Pkrevenue.com

Category: Automotive

PkRevenue provides stories related to automotive industry. We focus on auto policy of Pakistan. The coverage also includes sales of domestic manufacturing.

  • Car import climbs up by 167 percent in first quarter

    Car import climbs up by 167 percent in first quarter

    ISLAMABAD: The import of motor cars has surged by 167 percent during first quarter of current fiscal year owing to after ease in coronavirus lockdown globally.

    The import of Completely Built Units (CBU) motor cars increased to $39.15 million during July – September 2020 as compared with $14.69 million in the same period of the last fiscal year, Pakistan Bureau of Statistics (PBS) said on Saturday.

    Industry experts said that as coronavirus lockdown eased in Pakistan as well as in other countries the overseas Pakistanis cleared the motor vehicles under various schemes granted by the government.

    The commercial import of motor cars is not allowed in Pakistan. However, Pakistanis are allowed to bring motor vehicles under schemes including transfer of residence, gift scheme and personal baggage.

    In the past these scheme were grossly misused and the government while taking strict action imposed restriction that clearance of motor vehicles would only be allowed on payment of duty and taxes out of those amount which was remitted into Pakistan with evidence of banking channels.

  • Car sales increase by 8 percent in first quarter

    Car sales increase by 8 percent in first quarter

    KARACHI: The sales of locally manufactured cars have registered an 8 percent increase in the first quarter (July – September) 2020/2021 in Year on Year (YoY) basis due to restoration of economic activities after lifting of coronavirus lockdown.

    According to statistics released by Pakistan Automobile Manufacturers Association (PAMA) on Monday the car sales went up to 37,017 units during the first quarter of the current fiscal year as compared with 34,308 units in the corresponding quarters of the last fiscal year.

    According to analysis by Topline Securities, the car sales have posted an increase of 18 percent YoY in September 2020 to 13,882 units. Indus Motor (INDU) and Honda Car (HCAR) registered sales increase of 106 percent YoY and 87 percent YoY, respectively.

    However, Pak Suzuki Motor Company (PSMC) sales declined by 20 percent YoY due to drop in Alto’s sales by 37 percent YoY (last year Alto saw high numbers due to its recent launch).

    Car sales also increased by 19 percent MoM in September 2020. The increase was driven by INDU’s increase of 32 percent MoM as Yaris sales picked up 42 percent MoM. HCAR sales also improved by 20 percent MoM as BRV sales increased by 50 percent MoM.

    New entrants into Pak Auto space continue to perform well with Hyundai Nishat selling 316 units (+187 percent MoM) in September 2020, while Kia Lucky Motors (KLM, non-member of PAMA) sold around 1,500 units

    KLM is also planning to shift to double-shift production from January 2021 to meet high customer demand.

    Hyundai Nishat had launched Tucson in the SUV category last month. A strong market response is visible as the number of units have jumped to 215 in September 2020 from 22 last month.

    Atlas Honda (ATLH) recorded motorbike sales of 109,002 units in September 2020, up 45 percent YoY. In 1QFY21, sales have increased by 22 percent YoY.

    Tractor sales in September 2020 are up 12 percent YoY, while also increased by 49 percent MoM. Millat Tractors (MTL) recorded an increase of 69 percent YoY while Al Ghazi Tractors (AGTL) sales declined by 31 percent YoY, respectively.

    The analysts expect demand for cars to grow stronger owing to lower interest rates for auto financing along with pickup in economic activity amidst declining cases of COVID-19.

  • Tax to apply on sale of used cars only on value addition: FBR

    Tax to apply on sale of used cars only on value addition: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Saturday said that sales tax is applicable at 17 percent on sale of used cars only on value addition.

    Clarifying news reports regarding levying of 17 percent sales tax on resale of used and refurbished vehicles, the FBR said that the existing law charged sales tax on full sale value which was harsh and excessive.

    On the request of business community who are engaged in such business and after seeking support of major chambers of commerce of the country, a clause was added in the Finance Act to provide relief and to encourage refurbishing of second hand vehicles.

    This relief is available to only registered persons in sales tax and is restricted to 17 percent of value addition made by such players.

    No unregistered person can deduct or demand such sales tax from a buyer. It is further clarified that only rules have been finalized now.

  • Policy to import used/old cars under various schemes unveiled

    Policy to import used/old cars under various schemes unveiled

    ISLAMABAD: The ministry of commerce has unveiled the policy to import new and old/used cars under Import Policy Order, 2020. The ministry issued SRO 902(I)/2020 dated September 25, 2020 to notify the Import Policy Order, 2020 and explain the policy to import motor cars under various schemes.

    (more…)
  • Car import surges by 180 percent

    Car import surges by 180 percent

    KARACHI: The import of motor cars has increased by 180 percent during first two months of current fiscal year due to normalization of life after lifting of corona lockdown.

    The import of motor cars was at $26.53 million during July – August 2020 as compared with $9.46 million in the corresponding period of the last year, showing an increase of 180 percent.

    The commercial import of motor cars is not allowed in Pakistan. However, under different schemes such as personal luggage, gift and transfer of resident schemes the overseas Pakistan can bring motor cars in Pakistan.

    In the past these scheme were grossly misused and the government while taking strict action imposed restriction that clearance of motor vehicles would only be allowed on payment of duty and taxes out of those amount which was remitted into Pakistan with evidence of banking channels.

    The import of motor vehicles in completely built units (CBU) including motor cars recorded an increase of 151 percent to $47.18 million during first two months of current fiscal year as compared with $18.76 million in the same period of the last fiscal year.

  • Car sales climb up by 16pc in August

    Car sales climb up by 16pc in August

    KARACHI: The sales of locally manufactured cars have recorded 16 percent increase to 11,678 units in August 2020 as compared with 10,102 units in the same month of the last year.

    According to data released by Pakistan Auto Manufacturers Association (PAMA) Indus Motor (INDU) and Honda Car (HCAR) registered sales increase of 52 percent YoY and 72 percent YoY, respectively. However, Pak Suzuki Motor Company (PSMC) sales declined by 9 percent YoY.

    Analysts at Topline Securities said that Kia Lucky Motors (non-member of PAMA) continued to perform well and is also planning to shift its production to double shift from Jan-2021 to meet high customer demand. As per our channel checks KIA sold around 1500 units for August 2020.

    Another new entrant Hyundai Nishat launched Tucson in SUV category during the outgoing month and successfully sold 22 units along with 88 units of Porter H-100 (a commercial pickup).

    Moreover, car sales increased by 1 percent MoM in Aug-2020, in which major increase was reported by PSMC with 20 percent MoM rise, however INDU and HCAR reported declines of 18 percent MoM and 8 percent MoM, respectively.

    Atlas Honda (ATLH) recorded motorbike sales of 85,000 units in Aug-2020, up 6 percent YoY. However, sales declined by 10 percent MoM.

    Tractor sales in Aug-2020 are up 12 percent YoY, while down by 21 percent MoM. Millat Tractors (MTL) recorded increase of 80 percent YoY while Al Ghazi Tractors (AGTL) sales declined by 51 percent YoY, respectively.

    We expect demand for cars to grow stronger as lower interest rates for auto financing along with pickup in economic activity amidst declining cases of COVID-19 has revived demand for new cars.

  • Pak Suzuki declares half year loss of Rs2.46 billion

    Pak Suzuki declares half year loss of Rs2.46 billion

    KARACHI: Pak Suzuki Motor Company Limited has reported a significant loss of Rs2.46 billion for the first half of 2020 (January to June), as per the financial results submitted to the Pakistan Stock Exchange (PSX) on Wednesday. This represents a 61.44 percent increase in losses compared to the Rs1.52 billion loss recorded in the same period last year.

    (more…)
  • TPL, Pak Suzuki sign agreement for auto insurance

    TPL, Pak Suzuki sign agreement for auto insurance

    KARACHI: TPL Insurance, Pakistan’s first Direct Insurance Company, has signed a Memorandum of Understanding (MoU) with Pak Suzuki, the country’s largest car manufacturing company to provide services of auto insurance.

    A statement on Tuesday said that following the partnership, Pak Suzuki customers can avail TPL Insurance’s services at any of the 168 Pak Suzuki authorized dealerships operating nationwide.

    Customers will have access to One Window Auto Insurance Solution offering tailored coverage backed by the fastest claim settlement ever offered in Pakistan, Online Policy Issuance, services and repair facilities at Pak Suzuki authorized 3S dealerships along with Value Added Services like Self Survey using the TPL Insurance Mobile App – all at extremely competitive rates for Pak Suzuki Customers.

    TPL Insurance’s Value Added Services include Drive Pro, Pakistan’s first Telematics Auto Insurance which lets users track driving scores based on driving metrics to spot areas for improvement, helping users drive smart and make the streets safer to drive on. The Self Survey feature enables customers to lodge claims instantly, update details of their vehicle and manage maintenance schedules. In addition to these services, customers can also Buy, Claim and Renew insurance directly through the TPL Insurance App.

    This partnership is in line with TPL Insurance’s strategy to evolve as a dominant player by exploring profitable niches through the deployment of cutting-edge technology. With disruption at its core, TPL Insurance continues to invest in platforms that will grow Insurtech in the country.

    Commenting on the occasion, Muhammad Aminuddin, CEO, TPL Insurance said, “Together with Pak Suzuki, TPL Insurance will cater to the evolving needs of the companies’ mutual customers by delivering quality coverage and disruptive insurance solutions. I am confident that this partnership will boost TPL Insurance’s footprint in the market by catering to our rapidly growing economy and the population’s increasing consumption of insurance services.”

    Masafumi Harano, Managing Director, Pak Suzuki said, “This is an ideal time for such initiatives in Pakistan as the importance of customer services is at an all-time high. We are confident to grow together and explore more transparent and creative solutions for customers.”

  • Car sales dip by 8 percent in July 2020

    Car sales dip by 8 percent in July 2020

    KARACHI: Domestic car sales have registered 8 percent decline to 11,501 units in July 2020 as compared with 12,482 units in the same month of the last year.

    Pak Suzuki Motors registered 40 percent decline in its sales to 4,991 units in July 2020 as against 8,375 units sold in the same month of the last year.

    However, Indus Motors and Honda Cars posted growth of 68 percent and 48 percent, respectively during the month under review.

    Analysts at Topline Securities said that Kia Lucky Motors (non-member of PAMA) continued to perform well. The company recorded car sales of around 1,500 units in July 2020.

    Moreover, car sales increased by 36 percent MoM in July 2020 as COVID-19 lockdowns eased with car assemblers ramping up production levels to meet pent-up demand of consumers, which is evident from 1-3 months of delivery time from the date of booking.

    All three main car assemblers reported MoM increases, with INDU reporting the highest increase of 60 percent MoM, followed by PSMC (+28 percent MoM) and HCAR (+23 percent MoM).

    Atlas Honda (ATLH) recorded motorbike sales of 94,003 units in Jul-2020, up 17 percent YoY and 4 percent MoM.

    The analysts said demand for cars to grow stronger as lower interest rates for auto financing has revived demand for new cars.

  • Sindh allows people to check number of vehicles registered on CNIC

    Sindh allows people to check number of vehicles registered on CNIC

    KARACHI: Sindh Excise and Taxation Department has introduced online facility for the citizens to check number of vehicles registered with their Computerized National Identity Card (CNIC).

    The facility has been introduced in order to curb misuse of identity and assuring people for having ownership of the vehicles.

    Provincial Minister for Excise & Taxation and Narcotics Control & Parliamentary Affairs Mukesh Kumar announced the facility. He said that the facility has been introduced for the convenience of the people under which any person can now know the number of vehicles registered on his CNIC number and for this purpose, one should log on to the website www.excise.gos.pk.

    He added that the facility would be provided soon via SMS.

    The provincial minister said that people should avail this facility. “Facilitating the people is the top priority of the Sindh Excise Department,” he concluded.