KARACHI: According to the data released by Pakistan Automotive Manufacturers Association (PAMA) for local auto sales in April 2008, the sales of cars and light commercial vehicles for the first 10 months (Jul-Apr) of FY08 stood at 153,846 units, showing a decline of 5 per cent when compared to 162,462 units sold in the same period of FY07.

The 13 per cent month-on-month improvement witnessed in Mar 2008 (over Feb 2008) was not sustained in April 2008 as the industry saw a decline of 2 per cent in auto sales in April.

This decline in April is primarily due to the product price increase by almost all local auto assemblers. The prices have been revised upward to pass on the impact of rising costs to the end consumers. Moreover, uncertainty, both on the political and economic front, has forced consumers to refrain from spending on luxury items. Even the extension of 2.5 per cent withholding tax (WHT) exemption till Jun 30, 2008 was not able to support the declining sales.

Looking at the car sales alone, the sales in Jul-Apr FY08 fell by 8 per cent to 120,859 units versus 131,962 units in the corresponding period of last year. The share break up for Cars and LCVs in auto sales is 79 per cent and 21 per cent, respectively.

All assemblers depicted negative growth during the first 10 months of the FY08. Pak Suzuki and Indus Motor performed relatively better as their sales declined by only 2 per cent year to year. Other assemblers, Dewan Farooque and Honda Atlas posted a negative growth of 24 per cent and 22 per cent, respectively.

Glancing at the month to month figures, Pak Suzuki outperformed its peers by posting 0 per cent flat growth against the industry’s growth of a negative 2 per cent. Sales of all its products like Cultus, Bolan and Ravi recovered considerably, stated Bilal Hameed, an analyst at JS Global Capital.