KARACHI: Pak Suzuki Motors Company Limited on Tuesday announced to stop operations in compliance with the government efforts to contain spread of coronavirus epidemic.
(more…)Tag: Pak Suzuki
-
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.
-
Finance ministry may resolve taxation issues of automotive industry
KARACHI: A standing committee of the National Assembly has assured that finance ministry to convene an exclusive meeting for resolving taxation issues of automotive industry.
The National Assembly standing committee paid its visit to Pak Suzuki Motors under the chairmanship of Sajid Hussain Turi on Wednesday.
The Committee informed that an exclusive meeting may be convened with FBR, and Ministry of Finance to resolve the problems of Additional Customs Duty, Federal Excise Duty, Additional Sales Tax, shortly.
During the visit the management of Pak Suzuki Motors welcomed the Members and senior officers of GOP, at Suzuki Head office.
The committee witnessed the manufacturing of different vehicles in the plant under the supervision of well experienced team of Pakistani and Japanese Suzuki engineers and workers.
The committee members expressed their well wishes for the Improvement of Pak Suzuki plant which was established in 1992, after visiting the plant.
The Managing Director, Pak Suzuki Motors, Pakistan warmly welcomed the Committee. Shafiq Shaikh, head of Public Relations and official spokesperson briefed the Committee about the historical background of the institution.
He appraised the Committee with regard to different Cars launched by Suzuki Motors time to time in Pakistan, including some imported vehicles and newly introduced cars.
The Managing Director, responded the questions raised by the Members regarding quality of products as compared to imported vehicles, the Committee expressed its satisfaction in this regard.
Shafiq Shaikh explained the causes of increase in prices. He said high mark up rates of Banks loans, over burden of taxation, several additional duties, rupee devaluation, increase in fixed costs / utilities, high trend of inflation and non implementation on Automotive Development Policy(ADP) 2016-21 were the major reason of low production in the automotive sector, which also caused the price fluctuation in the market. Additional Secretary, Ministry of Industries informed that taxation matters were taken up earlier with Ministry of Finance and Revenue but they didn’t respond properly in that regard in last financial year.
The Committee appreciated the role of Pak Suzuki Motors , Management and appreciated Harano, MD and Shaikh for providing the good quality/ standards products in Pakistan and launching of new models of cars and Motorbikes.
Several members along with senior officials from ministry of industries, EDB and PSM attended the meeting.
-
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.
(more…) -
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
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.
-
Pak Suzuki declares huge loss of Rs1.52 billion in first half despite multiple increases in prices
KARACHI: Pak Suzuki Motors (PSMC) has declared massive loss of Rs1.52 billion for the first half ended June 30, 2019 despite multiple increase in prices of vehicles during the period.
According to half yearly financial results submitted to Pakistan Stock Exchange (PSX), the company posted net loss of Rs1.525 billion as compared with growth of Rs1.29 billion in the corresponding half of the last fiscal year.
According to Topline Securities, Pak Suzuki Motors posted loss per share (LPS) of 6.62 against earning per share (EPS) of Rs 4.78 for the quarter April to June 2019 in same period last year.
Significant decline in earnings was mainly due to massive reduction in gross profit margins by 5ppts.
During outgoing quarter revenue of the company witnessed a mere 1 percent YoY growth to Rs31 billion despite multiples hikes in prices owing to declining volumetric sales in said period.
Gross profit margin were down by 5ppts, due to significant PKR depreciation against USD by 14 percent in 2QCY19 coupled with inflationary environment leading to high input costs.
§ Distribution cost has increased by 56 percent YoY due to higher transportation costs (from factory to dealer) which is currently borne by the company.
The company has booked a tax reversal (higher tax recorded in previous accounts) owing to change in turnover expectations.
Other Income has witnessed decline of 76 percent YoY mainly due to low income from bank deposits as the company has reduced cash balance in its accounts after decline in advance payments from customers.
Finance cost has increased by 1.8x YoY due to addition of short term borrowings in the outgoing quarter.
Key risks to company includes 1) Further PKR depreciation 2) slowdown in economy and 3) Entry of new auto players resulting in stiff competition.
-
Car sales down 4 percent on economic slowdown, high prices
KARACHI: The sales of locally assembled cars have declined by 4 percent during first nine months (July-March) 2018/2019 owing to slowdown in economy and recent rise in car prices, analysts said on Wednesday.
The sales of locally assembled cars fell to 185,023 units during July – March 2018/2019 as compared with 192,734 units in the corresponding period of the last fiscal year, according to Pakistan Auto Manufacturers Association (PAMA).
Analysts at Topline Securities attributed the decline in car sales to slowdown in economy and rise in recent car prices.
Indus Motors (INDU) reported 11 percent YoY decline during March 2019 mainly on account of lower sales of Fortuner & Hilux, which were down 63 percent and 65 percent, respectively, YoY.
The analysts said that this was due to 10 percent Federal Excise Duty (FED) imposed on above 1700 CC engine cars.
Corolla sales posted growth of 2 percent YoY.
Pak Suzuki (PSMC) reported 23 percent YoY growth in sales led by growth in Wagon R with growth of 63 percent YoY.
Other major contributors in overall growth were Cultus, Bolan and Ravi, up by 17 percent, 38 percent and 36 percent YoY, respectively.
Swift was the only PSMC variant to record decline, down 16 percent YoY.
Honda cars (HCAR) sales fell 29 percent YoY in Mar 2019, steepest YoY decline during a month since May 2012. In addition to economic factors, decline in City and Civic variants is attributed to anticipation of a launch of new variant (Civic 1.5 Turbo new variant launched in April-19).
The analysts said that overall demand of automobiles is expected to remain subdued due to recent hike in policy rate (+475bps since Jan 2018 to 10.75 percent), resulting in higher borrowing cost for auto financing.
Furthermore, incremental cost as a result of rupee devaluation & increasing inflation has led to higher car prices, impacting purchasing power of car buyers.
To note, the government is mulling over removal of 10 percent FED on engines with 1700CC above, as per news reports.
However no official announcement has yet been made, adding to the uncertainty to the car sales with engine size of over 1700CC.
-
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.
(more…)