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Tag: Indus Motors

  • Car manufacturers resume operation as lockdown eases

    Car manufacturers resume operation as lockdown eases

    KARACHI: Automobile industry has resumed manufacturing and administrative operations after the government eased lockdown.

    Honda Atlas and Indus Motors on Tuesday informed Pakistan Stock Exchange (PSX) about resumption of their manufacturing operations.

    The Indus Motors Company in its letter said:

    “With reference to our earlier disclosure of material information dated 27 March 2020, relating to the temporary suspension of plant operations of the Company due to outbreak of the COVID-19 in the country.

    “The management of the Company according to relaxation/approval given by the Sindh Government has decided to resume plant operations and its offices with adequate measures aimed at preventing the pandemic’s spread.”

    Similarly, Honda Atlas Cars (Pakistan) Limited in its letter said:

    “In view of the relaxation allowed to automobile Industry from the current situation of lockdown due to COVID-19, by the Authorities, Honda Atlas Cars (Pakistan) Limited has resumed its operations from May 19, 2020 with all precautionary measures aimed at preventing pandemics spread.”

  • Car sales come down by 44% in eight months

    Car sales come down by 44% in eight months

    KARACHI: The domestic car sales have declined by 44 percent during first eight months of current fiscal year owing to higher prices and economic slowdown.

    According to data released on Wednesday by Pakistan Automotive Manufacturers Association (PAMA), the total car sales declined to 90,834 units during July – February 2019/2020 as compared with 162,240 units in the corresponding period of the last fiscal year.

    Market experts attributed the decline to higher car prices and unattractive high interest rate. Besides the slowdown in economy is another major reason.

    The sales of Honda Car fell by 61 percent to 12,497 units during first eight months of current fiscal year as compared with 32,077 units in the corresponding period of the last fiscal year.

    The sales of Indus Motors fell by 49 percent to 22,707 units during the period under review as compared with 44,409 units in the same period of the last fiscal year.

    The sales of Pakistan Suzuki fell by 35 percent to 55,630 units during July – February 2019/2020 as compared with 85,754 units in the corresponding period of the last fiscal year.

    Pakistan’s car sales increased by 2 percent MoM in February 2020; led by 12 percent MoM rise in sales of Indus Motor (INDU).

    Pak Suzuki Motor (PSMC) and Honda Car (HCAR) both witnessed decline in sales by 3 percent MoM each.

  • Indus Motors posts 67% decline in half-year profit

    Indus Motors posts 67% decline in half-year profit

    KARACHI: Indus Motors Company Limited on Wednesday declared massive 67 percent decline in net profit for six-month period ended December 31, 2019.

    According to financial results announced by Indus Motors, the company declared Rs2.3 billion profit after tax for the half year ended December 31, 2019 as compared with Rs6.91 billion in the corresponding half in the preceding year.

    The company declared earning per shares of Rs29.32 for the period as compared with EPS of Rs87.94 in the same period of the preceding year.

    The company declared gross profit of Rs3.76 billion for six month period, which fell by 62.6 percent when compared with Rs10.05 billion in the corresponding period of the last year.

    The expenses of the company increased by 14.28 percent to Rs1.52 billion for half year ended December 31, 2019 as compared with Rs1.33 billion in the same period of the last year.

    Revenue from contracts with customers has declined 44 percent to Rs42.77 billion during the period under review as compared with Rs76.44 billion in the corresponding period of the last fiscal year.

    Cost of sales also came down to Rs39 billion for the half year ended December 31, 2019 as c compared with Rs66.39 billion in the corresponding half of the last year.

  • Car sales decline by 45% in seven months

    Car sales decline by 45% in seven months

    KARACHI – The car sales in Pakistan witnessed a significant decline during the first seven months (July–January) of the fiscal year 2019–2020, as total sales of locally assembled vehicles fell by 45 percent.

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  • Car sales slump by 44% in first half

    Car sales slump by 44% in first half

    KARACHI: Car sales have slumped by 44 percent to 67,019 units in first half (July – December) of fiscal year 2019/2020 as compared with 120,066 units in the corresponding half of the last fiscal year.

    Major drop witnessed in the sales of Honda Cars which fell 66 percent to 8,146 units during first six months of current fiscal year as compared with 24,278 units in the same period of the last fiscal year.

    It was followed by sales of Indus Motors which fell by 57 percent to 14,175 units in first half of current fiscal year as compared with 32,631 units in the corresponding period of the last fiscal year.

    The sales of Pak Suzuki Motors witnessed decline of 27 percent to 44,698 units during the period under review as compared with 63,157 units in the corresponding period of the last fiscal year.

    Analysts at Topline Securities said that overall Pakistan car sales jumped by 23 percent MoM to 12,069 units in December 2019, however the rise was largely led by 49 percent MoM increase in sales of Pak Suzuki Motor Company (PSMC).

    The other two major manufacturers, Indus Motor (INDU) and Honda Car (HCAR) sales dropped by 12 percent MoM and 23 percent MoM, respectively.

    The increase in sales of PSMC was largely driven by the announcement of increase in car prices by the manufacturer in mid of December 2019, which was effective from January 1, 2020.

    The decline reported by the other manufacturers was largely in line with the historical year-end phenomenon, where consumers generally delay their purchases until the new year.

    On a YoY basis, weak demand dynamics was again evident from a 38 percent YoY fall in sales in December 2019, taking 1HFY20 decline to 44 percent YoY.

    This is primarily attributable to 1) higher car prices mainly due to PKR devaluation and 2) higher interest rates.

    PSMC sales were down 26 percent YoY in December 2019, while INDU’s sales declined by 56 percent YoY with Corolla sales falling by 50 percent YoY.

    HCAR sales fell by 58 percent YoY during Dec-2019 with combined sales of City & Civic declining by 56 percent YoY.

    Sale of motorcycles by Atlas Honda (ATLH) witnessed an increase of 6 percent YoY as sales clocked in at 85k units, however it recorded a decline of 11 percent MoM.

    Tractor sales recorded a growth of 75 percent YoY with Millat Tractor (MTL) sales rising by 175 percent YoY. On the MoM basis, overall tractor sales were down 37 percent MoM.

    Analysts expect recovery in car sales volumes from start of 2020 as we believe volumes would have bottomed out in December 2019.

  • Car sales witness 45 percent decline in July – November

    Car sales witness 45 percent decline in July – November

    KARACHI: Car sales witnessed 45 percent decline during first five months (July-November) 2019/2020 owing to increased prices and high cost of auto financing.

    According to sales data released by Pakistan Auto Manufacturers Association (PAMA), the industry witnessed sale of 54,950 units during first five months of current fiscal year as compared with 100,643 units in corresponding months of the last fiscal year.

    Analysts at Topline Securities attributed the fall to higher auto prices post rupee devaluation and higher interest rates for auto financing.

    Honda Cars (HCAR) sales fell 67 percent to 7,141 units during July – November 2019/2020 as compared with 21,911 units in the same period of the last fiscal year.

    Honda Cars sales 62 percent YoY during November 2019, where combined sales of City and Civic fell by 66 percent YoY, however it recorded increase of 4 percent on Month on Month (MoM). BR-V reported a decline of 24 percent YoY and 34 percent MoM.

    The car sales of Indus Motors (INDU) fell by 57 percent to 11,843 units during first five months of current fiscal year as compared with 27,307 units in the same months of the last fiscal year.

    Indus Motors (INDU) reported second consecutive MoM increase in volumetric sales; up by 6 percent MoM mainly due to 10 percent MoM and 8 percent MoM increase in its Corolla and Fortuner variants, respectively.

    This increase in volumes is on the back of aggressive promotions, discounts & different waiver schemes offered by company in collaboration with commercial banks. However, INDU continues to report a decline on YoY basis; down by 52 percent YoY in November 2019.

    The sales of Pak Suzuki Motors Company (PSMC) posted decline of 30 percent to 35,966 units during first five months of current fiscal year as compared with 51,425 units in the corresponding period of the last fiscal year.

    Pak Suzuki recorded a 31 percent YoY decline in November 2019. The decline in sales was led by Wagon-R and Cultus, which is down 70 percent YoY and 41 percent YoY respectively.

    Furthermore Alto has also depicted monthly decline of 27 percent YoY which is highest since its launch.

    Bolan and Ravi variants are down 58 percent and 56 percent YoY, respectively. Swift sales were down by 42 percent YoY.

    The analysts expect recovery in car volumes from start of 2020 as auto volumes will likely bottom out in December 2019.

  • Meezan Bank, Indus Motors sign MoU for priority vehicle delivery

    Meezan Bank, Indus Motors sign MoU for priority vehicle delivery

    KARACHI: Meezan Bank – Pakistan’s leading Islamic bank – has recently signed a Memorandum of Understanding with Indus Motor Company Ltd (IMC) – one of the largest automotive manufacturers and distributors in Pakistan, to provide priority delivery of all Toyota variants to Meezan Bank’s customers.

    The signing ceremony took place in Karachi and was attended by Arshad Majeed – Group Head Consumer Finance, Meezan Bank and Abdul Rab – Senior General Manager, Indus Motor Company Limited along with their respective team members.

    Under this agreement, Meezan Bank will provide additional value-added services of priority processing as well as fast track delivery of Toyota vehicles to customers of Meezan Car Ijarah, Pakistan’s first Riba-free car financing product.

    Arshad Majeed while speaking at the occasion said, “Meezan Bank is the leading player in Pakistan’s Islamic Auto Financing industry. We are hopeful that our alliance with Indus Motor Company Ltd will further facilitate our clients by providing them with the best services across the country.”

    Meezan Bank is the leading Islamic Bank of Pakistan and the 7th largest Bank in the country. Meezan Bank has consistently been recognized as the Best Islamic Bank in Pakistan by numerous local and international institutions, which is a testimony of the Bank’s commitment to excellence. The Bank has also been recognized as the Best Bank – 2018 by Pakistan Banking Awards, the most prestigious awards in the country’s banking sector.

    The Bank provides a comprehensive range of Islamic banking products and services through a retail banking network of over 680 in 190 cities supported by a countrywide network of over 700 ATMs, Visa & MasterCard Debit cards, a 24/7 Call Center, Internet Banking and Mobile Banking facility.

    The VIS Credit Rating Company Limited (Formerly JCR-VIS Credit Rating Company Limited), an affiliate of Japan Credit Rating Agency, Japan has reaffirmed the Bank’s long-term entity rating of AA+ (Double A Plus) and short-term rating at A1+ (A One Plus) with stable outlook. The rating indicates sound performance indicators of the Bank.

  • Indus Motors declares fall in half-year profit on high cost of sales

    Indus Motors declares fall in half-year profit on high cost of sales

    KARACHI: Indus Motors Company Limited has declared 6.13 percent decline in half yearly net profit owing to significant rise in cost of sales for the period.

    According to financial results for half year period ended December 31, 2018 submitted to Pakistan Stock Exchange (PSX) on Monday, the company declared profit after tax at Rs6.912 billion as compared with the profit of Rs7.364 billion in the corresponding half of the last year.

    The sales of the company surged by 21 percent to Rs76.44 billion during the first half of current fiscal year as compared with Rs63.07 billion in the corresponding half of the last year.

    However, cost of the sales increased more rapidly by 27 percent to Rs66.38 billion for the period under review as compared with Rs52.18 billion in the same period of the last year.

    Other expenses including administrative and distribution are flat at Rs1.337 billion as compared with Rs1.334 billion for the period.

    Indus Motors Company Limited declared profit before taxation at Rs10.03 billion during July – December 2018 as compared with Rs10.51 billion in the corresponding period of the last year.

    The company declared earnings per share for the period at Rs87.94 as against Rs93.69 EPS declared in the same period of the last year.

  • Car sales decline 3.2 percent in July – January

    Car sales decline 3.2 percent in July – January

    KARACHI: The car sales have declined by 3.2 percent during first seven months of current fiscal year despite higher prices owing to depreciation of rupee value.

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  • Auto sales post 12-year growth in December on MoM basis

    Auto sales post 12-year growth in December on MoM basis

    KARACHI – Pakistan’s auto sales market has experienced a significant turnaround in December 2018, with a sharp rise in sales compared to the previous month.

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