KARACHI – Auto sales have registered a monthly nine percent decline in February 2011. This slump is triggered by the high base effect as buyers are looking to purchase cheaper imported cars after the government relaxed import and depreciation policies.
According to the data released by Pakistan Automotive Manufacturers Association (PAMA) for the month of Feb’11, auto sales fell by a monthly nine percent, while it augmented an annual six percent and reached 12,248 units. A category wise break shows that 1300cc vehicles declined a significant 22 percent to 5,861 units mainly due to Corolla sales, which slumped 27 percent during the said period.
Furthermore, Corolla contributed 63 percent to total car sales in the 1300cc category. However, the 800cc category increased 34 percent as sales of Cuore and Mehran rose by a monthly 27 percent and 17 percent respectively. The basis total car units posted increased by an annual 13 percent in February 2011.
The best performing segment remained 800cc category, mainly on account of an annual 30 percent improvement in sales of Cuore. We have an underweight stance on the sector due to rising steel prices, continuous depreciation of Pakistani Rupee against JPY and US Dollar, said Shahbaz Ashraf at AHL. He added that that, consequently, gross margins of auto assemblers would remain under pressure.
