October 12, 2009

MARKET MOVER
Topline Research

Cars & LCVs sale dropped in Sep due to lesser

working days
Pakistan’s local assembled car industry, that witnessed rise in sales for six
months in a row amid economic stability, posted a month-on-month decline
in Sep 2009. Car sales (PCs and LCVs) during the outgoing month fell by Research Analyst
10% compared to Aug 2009 mainly due to lesser working days on account
Furqan Punjani
of Eid related holidays. Thus, we believe, going forward the rise in month- furqan.punjani@topline.com.pk
on-months sales to continue due to the fact that most of the cars are Tel: +92(21) -35303330-2 Ext. 125
delivered with a time lag and immediate delivery is on premium that is
higher than the official company price.
Sales grew by 13% YoY during the quarter
Compared to the comparable quarter last year, the car sales inched up by
13% due to falling car prices, decline in car imports and strengthening
consumer confidence. The increase in sales is led by newly launched
Toyota Corolla by Indus Motors. This improvement in car sales is in spite of
the fact that banks were reluctant to provide car financing, which was the
major demand driver in the past.
Passenger Cars (PCs) witnessed an impressive quarterly growth of 22%
YoY to reach 26,812 units compared to 21,954 units in the same quarter
last year. However, Light Commercial Vehicles (LCVs) posted a decline of
24% YoY to 3,975 units with a cumulative increase of 13% to 30,787 units.
Local firms sold 21% more cars from previous quarter
Interestingly on QoQ basis cumulative car sales grew by 21% compared to
25,397 units sold in the previous quarter (Apr-Jun 2009) mainly due to
reduction of 5% excise duty which made car affordable to consumers amid
improving sentiments in the economy after IMF funding.

Major Cars & LCVs Sales

Y-o-Y M-o-M
Model July-Sep 08 July-Sep 09 % ∆ Aug '09 Sept '09 %∆
Toyota Corolla 1,919 8,951 366% 3,172 2,655 -16%
Suzuki Mehran 5,169 5,158 0% 1,983 1,798 -9%
P Suzuki Cultus 3,377 2,852 -16% 968 975 1%
A Suzuki Alto 2,281 2,365 4% 733 1,003 37%
K Others 14,413 11,461 -20% 4,161 3,443 -17%
I Total 27,159 30,787 13% 11,017 9,874 -10%
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Topline Securities (Private) Limited
R 306, Continental Trade Centre, 3 Floor
E Block 8 Clifton, Karachi
S Pakistan
Tel: +9221-5303330-32
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