PkRevenue provides stories related to automotive industry. We focus on auto policy of Pakistan. The coverage also includes sales of domestic manufacturing.
Pakistan car sales (including KIA) clocked in at 24,000 units in October 2021, down 4 per cent MoM.
Analysts at Topline Securities said that Pak Suzuki (PSMC) had stopped booking of certain variants of Cultus and Alto models due to supply side constraints which had an impact on its overall sales during the month.
Honda Car (HCAR) also witnessed lower MoM sales due to rising competition and anticipated launch of KIA Stonic.
Sales of HCAR and PSMC were down 27 per cent and 8 per cent MoM, respectively. Indus Motors (INDU) continued to post strong growth growing by 10 per cent MoM. Hyundai Nishat also recorded 10 per cent MoM increase in car sales.
With stringent regulation on car financing by SBP and rising interest rates, car sales can slow down further going forward.
On YoY basis, car sales improved by 49 per cent YoY driven by PSMC and INDU sales which were up 69 per cent and 26 per cent, respectively. In 4MFY22, car sales increased by 75 per cent YoY to 90k units primarily due to low base and macro recovery.
Pakistan bike sales as reported by PAMA were up 14 per cent MoM and 1 per cent YoY to 177k units in Oct 2021 where Atlas Honda (ATLH) recorded growth of 14 per cent MoM and 8 per cent YoY.
Pakistan tractor sales posted growth of 22 per cent MoM and 19 per cent YoY, reporting sales of 5k units during Oct 2021. Trucks & buses sales were down 5 per cent MoM and up 32 per cent YoY.
(1) In case of goods transport vehicles, tax of two rupees and fifty paisa per kilogram of the laden weight shall be charged.
(1A) In the case of goods transport vehicles with laden weight of 8120 kilograms or more, advance tax after a period of ten years from the date of first registration of vehicle in Pakistan shall be collected at the rate of twelve hundred rupees per annum;
(2) In the case of passenger transport vehicles plying for hire with registered seating capacity of—
S.No.
Capacity
Rs per seat per annum
(i)
Four or more persons but less than ten persons.
50
(ii)
Ten or more persons but less than twenty persons.
100
(iii)
Twenty persons or more.
300
(3) In case of other private motor vehicles shall be as set out in the following Table, namely:-
S. No.
Engine capacity
Tax
(1)
(2)
(3)
1.
upto 1000cc
Rs. 800
2.
1001cc to 1199cc
Rs. 1,500
3.
1200cc to 1299cc
Rs. 1,750
4.
1300cc to 1499cc
Rs. 2,500
5.
1500cc to 1599cc
Rs. 3,750
6.
1600cc to 1999cc
Rs. 4,500
7.
2000cc & above
Rs. 10,000
(4) where the motor vehicle tax is collected in lump sum,
S. No.
Engine capacity
Tax
(1)
(2)
(3)
1.
upto 1000cc
Rs. 10,000
2.
1001cc to 1199cc
Rs. 18,000
3.
1200cc to 1299cc
Rs. 20,000
4.
1300cc to 1499cc
Rs. 30,000
5.
1500cc to 1599cc
Rs. 45,000
6.
1600cc to 1999cc
Rs. 60,000
7.
2000cc & above
Rs. 120,000
(Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
KARACHI: Indus Motor Company Limited has reported a remarkable 195% increase in net profit, reaching Rs5.42 billion for the quarter ended September 30, 2021, compared to Rs1.84 billion during the same period last year.
BEIJING: Moin ul Haque, Pakistan Ambassador to China, on Wednesday said that Pakistan is planning to enhance automobile annual production from 0.25 million to eight million units during next five years.
“It is a bit ambitious target but it is possible to achieve this target due to the yearly growth in production as well as interest showed by different automobile companies from across the world especially from China which plans to invest in Pakistan,” he said while addressing Pakistan Automobile Industry Roundtable Seminar held at Pakistan Embassy, Beijing.
The representatives of over 50 renowned automobile companies from different parts of China attended the seminar.
While addressing the participants, the ambassador said that a number of the Chinese companies are already in Pakistan in automobile manufacturing sector while up to 10 new companies have showed interest to invest in Pakistan and are in the process of having joint ventures with their local partners in the private sector.
He informed that the government is formulating a new and very attractive automobile sector policy which will be announced soon, adding, more incentives and concessions in taxes are likely to be offered in the new policy.
Ambassador Haque said that automobile companies including manufacturers of energy vehicles from China will be invited to set up their plants both in the Greenfield and Brownfield sectors.
Giving details about the automobile sector in Pakistan, he said that the automobile is the fastest growing sector in Pakistan because of the large demand in view of the population which is close to 220 million people.
In the past, the Japanese manufacturers had set up their production units but in the recent times the Chinese automobile companies also started looking at the opportunities available in Pakistan.
He said that China is now becoming one of the leaders of automobile manufacturer in the world with very high quality products and expressed the pleasures that the Chinese companies have also entered to the Pakistani automobile market.
While sharing the opportunities under the China Pakistan Economic Corridor (CPEC), he said that the flagship project of the Belt and Road Initiative (BRI) has entered into the second phase which is focusing industrialization, science and technology and agriculture sectors.
“We are setting up special economic zones where we are inviting the Chinese investors to come and set up their manufacturing units,”he added.
Ambassador Haque said that special incentives and policies have been announced for the Chinese companies and so far close to 100 Chinese companies have already established are in the process of establishing their units in the special zones.
He said that the infrastructure like roads, highways and communication network is being upgraded in Pakistan and invited the Chinese companies to take advantage of all these incentives and expand their presence.
Welcoming the representatives of the automobile companies, Commercial Counselor, Badar uz Zaman said that the new automobile policy for years 2021 to 2026 will soon be announced offering more incentives and benefits to local and foreign investors.
He informed that under the current automobile a number of new companies particularly Chinese manufacturers entered in Pakistani market.
Badar said that a number of Chinese companies are already setting up their businesses in Pakistan while some new companies are keen to invest in Pakistan owing to investment friendly policies offered by the present government.
He informed the companies that government has formulated rules and regulations which support the foreign investment in Pakistan.
Badar also shared details of the incentives, concessions in the taxation and easy repatriation of profits.
“Many local companies listed with the stock exchange are very keen and are looking forward to the Chinese partners for the joint ventures,” he added.
He said that there are over 600 auto parts manufacturers who are also supplying the parts to the existing players, adding, “We offer very comprehensive auto financing policies and the banks are very active.
And the amount that has been financed in cars is three times more than the housing finance in Pakistan.”
The commercial counsellor also shared with the companies details of concessions on taxes, duties and particularly cheap labour.
He said that in the current global scenario when there is a supply chain shock, and it is difficult to move things from one place to another place, it is right time for the Chinese investors to take advantage of Pakistan location, low wages and other benefits.
Later, representatives of the companies who are already operating in Pakistan shared their experiences and put forward some useful proposals.
Some new companies which plan to enter into Pakistani automobile industry asked questions and more details about the policies.
The representatives of Anhui Jianghuai Automobile Group, Beijing Henrey Auto, Hozon New Energy Automobile, BAIC Intl, Great Wall Motor Company, Beijing Sanxing Automobile, Foton Motor Group, Tianjin Tianqi Group Meiya Automobile, Zhongtong Bus Holding Co., Youtong Bus, Dongfeng Motor Company, Jiangxi Jiangling Motor, Xiamen Golden Dragon Bus Co., Liaoning Aerospace Automobile Co., Wolkswagen Group, Geely Automobile International Corporation and others attended the seminar.
KARACHI: The sales of locally assembled / manufactured cars witnessed a growth of 58 per cent in September 2021 due to lower tax rates and rise in auto financing.
This targeted step will help to moderate demand growth in the economy, leading to slower import growth and thus supporting the balance of payments.
The changes in the regulations effectively prohibit financing for imported vehicles and tighten regulatory requirements for financing of domestically manufactured/ assembled vehicles of more than 1000 cc engine capacity and other Consumer Finance facilities like personal loans and credit cards. Following changes have been made in this regard:
— Maximum tenure of auto finance has been reduced from seven (7) to five (5) years;
— Maximum tenure of personal loan has been reduced from five (5) to four (4) years
— Maximum debt-burden ratio, allowed to a borrower, has been decreased from 50 to 40 percent;
— Overall auto financing limits availed by one person from all banks/DFIs, in aggregate, will not exceed Rs3,000,000, at any point in time; and
— Minimum down payment for auto financing has been increased from 15 percent to 30 percent.
With the objective to protect lower to middle-income category purchases, these new regulations are not applicable to locally manufactured or assembled vehicles of up to 1,000 cc engine capacity, the SBP said.
They are also not applicable to locally manufactured electric vehicles to promote the use of clean energy.
The financing of these two categories of vehicles will continue to be governed by the previous set of regulations.
Further, in order to encourage Roshan Digital Accounts and facilitate overseas Pakistan who have opened these accounts, regulatory instructions for Roshan Apni Car products of the banks or DFIs have also not been changed.
ISLAMABAD: The Federal Cabinet on Tuesday approved a significant reduction in additional customs duty on the import of auto parts, lowering it from seven percent to two percent. This decision aims to boost the indigenous production of vehicles in Pakistan and promote local manufacturing.
Mehmood Arshad, Country Head – Marketing Pak-Qatar General Takaful and Suneel Sarfaraz Munj, Chairman PakWheels.com signed the Memorandum of Understanding along with senior officials, said a statement on Monday.
Since its inception in 2003, PakWheels.com has helped millions of Pakistanis buy and sell automobiles, read automotive reviews and news, check automotive prices and find solutions to all of their automotive needs.
PakWheels.com gets over 25 million visitors annually who view more than 250 million pages on the website. Last year alone, close to 50 per cent of Pakistan’s internet population visited PakWheels.com to buy and sell over 400,000 vehicles.
While speaking at the signing ceremony, Mehmood Arshad stated: “It is indeed great honor for us to join hands with PakWheels.com as this partnership will bring fruitful results for both business partners. Also, masses will benefit from seeking protection for their vehicles in case of any untoward incident.”
Suneel Sarfaraz Munj, Chairman PakWheels.com commented: “We are glad to sign this Memorandum of Understanding with Pak-Qatar General Takaful as we are hopeful that our customers will benefit from Motor Takaful coverage offered by PQGTL.
I am confident that such kind of partnerships will further offer convenience to online customers.”
The collaboration will facilitate MMBL Borrowers by allowing them to finance commercial vehicles from Universal Motors through subsidized offerings, according to a statement issued on Monday.
President & CEO MMBL, Ghazanfar Azzam, and Adil Noman, CEO Universal Motors signed the MoU in Islamabad with senior officials from both organizations in presence.
The collaboration will usher in fast-track and priority financing for MMBL borrowers to attain commercial vehicles from Universal Motors for starting or expanding their business operations, under convenient terms.
Following the MoU, MMBL customers will get fast product delivery Turnaround Times (TAT), in addition to the provision of 1S/2S/3S dealership or retailer services by Universal Motors, near MMBL branches across the country to extend after-sale services for borrowers.
Creating further ease for borrowers, the vehicles will be delivered at MMBL branch cities with Universal Motors sharing the registration costs, and offering vehicle delivery from Karachi to the destination city at subsidized transportation rates.
Sharing his thoughts at the signing ceremony, President and CEO MMBL, Ghazanfar Azzam said,” MMBL’s expansive product portfolio has witnessed a significant growth trajectory over the past few years with the introduction of more and more customer-centric products that are aimed at facilitating maximum convenience for empowering our borrowers in true sense.
“This collaboration with Universal Motors will further solidify our aim of promoting hassle-free attainment of commercial vehicles, for business use, which will substantially be backed by quality after-sales services.”
Adil Noman, CEO Universal Motors said, “Our collaboration with MMBL will help us target low-income groups that need financing for our sturdy and dependable JMC commercial vehicles. Universal Motors is introducing special financial incentives and logistical support to fully facilitate MMBL borrowers.
“We are hopeful that our collaboration with MMBL will drive our shared ambition of supplementing the economic development of Pakistan.”
