Despite of severe issues regarding Economic instability, power outages, availability of cheap imported cars, and rise in PACK parity against Dollar/SPY, Auto sector performance in the benchmark index remain relatively better. During IFFY, Locally produced cars plus Less stood at 134658 units as compared to 178753 in the same period last year (down by 25%), while, sales of imported car in the review period clocked in at 45378 units (down 18. 5% YOU) Only 14 different cars are produced out of which 8 cars belong to Pack Suzuki alone.
Suzuki Alto and Dadaists Cure were discontinued, which has left the total number of locally assembled cars to 12 only. Locally assembled car sales are expected to go up in fiscal year 2013-14 by at least 5-10% in the wake of a continuous decline in used car imports. Pipsqueak,(SCM) is the country’s largest auto assembler (56% share in industry sales) followed by Indus (28 % share) and HACK with respectable (16% share in market). Pakistan auto industry contribution to GAP in 2013 is $3. 6 Billion. Locally produced cars plus Less
CITY stand at 68630 which in global terms is a contribution of only 0. 21% and 0. 376% Asia wide. IFFY would show muted growth as the positive impact of declining SPY is yet to come and sales would be affected due to recent floods and monsoon rains Government has promoted Import of hybrid vehicles by reducing duties and taxes. Impressive volumetric performance by HACK and upcoming new models of INDUS are expected to improve the sector’s performance in IFFY. In IFFY the industry was able to produce 135663 units and sold 134658 units.