Date: 17-May-2021

Automobile sales slowed down owing to Ramadan in Apr’21

with 17k units sold
KASB RESEARCH
According to data released by Pakistan Automobile Manufacturers Association
Pakistan Automobile Assemblers
(PAMA), the automobile industry saw vehicle sales at 17,233 units during Apr’21. On a
sequential basis, the sales slowed down by 17% MoM owing to the advent of Ramadan
and ensuing limited activity. However, on a cumulative basis, vehicle sales reached
151,951 units for Jul’20-Apr’21 period, up by 54% YoY. This makes up 83% of our FY21
projected industry sales of 184k units.
On a YoY basis, the imposition of lockdown because of the COVID-19 pandemic
outbreak meant near-zero vehicles were sold last year. Apr’20 was notably the hardest
hit month from the imposed restrictions. In contrast, Apr’21 has witnessed a
phenomenal increase in sales. To note, a resurgence of demand and pent-up sales have
taken trailing 12-month cumulative sales to over 165k units. Passenger car sales during
ANALYST: the month stood at 14,435 units, down by 16% MoM while LCV and 4x4s sales stood
Asad Ali at 2,798 units lower by 25% YoY.
EMAIL:
asad.ali@kasb.com  Indus Motors (INDU) saw a slower rollout of vehicles after its best production
month in Mar’21. The company saw vehicle sales of 5,355 units sold for the month,
CONTACT: a decline of 20% M/M, led by Yaris and Fortuner variants. Cumulative sales for
+92 21 35340496
10MFY21 stood at 48,025 units (up by 90% YoY). INDU has led the local OEMs in
terms of growth owing to the timely launch of Toyota Yaris.
 Honda Atlas Cars (HCAR) saw a sequential drop in sales during the month to 2,287
units as compared to 3,153 units in the previous month. The 27% MoM decline
was a result of lackluster sales across its model line-up. During the month, only
234 units of BRV were sold as compared to 550 units last month. City/Civic sales
also saw a dip to 2,053 units sold as compared to 2,603 units sold in Mar’21. On a
YoY basis, cumulative sales stood at 23,985 units during 10MFY21, a rise of 71%.
 Pak Suzuki Motor Company (PSMC) sold 8,606 units in Apr’21, down 15% MoM.
Bolan, Ravi, and outgoing Swift emerged as a laggard for the company
cumulatively causing sales to slow down by 30% MoM. On a cumulative basis, Alto,
WagonR, and Cultus reported a strong increase in sales. As a result, PSMC
managed to report a 28% decline in sales for 10MFY21.
 Hyundai Tucson came off by 18% MoM to 503 units sold. The launch of Elantra in
Mar’21 is already seeing a strong run-up with 280 units sold in its second month
of launch. Moreover, Porter depicted an increase of 77% MoM.
 Tractor sales have recorded a dip of 19% MoM led by Al-Ghazi Tractors reporting
sales of 1,287 units. On the other hand, Millat Tractors saw a sale of 3,214 units
for the month.
 The incoming model launches across various segments and a low interest rate
environment is expected to keep activity in the automotive sector healthy. The
expected launch of Honda City this month and reveal of Hilux and Fortuner facelift
may help the sector record its best quarter in a while. We have an Outperform
stance on the sector as volumes are expected to depict sustainability after
thoroughly recovering from the peak-Covid lull. We do not see competition to
displace the volumetric outlook of the Japanese 3. We prefer INDU, PSMC, and
HCAR.

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 Manufacturer-wise breakup

Apr-21 Mar-21 MoM Apr-20 YoY 10MFY21 YoY

Passenger Cars, SUVs and LCVs
Swift 181 355 -49% 0 nm 2,077 34%
Cultus 1,312 1,637 -20% 0 nm 13,420 27%
WagonR 1,447 1,259 15% 4 nm 10,314 68%
Alto 4,091 4,745 -14% 0 nm 33,129 19%
Bolan 747 1,017 -27% 0 nm 7,245 62%
Ravi 828 1,148 -28% 0 nm 8,434 42%
PSMC 8,606 10,161 -15% 0 nm 74,619 28%
Corolla 1,724 2,126 -19% 0 nm 14,979 -29%
Yaris 2,600 3,317 -22% 0 nm 24,320 nm
Fortuner 364 508 -28% 0 nm 2,813 163%
Hilux 667 744 -10% 0 nm 5,913 83%
INDU 5,355 6,695 -20% 0 nm 48,025 90%
City/Civic 2,053 2,603 -21% 0 nm 20,869 74%
BR-V 234 550 -57% 0 nm 3,116 51%
HCAR 2,287 3,153 -27% 0 nm 23,985 71%
JAC 59 61 -3% 6 nm 547 61%
D-Max 30 20 50% 11 173% 226 -49%
GHNL 89 81 10% 17 424% 773 -2%
Porter 113 64 77% 22 414% 961 307%
Elantra 280 46 509% 0 nm 326 nm
Tucson 503 613 -18% 0 nm 3,262 nm
Hyundai 896 723 24% 22 nm 4,223 nm
Total 17,233 20,813 -17% 39 nm 151,625 54%

Farm Tractors

AGTL 1,287 2,012 -36% 1,029 25% 12,286 26%

MTL 3,214 3,519 -9% 1,006 219% 29,141 87%
Total 4,501 5,531 -19% 2,049 120% 41,456 62%

HCV

Hino 55 80 -31% 14 293% 745 -40%

Master 110 151 -27% 0 nm 1,026 93%
GHNI (Isuzu) 164 325 -50% 25 556% 1,590 231%
Total 333 575 -42% 39 754% 3,547 7%

Source: PAMA, KASB Research

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