Car production increased by 33.1% in August

By Arshad Hussain

KARACHI: Car production by the local auto assemblers and manufacturers increased by 33.1 percent in August this year to 12,041 units compared to 9,041 units produced in the same month last year.

The data released by the Pakistan Automotive Manufactur-ers Association (PAMA) said on Tuesday that the sale of cars increased by 34.8 percent during the period as the companies sold 12,027 units in August this year compared to 8,920 units in August last year.

“The reduction in import duty in the fiscal year 2005-06 budget and increase in depreciation rates on used cars’ import have not hampered the local car sales,” said Faraz Farooq, auto analyst at Jahangir Siddiqui and Co.

Car sales during July-Aug 2005-06 stood at 23,530 units as against 19,169 units during the corresponding period of last year, portraying an increase by 23 percent.

On a month-on-month basis, August 2005 sales also compared favourably with those of July 2005 of 11,503 vehicles – a growth by 5 percent. This shows car sales have not been affected by the rising interest rates.

Amongst the four leading car assemblers, Honda Atlas posted highest sales growth of 114 percent to 5,259 vehicles during the first two months of fiscal year 2005-06 amidst increased production capacity. Indus Motor’s sale declined by 4 percent to 5,462 units as its plant did not operate on full capacity due to the maintenance purpose. Pak Suzuki sold 14,957 vehicles – an increase of 24 percent over corresponding period’s sales. Dewan Farooque sales grew by 7 percent and reached 1,747 vehicles.

The company has ceased the production of its KIA brand and decided to go for its CBU import.

Suzuki Baleno’s production and sales were up by 87.7 percent from 400 units to 751 units and 74 percent from 427 units to 747 units, respectively, in August 2005 as compared to August 2004, the data said.

The data said Honda Civic (140 percent sales growth year on year) and Honda City (133 percent sales growth year on year) led the charge and were the momentum drivers for the continuing year on year increase in the local car sales and production.

The sales of small cars from 800cc to 1000cc remained on top this month and the production also touched all time high.

In this segment, Suzuki Mehran’s sales and production increased by 27 percent and 41.4 percent, respectively. Suzuki Cultus production improved by 74 percent from 1,050 units to 1,838 units and its sales rose by 71.5 percent from 1,061 units to 11.820 units.

Cuore sales declined by 18 percent from 655 units to 537 units and production decreased by 37 percent from 686 units to 494 units.

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