Business

KARACHI (Web Desk) – Sales of domestically assembled vehicles increased by 12% to 257,752 units in 2015-16  mainly due to the easy availability and lower cost of auto financing for the most part of the last fiscal year, it has been reported.

A report put forth by the Pakistan Automotive Manufacturers Association (PAMA) confirms that the automotive industry swelled in fiscal year 2016.

According to a research note issued by Taurus Securities on Wednesday, car sales grew 21% in 2015-16 to 216,568 units. The highest contribution in swell was by Pak Suzuki.

Moreover, within the cars segment, the company’s sales increased by 28% over the year to 126,674 units. Its vehicles, Ravi and Bolan, recorded sales growth of 31% and 27%, respectively mostly due to Punjab government’s Apna Rozgar Taxi Scheme.

Related: Car sales jumped by 38% to 121,934 units in 8 months

As for Indus Motors and Honda Cars, their sales grew by 12% and 9% to 63,977 and 25,726 units, respectively, during the last fiscal year, Express Tribune reported.

Sales of heavy commercial vehicles (HCV) increased 40% to 6,566 units in the last fiscal year, data shows.

In contrast, sales of tractors dropped 26% on an annual basis to 34,618 units due to seasonal down cycle, low farmer income and anticipated subsidy schemes, Taurus Securities said.

“In 2016-17, we expect auto sales would remain close to current levels despite completion of Apna Rozgar Taxi Scheme. We anticipate higher contribution from Honda due to its new Civic model launch and higher tractor sales,” report said.

Observers are of the view that heavy commercial vehicles will add more to the industry due to China-Pakistan Economic Corridor.