Pakistan auto industry
Despite of severe issues regarding Economic instability, power outages, availability of cheap imported cars, and rise in PKR parity against Dollar/JPY, Auto sector performance in the benchmark index remain relatively better.
During FY13, Locally produced cars plus LCVs stood at 134658 units as compared to 178753 in the same period last year (down by 25%), while, sales of imported car in the review period clocked in at 45378 units (down 18.5% YoY)
Only 14 different cars are produced out of which 8 cars belong to Pak Suzuki alone. Suzuki Alto and Daihatsu Cuore were discontinued, which has left the total number of locally assembled cars to 12 only.
Locally assembled car sales are expected to go up in fiscal year 2013-14 by at least 5-10% in the wake of a continuous decline in used car imports.
Paksuzuki,(PSMC) is the country's largest auto assembler (56% share in industry sales) followed by Indus (28 % share) and HCAR with respectable (16% share in market).
Pakistan auto industry contribution to GDP in 2013 is $3.6 Billion. Locally produced cars plus LCVs CYTD stand at 68630 which in global terms is a contribution of only 0.21% and 0.376% Asia wide.
1HFY14 would show muted growth as the positive impact of declining JPY is yet to come and sales would be affected due to recent floods and monsoon rains
Government has promoted Import of hybrid vehicles by reducing duties and taxes. Impressive volumetric performance by HCAR and upcoming new models of INDU are expected to improve the sector’s performance in FY14.
In FY13 the industry was able to produce 135663 units and sold 134658 units. It operated at 53% capacity utilization.
JPY had depreciated by 15% YoY which was supposed to ease down the cost pressures of all three assemblers. However USD appreciated by 6% under the same period, cancelling out the positive impact of declining JPY.
The devaluation of PKR against USD and other currencies has urged the local companies to increase their car prices.
During FY13, Locally produced cars plus LCVs stood at 134658 units as compared to 178753 in the same period last year (down by 25%), while, sales of imported car in the review period clocked in at 45378 units (down 18.5% YoY)
Only 14 different cars are produced out of which 8 cars belong to Pak Suzuki alone. Suzuki Alto and Daihatsu Cuore were discontinued, which has left the total number of locally assembled cars to 12 only.
Locally assembled car sales are expected to go up in fiscal year 2013-14 by at least 5-10% in the wake of a continuous decline in used car imports.
Paksuzuki,(PSMC) is the country's largest auto assembler (56% share in industry sales) followed by Indus (28 % share) and HCAR with respectable (16% share in market).
Pakistan auto industry contribution to GDP in 2013 is $3.6 Billion. Locally produced cars plus LCVs CYTD stand at 68630 which in global terms is a contribution of only 0.21% and 0.376% Asia wide.
1HFY14 would show muted growth as the positive impact of declining JPY is yet to come and sales would be affected due to recent floods and monsoon rains
Government has promoted Import of hybrid vehicles by reducing duties and taxes. Impressive volumetric performance by HCAR and upcoming new models of INDU are expected to improve the sector’s performance in FY14.
In FY13 the industry was able to produce 135663 units and sold 134658 units. It operated at 53% capacity utilization.
JPY had depreciated by 15% YoY which was supposed to ease down the cost pressures of all three assemblers. However USD appreciated by 6% under the same period, cancelling out the positive impact of declining JPY.
The devaluation of PKR against USD and other currencies has urged the local companies to increase their car prices.