March 12, 2020 (PPI-OT)

Auto sales decline by 39% YoY in Feb-2020

Auto sales posted yet another decline in Feb-2020, dropping by 39% YoY.

Pak Suzuki Motor Company (PSMC) saw the biggest contraction in unit sales of 50% YoY in Feb-2020, similar to Jan-2020, whereas during 1HFY20, the company had been faring better than the other two OEMs with relatively smaller drops in volumes.

Indus Motor Company (INDU) recorded 18% YoY shortfall in volumes, whereas its performance improved on MoM basis with a 12% increase. In comparison, the OEM's unit sales had reduced by 49% YoY during 8MFY20.

Honda Atlas Cars (HCAR) posted a 35% YoY drop in volumes, compared to 61% YoY during 8MFY20.

Auto sales (Cars + LCVs) continued on a downwards trend in Feb-2020, declining 39% YoY. Although since Jul-2019, when auto volumes began to fall full throttle, Indus Motors (INDU) and Honda Atlas (HCAR) were leading the rout, since Jan-2020 and now in Feb-2020, Pak Suzuki Motors (PSMC) has been witnessing the largest plunge in volumes, with unit sales shrinking by 50% YoY during the latest month. On the other hand, INDU's sales contracted by 18% YoY in the month, compared to 49% YoY in 8MFY20, whereas HCAR saw sales cut by 35% YoY in Feb-2020 vs. a massive 61% YoY reduction in 8MFY20.

For PSMC, the decline in sales is mainly due to the lower volumes of the Suzuki Alto. In January and February, the company could only manage unit sales of 1,794 and 1,620 respectively, vs. an average of ~4k units/month in 1HFY20. This decrease in demand for the Alto is most likely due to the repeated price increases in the recent past, coupled with the introduction of Prince Pearl 800cc variant in a price range of ~Rs1.1mn, i.e. ~20% cheaper than the lowest priced Alto variant.

© Pakistan Press International, source Asianet-Pakistan