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×LCV sales grow 6.7 times faster than passenger cars



LCV sales grow 6.7 times faster than passenger cars
In the first quarter of 2016-17, the growth of sales of light commercial vehicles LCVs, jeeps and vans has increased 44% as compared to the same period of last year.

Apart from the Apna Rozgar Scheme of Punjab Government, the first quarter of 2016-17 from July to September saw the sales of LCVs, vans and jeeps to 1585 as compared to sale of 1101 units in the same time period last year, as told by State Bank of Pakistan SBP in its first quarterly report.
However, the overall units sold in this category are very less but the percentage increased remained 6.7 times higher which is more than sales of passenger cars in the quarter that remained 6.5%. According to analysts, growing trade activities and low base effect are the reasons of this increase.

JS Research analyst Ahmed Lakhani said that increase in trade and commercial activities along with start of China Pakistan Economic Corridor CPEC are the main reasons behind this increase in sales of LCVs. Lakhani added that the initiative of government to finance commercial vehicles is another reason as now people can buy vehicles through banks also.
The latest data shows that the total car sales in first five months of fiscal year 2016-17 were 13% less annually with 81,491 units. But there is an increase of 12% annually if the sales under Punjab taxi scheme are excluded. So despite the end of Punjab taxi scheme, the sales of cars will remain increasing in the FY17.
In the current fiscal year, total vehicle sales is expected to reach 270,000 units as 5,000 imported cars will also arrive per month.
Honda Atlas Cars had 49% increase in annual sale as they sold 14,155 units in the first five months of 2016-17.
Indus Motors has sold 23,783 units in July to November 2016 that ped its sales of 8%.
In the first five months of this fiscal year, Pak Suzuki Motor Company saw the decrease of 25% annual sales with selling of 43,553 units in the first five months. The reason behind these lower sales was the end of taxi scheme that was based mainly on Bolan and Ravi variants of Suzuki.

Apart from the Apna Rozgar Scheme of Punjab Government, the first quarter of 2016-17 from July to September saw the sales of LCVs, vans and jeeps to 1585 as compared to sale of 1101 units in the same time period last year, as told by State Bank of Pakistan SBP in its first quarterly report.
However, the overall units sold in this category are very less but the percentage increased remained 6.7 times higher which is more than sales of passenger cars in the quarter that remained 6.5%. According to analysts, growing trade activities and low base effect are the reasons of this increase.

JS Research analyst Ahmed Lakhani said that increase in trade and commercial activities along with start of China Pakistan Economic Corridor CPEC are the main reasons behind this increase in sales of LCVs. Lakhani added that the initiative of government to finance commercial vehicles is another reason as now people can buy vehicles through banks also.
The latest data shows that the total car sales in first five months of fiscal year 2016-17 were 13% less annually with 81,491 units. But there is an increase of 12% annually if the sales under Punjab taxi scheme are excluded. So despite the end of Punjab taxi scheme, the sales of cars will remain increasing in the FY17.
In the current fiscal year, total vehicle sales is expected to reach 270,000 units as 5,000 imported cars will also arrive per month.
Honda Atlas Cars had 49% increase in annual sale as they sold 14,155 units in the first five months of 2016-17.
Indus Motors has sold 23,783 units in July to November 2016 that ped its sales of 8%.
In the first five months of this fiscal year, Pak Suzuki Motor Company saw the decrease of 25% annual sales with selling of 43,553 units in the first five months. The reason behind these lower sales was the end of taxi scheme that was based mainly on Bolan and Ravi variants of Suzuki.
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