Car sales decline by a staggering 50%

[LRE]

Car sales decline by a staggering 50%

By Moonis Ahmed

KARACHI: The industry auto sales (cars, LCV and pickup) in the first two months of the fiscal year 2009 have declined by a massive 50 percent to 17.1,000 units, data released by Pakistan Automobiles Manufacturers Association said.

The cars sales alone showed a poor performance during July-August 2008 and fell by 60 percent to 11,177 units versus 28,225 units in corresponding period of the last year.

The cars sales with the greatest decline recorded in Santro (DFML) and Corolla (INDUS) models of 94 percent and 91 percent YoY respectively to 42 units and 639 units in 2MFY09.

The new Corolla model was launched in Aug-08 in the 1,800-2000cc categories. Total Corolla sales in Aug-08 were at 341 units, which is a 14 percent increase MoM (mainly due to low-base effect as Jul-08 sales were a 7-yr low for Corolla). Initial sales figures point towards a lukewarm response to the new Corolla, Ayub Ansari analyst at Invest Capital said in his report on auto sector.

Industry LCV and Pickup sales bucked the dominant trend and grew by 28 percent YoY to 3800 units in 2MFY09. Industry auto sales improved by 31 percent MoM to 9700 units. Industry car sales (+35% YoY) were spurred by higher PSMC sales (+53 percent MoM), which were low in Jul-08 due to its plant shutdown for maintenance. Higher Hilux (+52 percent MoM) and Ravi (+43 percent MoM) sales contributed towards the 18 percent MoM rise in industry LCV and Pickup segment sales.

At the company level, all the listed auto assemblers recorded a decline in sales with DFML recording the steepest fall of 79 percent YoY. PSMC and HCAR (car segment) managed to increase their respective market shares by 10.91pps and 5.55pps YoY respectively to 67.9 percent and 15.8 percent during 2MFY08. DFML and INDUS posted a decline in their respective market share of 2.98pps and 12.28pps YoY, settling at 2.2 percent and 15.6 percent in 2MFY09.

http://www.dailytimes.com.pk/default.asp...2008_pg5_2