LAHORE - Local car sales in January jumped by a significant 57% to reach 13,910 units compared to 8,868 units in previous month (December 2013), according to the latest data released by the Pakistan Automotive Manufacturers Association (PAMA).

According to data, auto sales including light commercial vehicles, vans and jeeps in the first seven months (July-January) of fiscal year 2013-14 (FY14) also increased to 75,162 units, up 6.8% compared to 70,351 units in the same period last year.

Analysts and industry officials both had predicted a sharp jump in car sales in January, as most people prefer to wait in December to book new car models in the first month of the year.

“The sharp jump in January car sales is not unexpected as the demand for November and December 2013 also shifted to January (people prefer New Year car models),” JS Global Capital analyst Atif Zafar said.

Commenting on the seven-month figure, he said the increase of 7% in overall car sales was perfectly fine and as per market expectations. He thinks car sales in February will decline by 5-10%, adding there were two reasons for that. First, January sales jumped because of low sales in November and December 2013 and second January sales usually remain high compared to other months.

Pakistan local car sales (including LCVs, Vans and Jeeps) during 7MFY14 has reached 75,162 units, up 6.8%, as compared to 70,351 unit in the same period last year.

 However on monthly basis, locally manufactured car sales have improved to 13,910 units in Jan 2014, up 57% versus 8,868 units in Dec 2013 and up by 8.6% YoY. We attribute increase in sales to ‘New Model’ phenomenon.

Amongst individual companies, Pak Suzuki (PSMC) sales improved by 3.0% to 42,581 units during 7MFY14 as compared to 41,328 units last year. However, on monthly basis, PSMC sales picked up to 7,089 units in Jan 2014 which is up 18.5% MoM. Monthly increase in sales is on account of increased sales of Ravi, Swift and Mehran.

During 7MFY14, Indus Motors (INDU) sales increased by 5.0% to 19,171 units as compared to 18,259 units in 7MFY13.  Improvement in sales is primarily contributed by 4.8% increase in ‘Corolla’ sales to 16,486 units in 7MFY14. However, on monthly basis, INDU sales has jumped to 3,992 units in Jan 2014, up 101%, compared to 1,982 units in last month.

Honda Cars (HCAR) sales surged by 19.7%YoY to 12,589 units in 7MFY14. During Jan 2014, sales of HCAR improved by 297% MoM to 2,600 units.