Local Car Sales witness 14% increase in Fiscal Year 2016-17

car sales

In the Fiscal year 2016-17, the sale of locally manufactured vehicles in Pakistan including light commercial vehicles, vans, and jeeps have seen a rise of 14 percent.

According to data compiled by Pakistan Automotive Manufacturers Association (PAMA), 213,119 units excluding the Punjab Taxi Scheme were sold by the end of June 2017.

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A report by Topline Securities relays that this continuing growth of car sales can be credited to the improvement in macroeconomic growth, the introduction of lower financing rates and new card models by the auto companies.

In FY17, Pak Suzuki witnessed a strong sale of Wagon R which increased by 37 percent year on year basis. Overall the company saw 17 percent year on year increase in sale.

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Honda Atlas, on the other hand, left other companies behind by boasting a 52 percent year-on-year growth owing to the introduction of a new model of Civic and compact SUV BR-V.

Indus Motors unlike other companies saw a 6 percent year-on-year decline in its car sales. Many analysts believe that the company’s fate will change with the launch of its widely anticipated facelift of Corolla.

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Furthermore, the sale of two and three wheeler vehicles saw a strong growth by 19 percent year-on-year basis. This change is observed due to the rise in disposable income of lower middle class.

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