Auto sector strong despite falling auto sales in August – Journal
KARACHI: The first two months of fiscal year 2021-22 (2MFY22) proved to be very satisfactory for the entire automotive sector, with growth in car sales of 93%, followed by a 199 pc increase in jeeps .
A strong increase of 150 pc was observed in sales of trucks, followed by 119 pc of light commercial vehicles (LCV), 18.4 pc of tractors, 2 pc of buses and 1.3 pc of two-person vehicles. and three wheels. Despite a monthly decline in car sales in August to 17,899 units from 20,669 units in July, overall 2MFY22 sales climbed to 38,568 units from 20,008 units. However, automobile production increased by 112 pc to 32,718 units against 15,457 units in 2MFY21. Some car variants exceeded expectations. For example, the production and sales of Suzuki Alto 660cc excelled with a sharp increase of 862 pc and 145 pc to 8,445 and 11,141 units from 878 and 4,547 units.
In the 1300cc and above category, Suzuki Swift, which is discontinued by Pak Suzuki Motor Company Limited, saw its production drop from 165 units to 382 units. However, Swift sales were almost unchanged at 379 units compared to 378 units in 2MFY22.
In the higher engine power segment, an increase in production and sales of Toyota Corolla was recorded, which increased by 72% and 78% to 4,118 and 4,262 units in 2MFY22 compared to 2,397 and 2,395 units in during the same period in FY21. Toyota Yaris production and sales increased 10% and 32% to 3,864 and 4,725 units from 3,519 and 3,588 units in fiscal year 2M.
The Honda Civic and City performed poorly against their competitors, registering a 10% and 6% jump in production and sales to 4,449 and 4,426 in 2MFY22 from 4,058 and 4,190 units in 2MFY21.
Demand for SUVs, vans and other vehicles remains optimistic amid rising prices
Figures from the Pakistan Automotive Manufacturers Association (PAMA) showed two new variants of Hyundai Nishat Motors – Elantra and Sonata – with sales of 415 and 305 units in 2MFY22, respectively.
In the 1,000cc segment, Suzuki WagonR production and sales were 3,147 and 3,810 units versus 783 and 1,299 units, up 302% and 193% from 2MFY21. Suzuki Cultus production and sales also increased by 149% and 185% to 5,958 and 7,058 units compared to 2,388 and 2,477 units in 2MFY21. Suzuki Bolan production and sales jumped 25% and 81% to 1,592 and 2,047 units in 2MFY22 from 1,269 and 1,134 units in the same FY21 months.
The low interest rate and record auto financing of Rs.314 billion by banks through July 2021 played a big role in boosting auto production and sales in FY21, the momentum continuing in 2MFY22. In 2020, the automotive segment experienced a difficult period from March to June with the spread of the Covid-19 pandemic, with the country entering a strict lockdown in April 2020. Assemblers are now taking advantage of the strong backlog.
Jeeps, pickup truck sales increase
Another segment – light commercial vehicles, jeeps and vans – also remained on a high note, with some vehicles already sold becoming more demanding. Toyota Fortuner production and sales increased to 981 and 990 units from 274 and 267 units, up 258 and 271 pc from 2MFY21.
Production and sales of Hyundai Tucson increased 258% and 1,568% to 323 and 367 units from 84 and 22. Sales of Honda BR-V amounted to 1,047 and 1,111 units from 539 and 535 units, up 99% and 108% from 2MFY21.
In light trucks, production and sales of Suzuki Ravi reached 2,616 and 2,808 units versus 1,066 and 1,159 units, up 145 and 142 percent, followed by increases of 32 and 116 percent in production. production and sales of Toyota Hilux at 1,457 and 2,377 units compared to 1,103 and 1,100 units. JAC’s production and sales increased from 72 and 94 units to 108 and 115 units. Nissan D-MAX production fell to 60 units from 165, but sales fell from 62 units to 81.
Hyundai Porter’s production and sales were 252 units each in 2MFY22 – up 473 pc and 64 pc, respectively – compared to 44 and 154 units in the same period in FY21.
Demand for cars, SUVs, vans and vans has remained strong despite rising prices due to the vulnerable exchange rate from August 2020 to date, high transportation costs, shortage of chips and late arrivals of parts. and accessories due to port congestion, late delivery time extending to Q1 2022 and high own money on on-site purchases in showrooms. However, the federal budget for fiscal year 22 provided for a slight price relief due to the relaxation of duties and taxes on vehicles.
In agricultural machinery, Fiat and Massey Ferguson sales jumped 33% and 12% to 2,708 and 4,940 units from 2,034 and 4,410 units. Total truck sales amounted to 1,104 units in 2MFY22 compared to 441 units a year ago. Bus sales increased 2% to 100 units from 98 units a year ago.
In two-wheelers, sales of Honda bikes increased 12% to 200,039 units from 179,003 units, while sales of Suzuki and Yamaha improved to 5,703 and 3,985 units from 2,730 and 2,596 units. Among the losers, sales of United Auto Motorcycle and Road Prince fell to 58,285 and 20,591 units in 2MFY22 from 70,419 and 25,342 units in 2MFY21.
Sales of the Qingqi, Sazgar, Road Prince and United three-wheelers remained depressed with 2,194, 2,071, 1,305 and 337 units compared to 3,226, 2,337, 1,801 and 1,394 units, down 32, 11 respectively. , 28 and 76. Total sales of two and three wheels amounted to 294,802 units compared to 290,948 units in 2MFY21.
Posted in Dawn, le 11 September 2021