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Offline Loto or Photo

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Re: Auto Sector
« Reply #539 on: July 11, 2015, 03:16:55 AM »
Fiscal year 2014-15: Growth of local car sales soars to five-year high
Amount¬s to 179,953 units compar¬ed to 136,888 units in 2014.

KARACHI: Local car sales in the country have registered a growth of 31% year-on-year – highest in the last five years – and touched 179,953 units in fiscal year 2015 compared to 136,888 units in the same period previous year.

This improvement was better than the 1% growth in fiscal year 2014 and surpassed the 5-year (FY11-15) compound annual growth rate (CAGR) of 5.3%.

Local vehicle sales (including light commercial vehicles (LCVs), vans and jeeps) increased due to Toyota Corolla’s new model, taxi scheme by Punjab government, rising consumer sector dynamics and an increase in car financing due to the 42-year low interest rate in the country, Topline Securities reported on Friday.
It is important to note that imports of used cars are still hovering around 25,000-30,000 units per annum. The imports make around 15% of car sales in Pakistan.
In fiscal year 2016, Topline estimates that the locally assembled car sales will grow by 13% to 203,653 units.

Tractor segment also posted a healthy growth of 39% year-on-year during the outgoing fiscal year 2015 to reach 46,800 units, primarily due to reduction in General Sales Tax (GST) from 16% to 10%, announced in Federal Budget FY15. This compares favorably with -34% growth in FY14 and 5-year (FY11-15) CAGR of -9.3%.

Subsidy schemes that include 25,000 tractors by Punjab government and 29,000 tractors by Sindh government will further boost growth momentum in tractors volumes, the report said. The volumetric growth coupled with weak yen against the dollar will have a positive impact on the profitability of the auto sector.

Pak Suzuki Motors
During fiscal year 2015, Pak Suzuki sales rose to 98,879 units, up 27% year-on-year because of the invoicing of cabs under the ‘Taxi scheme’. “We are expecting that PSMC will sell around 30,000-35,000 units under the taxi scheme in fiscal year 2016 and order of 50,000 units will be completed in the first half (Jul-Dec) of 2017,” the report said, adding that the volumes of the company may grow by 24% in fiscal year 2016 to reach at 122,617 units.

Indus Motor
Indus Motors achieved its highest ever sales since the inception of the company by selling 56,943 units in fiscal year 2015, up 67% year on year. It is important to note that the company’s annual production capacity is 54,800 units so company achieved these levels through debottlenecking and working on alternate Saturdays.

This phenomenal increase is due to Toyota’s new Corolla model, which is still sold out for the next three to four months, according to sources in the industry, the report said.

Honda Cars
The sales of Honda Atlas Cars have remained stable at 23,622 units in fiscal year 2015 compared to 23,674 units last year. It is important to note that the company maintained its sales growth despite the new model of Toyota Corolla launched by its competitor Indus Motors. This indicates that overall market size of Pakistan automobile sector is growing.

Published in The Express Tribune, July 11th, 2015.

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Re: Auto Sector
« Reply #539 on: July 11, 2015, 03:16:55 AM »

Offline MZ

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Re: Auto Sector
« Reply #540 on: July 13, 2015, 07:15:58 PM »
Automobile Assembler: Auto sales grow by 31% YoY in FY15; Latest numbers from PAMA for Jun-15 show a MoM decline across all segments, which is typical as sales begin to normalize midway into the calendar year. Looking at FY15 numbers though is encouraging, as sales of Total Cars and LCVs increased 31% YoY, due to the 1300cc & above and LCV’s segments, which posted YoY growths of 35% and 59%, respectively. This was mainly due to the growth in Corolla sales (new model launch) and the Punjab government’s taxi scheme (Bolan and Ravi, 25,000 units each).

Sales in FY16 to hold steady, we expect, with marginal upticks across segments: For FY16, we expect sales to hold firm across all major categories, with improvements in LCVs, 1000cc and below 1000cc segments, due to continuation of the Taxi scheme (LCVs) and the impact of auto financing in low policy rate scenario (lowest in 4 decades). Moreover, auto financing as per SBP data, is at its highest in Apr-15 (at PKR 79bn), since May-09, a high of nearly six years, with a continuously increasing MoM trend since Jul-12 (PKR 45bn).

PSMC: Recorded impressive 27% YoY growth, boosted by Taxi Scheme: PSMC showed robust YoY growth of 27%, spurred by Bolan & Ravi variants, growing by 67% & 84%, respectively, as both were recipients of the taxi scheme. Also, Wagon-R sales more than tripled in FY15, however that was mainly due to launch in Apr-14. Nevertheless, with the price cut in Jan-15, sales recorded a healthy uptick, slowing only in Jun-15 (21% MoM). We see Mehran sales increasing in FY16, due to auto financing factor, with flattish sales of Cultus and Swift, with the Cultus being eventually replaced by the Celerio in 2016- 17 (as per channel checks) to prop up sales in the 1000cc category.

AHL

Offline MZ

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Re: Auto Sector
« Reply #541 on: July 13, 2015, 07:16:34 PM »
Autos: June sales up 47% YoY, GHNI on top Auto sales in June 2015 clocked in 47% YoY higher at 17.8k units, led by (1) 264% YoY higher unit sales by Indus Motor Company (INDU) on the back of strong 386% YoY growth in Corolla sales and (2) concessionary cab scheme driven 27% YoY growth in Pak Suzuki Motor Company (PSMC) unit sales. Excluding the concessionary cab scheme, we estimate June 2015 auto sales clocked in at around +22% YoY with PSMC sales declining by 12% YoY. On a MoM basis, auto sales dropped by 8% which we believe is due to slowdown in cab scheme sales (approx. -23% MoM) as PSMC sales declined by 15% MoM.

Ghandhara Industries (GHNI) stood out amongst others with sales in June 2015 surging by 101% YoY and 108% MoM. As a result, overall auto sales registered a 7-year high, clocking in at 179.95k units in FY15 vis-à-vis 136.89k units in FY14 (+31% YoY), where exconcessionary cab scheme growth is estimated at ~20% YoY.

Reiterate Market Weight as positives mostly priced in We reiterate ‘Market-Weight’ stance on the sector. We believe the sector is likely to gain from the upcoming AIDP-2 policy; however, the timing of the announcement remains unclear. We keep our ‘Hold’ call intact on both PSMC and INDU.

JS

Offline MZ

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Re: Auto Sector
« Reply #542 on: July 13, 2015, 07:17:08 PM »
As per the recent numbers released by the Pakistan Automobile Manufacturers Association (PAMA), the automobile industry sales stood at 17,741 units in Jun’15 as compared to 11,913 units in Jun’14, depicting a growth of 49%YoY. On a MoM basis, industry numbers declined by 8% primarily due to a slowdown in PSMC’s sales. On a quarterly basis, the industry sales clocked in at 56,247 units in 4QFY15, up 2%MoM/55%YoY. INDU remained the prime performer during the month with a growth of 3.6xYoY led by robust sales of Corolla, up by whopping 5.0xYoY. We believe, the industry sales figures are likely to normalize in FY16 in the wake of lower sales from Corrolla. That said, all time lower DR coupled with improving consumer income will potentially boost auto financing and thus will strengthen industry sales. Furthermore, the AIDP?II yet again seems around the corner, which apparently favors the profitability of the existing players in the short term however; it may pose some challenges in terms of increased competition from new entrants. At current levels, we reiterate our preference for AGTL with a target price of PKR596/sh, offering a total return of 32%from last close.

INDU; euphoria fading away: The company’s sales for the month of Jun’15 clocked in at 5,458 units as opposed to 1,499 units in the same month last year, up 3.64xYoY. However, on a MoM basis numbers declined 0.9% due to normalizing sales of Corolla where we expect numbers to average at current levels (~4,700) for FY16. Hilux showed an impressive move with a growth of 58%MoM/31%aYoY, primarily due to deliverables of fleet orders. On 4QFY15 quarterly basis, numbers took a dip on a QoQ basis by ~2.5% however, were up 131% on a YoY basis.

PSMC; seasonal adjustment: The sales numbers for PSMC failed to impress in Jun’15 which clocked in at 9,795 units as against 11,477 in the preceding month, representing a decline of 15%MoM. The decline was primarily on the back of deferred buying as consumers expected a reduction in advance taxation under the budget, we believe. The numbers however, remained firm on 4QFY15 basis with a 7%QoQ/46%YoY growth in sales mainly backed by the Apna Rogar Scheme.

BMA

Offline DK

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Re: Auto Sector
« Reply #543 on: August 07, 2015, 11:51:27 AM »
seniors plz check, there were links previously that in current budget gov has reduced import duties of cars, cuz local assemblers were not making cars as per international standards.
now there is a new on Pak wheels that so called reduction in duties was just a hoax and no such thing has happened, PPL were falsely lead to believe that duties have been lowered and many have already import cars which are standing at port to be cleared with old schedule.

Offline Loto or Photo

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Re: Auto Sector
« Reply #544 on: August 07, 2015, 12:01:06 PM »
Govt likely to continue allowing import of used cars

ECC to approv¬e new policy in upcomi¬ng meetin¬g, offer incent¬ives to new player¬s
The government has not shown any intention to give in to the lobbying of key players in the automobile industry and is planning to continue allowing the import of used cars in the proposed new policy in an attempt to break the monopoly of existing players.

The industry had pressed the government to ban the import of used cars, but the demand was turned down, say officials.

The Economic Coordination Committee (ECC) is expected to approve the new policy in its upcoming meeting.
Talking to The Express Tribune, Privatisation Commission Chairman Mohammad Zubair, who played a key role in drafting the policy, said the document would be tabled before the ECC and it would carry incentives for the new investors to create a level playing field.

He stressed that the country would continue to import used cars as millions of people were associated directly or indirectly with this trade and “we do not want to take any step that could hurt employment.”
The ECC, in its meeting on October 12, 2014, had decided to offer tariff protection for five to seven years to new entrants to the auto industry in order to break the monopoly of existing players, who were still counting on obsolete technology and selling vehicles at high prices.

The committee noticed that despite getting incentives from the government, the car assemblers were demanding high prices from the consumers.

The assemblers were also earning hefty profits on the advance deposited by consumers before the delivery of cars. The ECC was told that the automobile industry had not been showing any growth for the past many years and had even recorded negative growth notwithstanding the fact that it had got a host of incentives.
On the ECC’s directive, the Ministry of Industries and Production and the Engineering Development Board had started work on a policy that would offer incentives to the new players, create competition and lead to a decline in vehicle prices.

According to officials aware of the development, a committee constituted by the ECC had reviewed different proposals for giving the incentives.

It considered imposing reduced import duties at 10%, 15% and 20% on localised and non-localised parts of completely knocked down (CKD) kits as an incentive to encourage investment and competition. Later, an agreement was reached for 10% duty and a final decision will be taken by the ECC. This protection is proposed to be given to the new entrants for five years.

At present, the import duty on non-localised parts, which are not manufactured in the country, is 32.5% and on localised parts it is 50%.

Currently, the vendors or vehicle assemblers manufacturing spare parts themselves are allowed import of raw material, sub-components, components and sub-assemblies at 0, 5, 10 and 20% duty respectively.
However, the government is planning to bring all these categories under a single title and introduce a uniform rate of duty. This will facilitate the industry and give a boost to its operations, officials say.
It has been noticed that not a single car manufacturer has been able to complete the deletion programme even after extension in the deadline. The government is expected to set up a technology support fund, with the help of industry players, which will help bring new technology in the sector.

The new policy also proposes that Pakistan should become a member of the UNECE World Forum for Harmonisation of Vehicle Regulations in order to promote vehicle safety. The forum allows the introduction of innovative vehicle technologies with a continuous improvement in vehicle safety.

It calls for reducing environmental pollution and energy consumption as well as improving anti-theft capabilities.

Published in The Express Tribune, August 7th,  2015.


Offline RazaNaqvi

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Re: Auto Sector
« Reply #545 on: August 07, 2015, 12:01:44 PM »
seniors plz check, there were links previously that in current budget gov has reduced import duties of cars, cuz local assemblers were not making cars as per international standards.
now there is a new on Pak wheels that so called reduction in duties was just a hoax and no such thing has happened, PPL were falsely lead to believe that duties have been lowered and many have already import cars which are standing at port to be cleared with old schedule.

what does it mean regarding psmc

Offline dr.muhammad zia

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Re: Auto Sector
« Reply #546 on: August 07, 2015, 12:17:52 PM »
seniors plz check, there were links previously that in current budget gov has reduced import duties of cars, cuz local assemblers were not making cars as per international standards.
now there is a new on Pak wheels that so called reduction in duties was just a hoax and no such thing has happened, PPL were falsely lead to believe that duties have been lowered and many have already import cars which are standing at port to be cleared with old schedule.

what does it mean regarding psmc

panic kis baat ki hai?
I'm friends with the monster that's under my bed
Get along with the voices inside of my head
You're trying to save me, stop holding your breath
And you think I'm crazy, yeah, you think I'm crazy,WELL THATS NOT FAIR

Offline DK

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Re: Auto Sector
« Reply #547 on: August 07, 2015, 12:56:09 PM »
seniors plz check, there were links previously that in current budget gov has reduced import duties of cars, cuz local assemblers were not making cars as per international standards.
now there is a new on Pak wheels that so called reduction in duties was just a hoax and no such thing has happened, PPL were falsely lead to believe that duties have been lowered and many have already import cars which are standing at port to be cleared with old schedule.

what does it mean regarding psmc

panic kis baat ki hai?
not panic now for psmc..... now psmc lodian dal rahi hai..... reduction in imported vehicle duties where told in current budget cuz local assembler were making cars like toilet paper.... politicians need tanks..... so import duties were significantly reduced and would stay reduced until local assembler make their cars upto international standard...... yesterday someone told me bhai koi kami nahi howi.... agar hoti mein sab se pehlay meinay import karni thi car..... i checked the custom tarriff there is no change there.

Offline DK

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Re: Auto Sector
« Reply #548 on: August 07, 2015, 05:05:19 PM »
seniors plz check, there were links previously that in current budget gov has reduced import duties of cars, cuz local assemblers were not making cars as per international standards.
now there is a new on Pak wheels that so called reduction in duties was just a hoax and no such thing has happened, PPL were falsely lead to believe that duties have been lowered and many have already import cars which are standing at port to be cleared with old schedule.

what does it mean regarding psmc

panic kis baat ki hai?
not panic now for psmc..... now psmc lodian dal rahi hai..... reduction in imported vehicle duties where told in current budget cuz local assembler were making cars like toilet paper.... politicians need tanks..... so import duties were significantly reduced and would stay reduced until local assembler make their cars upto international standard...... yesterday someone told me bhai koi kami nahi howi.... agar hoti mein sab se pehlay meinay import karni thi car..... i checked the custom tarriff there is no change there.
its confirmed..... there have a massive bribe to government official to withdraw the duty reduction in current budget..... it was shown in news papers etc but officially .... mati dal di gai hai is pe...... local assemblers are gonna rock again. PSMC & HONDA monopoly won again.
verified by a custom official in karachi by paying him bribe of course.

Offline Cheetah

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Re: Auto Sector
« Reply #549 on: August 11, 2015, 09:29:29 PM »
July 2015 car sales
PSMC -3%MoM/119%YoY (9464 units)
INDU -22%MoM/285%YoY (4259 units)
HCAR -12%MoM/45%YoY (2181 units)
"The stock market is a device for transferring money from the impatient to the patient." - Warren Buffett

Offline MZ

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Re: Auto Sector
« Reply #550 on: August 12, 2015, 07:09:19 PM »
AKD Daily
 
Pakistan Autos: July’15 Review,

 
As per the recently released figures by Pakistan Automotive Manufacturers Association (PAMA), Pakistan's auto industry sales decreased by 11%MoM to 15.9k units in July'15 against 17.8k units sold in Jun'15. Major contribution in this decline came from INDU as the company sold 4.2k (-22%MoM) units followed by 2.18k (-12%MoM) units which HCAR managed to sell and 9.4k (-3%MoM) units by PSMC. In addition to cars, Tractor sales were recorded at 1.6k units, down by 59%MoM with MTL selling 743 units (-71%MoM) and 820 units (-40%MoM) sold by AGTL.
 
PSMC: The company recorded volumetric sales of 9,464 units in Jul'15, up by 119%YoY but down 3%MoM. All the variants excluding Swift (up by 15%MoM) & Mehran (up by 13%MoM) recorded substantial sales decline on a MoM basis. Specifically Ravi (2,502 units, -3%MoM), Bolan (2,546 units, -15%MoM) and Cultus (970 units, -11%MoM). At current levels, PSMC provides 13% upside to our Dec'15 target price of PkR542/share.
 
INDU: The company posted sales of 4,259 units in period under consideration, up 285%YoY but down 22%MoM. Sales volumes of Corolla were at 3,868 units up by 475%YoY. However, the company could not manage to sustain sales volumes of Fortuner (56 units, +4%MoM/-20%YoY) and Hilux (335 units, -51%MoM/8%YoY). At current levels, we have a Neutral stance on INDU with our Dec'15 target price of PkR1,264/share.
 
HCAR: Honda registered sales of 2,181 units up 45%YoY, lowered down by 12%MoM. The company sold 610 units of Civic (-11%MoM/-3%YoY) and 1,571 units of City (-13%MoM/+80%YoY).
 
Tractors: Industry sales recorded a decline of 41%YoY to post volumes of 1,634 units. Sales of MTL and AGTL in Jul'15 were 743 units (-56%YoY) and 820 units (-22%YoY), respectively.
 
Investment Perspective: FY16 has gotten off on the wrong foot for Pakistan's auto sector sales as Jul'15 figures are down 11%MoM. This marks the second consecutive month of decline from a high of 19.3k units sold in May'15. That said, marked improvement has been witnessed in 7MCY15 as cumulative industry car sales of 128.43k units are up 55%YoY vs. 82.5k units sold in 7MCY14. The sector's sales are still far from dry land however as the impact of floods still looms large. Floods in Pakistan over the course of past 5 years have proven to bring with themselves tough times for local Auto manufacturers. A historical analysis reveals that in the last 5 years local auto sales diminished by average ~15%QoQ in the Jul-Sep quarter. With all this yet to be priced in, we believe any negative surprises in the upcoming auto policy will bring some level of pessimism within the auto sector space and will provide investors with an opportunity to build-up fresh positions at dips.


Offline SBM

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Offline DK

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Re: Auto Sector
« Reply #552 on: August 14, 2015, 03:20:32 PM »

Offline shafi

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Re: Auto Sector
« Reply #553 on: August 14, 2015, 07:37:05 PM »
CSIL, KEL, PSO,

Offline DK

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Re: Auto Sector
« Reply #554 on: August 15, 2015, 02:08:19 AM »
http://tribune.com.pk/story/937744/proposed-automobile-policy-mkd-units-included-same-tax-incentives-for-new-and-old-players/
that was bound to happen since they withdrew on duty reduction on import of cars. BEEERRRIIIIBEEE IT

psmc ma entry banti ha es news k bad ??
Ab tu 150% entry banti hai.......the way they bribed to keep their monopoly.

Offline Ali135

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Re: Auto Sector
« Reply #556 on: August 22, 2015, 03:50:24 AM »
I hate waking up.

Offline Ali135

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Offline MZ

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