Karachi, December 11, 2020: Car sales, as reported by PAMA, increased by 48 percent YoY in Nov-2020 to 14,454 units. The same, including Lucky Motor Corporation (KIA, non-member of PAMA), is up by 63 percent YoY.
Indus Motor (INDU), Honda Car (HCAR) and Pak Suzuki Motor Company (PSMC) registered sales increases of 87 percent YoY, 72 percent YoY and 16 percent YoY respectively. This is the first YoY increase in FY21 for PSMC as some of the production issues have been resolved.
Car sales also increased by 3 percent MoM in Nov-2020. The increase was driven by PSMC’s increase of 12 percent MoM as Cultus sales grew by 86 percent MoM followed by Ravi sales improving by 255 percent MoM. HCAR’s sales were same as last month. INDU’s volumes declined by 10 percent MoM.
New entrants into Pak Auto space Hyundai Nishat sold 472 units (+63 percent MoM) in Nov-2020, while Lucky Motor sold around ~1,500 units, as per our channel checks.
Atlas Honda (ATLH) recorded motorbike sales of 108,005 units in Nov-2020, up 14 percent YoY. In 5MFY21, sales have increased by 19 percent YoY.
Tractor sales in Nov-2020 are up 77 percent YoY, while decreasing by 28 percent MoM. Millat Tractors (MTL) recorded increase of 67 percent YoY (-22 percent MoM) while Al Ghazi Tractors (AGTL) sales increased by 116 percent YoY (-39 percent MoM), respectively. The expected demand for cars to grow stronger owing to low interest rates environment and pickup in economic activity. The Over-Weight on Pak Automobiles with Buy ratings on INDU, HCAR and MTL.
