estate
  Auto dealers exploiting car import policy Lahore_Real_Estate 0 4,326 01-29-2011 02:11 PM
Last Post: Lahore_Real_Estate
  Cabinet allows import of up to five-year-old cars Lahore_Real_Estate 0 3,752 01-27-2011 02:54 PM
Last Post: Lahore_Real_Estate
  Govt set to allow import of used vehicles Lahore_Real_Estate 0 3,419 11-05-2010 01:24 PM
Last Post: Lahore_Real_Estate
  Used Cars Import Suggested: Summary Ready LRE 1 5,295 07-16-2010 01:20 AM
Last Post: LRE
  Used Cars import to be Allowed LRE 0 3,820 05-09-2010 02:32 PM
Last Post: LRE
  Govt allows duty-free import of new cars to disabled persons Lahore_Real_Estate 0 9,707 05-01-2010 10:20 AM
Last Post: Lahore_Real_Estate
  Ban on import of used computers unjust: KCCI Lahore_Real_Estate 0 3,246 04-07-2010 11:36 AM
Last Post: Lahore_Real_Estate
  Country deprived of $1 billion by secretly accepted higher bid on LPG import Naveed Yaseen 0 3,649 03-29-2010 11:08 AM
Last Post: Naveed Yaseen
  Gwadar Port Very Important; Will Use for Urea Import LRE 0 6,235 03-22-2010 06:57 PM
Last Post: LRE
  Ban suggested on used computer import LRE 1 5,621 03-13-2010 09:31 PM
Last Post: LRE

Forum Jump:


User(s) browsing this thread: 2 Guest(s)