Increase In Car Sales Is Expected To Rise
Increase In Car Sales Is Expected To Rise: Sales of cars and light commercial vehicles are expected to rise five percent to 21,805 units in May as compared to the corresponding month a year earlier, a brokerage reported on Wednesday. Sales of cars and light commercial vehicles stood at 20,720 units in May last year.
Analyst Ahmed Lakhani at JS Global Capital said lower growth is expected in sales of Pak Suzuki Motor Company(PSMC), which contributes over 50 percent to the sector’s sales.
“We believe that sluggish PSMC sales are partly due to resumption of used cars imports that created downward pressure on the manufacturers’ volumes,” Lakhani said.
Price increases in various variants of PSMC during January and March are also expected to take a toll on volumes during the month.
Honda Atlas Cars is expected to witness a 10 percent year-on-year decline in sales in May.
Auto sales are expected to clock in at 240,106 units in the July-May period, up 21 percent.
Millat Tractors and Al-Ghazi Tractors are expected to continue on the growth cycle on the back of higher demand amid agricultural incentives, including reduction in general sales tax. “Both are likely to register an increase of 22 percent and 13 percent during the period under review,” Lakhani said.
He said car sales are likely to further dip as the government banned registration of cars on the name of non-filers.
Around 40 to 50 percent of sales are because of non-filers.
Automakers had informed all the car dealers that they would not entertain customers who were non-filers. Those who have booked cars would also face problems to get timely delivery. If they become filer before the due date they will get the vehicle on time.
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