Karachi, June 15, 2021 (PPI-OT): Auto volumes surge by 247% YoY in May

Auto volumes posted a strong recovery in May-2021, increasing by 3x YoY (247% YoY) to 15,696 units. Cumulatively, volumes rose by 62% YoY during 11MFY21.

Pak Suzuki (PSMC) witnessed volumes rising by 131% YoY to 8,307 units, with Alto accounting for 41% of the company’s unit sales.

Indus Motor Company’s (INDU) volumes jumped by 755% YoY to 4,676 units as all its variants posted strong recovery during the month. Similarly, Honda Atlas Cars (HCAR) experienced a six-fold increase in volumes (2,001 units) during the month.

Other categories of the sector, such as tractors, HCVs, bikes and 3-wheelers also experienced resurgence in volumes.

In the Federal Budget FY22 announcement, FED was removed (previously 2.5%) and sales tax cut from 17% to 12.5% on cars up to 850cc. This mainly benefits Suzuki Alto among the listed players. Provided the company passes on the tax relief to customers by way of reduced prices, we expect the small car segment to spearhead growth in auto volumes in FY22.