INSIGHT

March11,2015

SectorOutlook&PAMAData
Sales of Pakistan listed carmakers, during Feb15, have increased by 36% YoY to
17,305units.Theimprovementcamefromthesizeable44%surgeinPSMCvolumesin
additionto45%riseinINDUsales.Onmonthonmonthbasis,autovolumesdeclined
by2%duetoabnormallyhighersalesinJan15asbuyersusuallypreferNewYearcar
model.In8MFY15,saleshaveincreasedby17%YoYto102,140unitsonthebackof
52%and8%volumetricincreaseinINDUandPSMC,respectively.Ontheotherhand,
HCARsalesfellby5%duetolowerCivicsalesatthestartofthefiscalyear.
We expect auto volumes to remain strong in next few months due to taxi sales by
PSMC,heavybuildupofINDUsorderbookandrecoveringHCARsales.ForFY15,we
expectvolumestogrowby23%to167kunits.
Tractorsales,ontheotherside,hasincreasedby150%YoYto4,015vehicleswiththe
helpof130%and176%highersalesbyMTLandAGTL,respectively.During8MFY15,
overallcountrytractorsalesincreasedby34%to28,412tractors.

Cars,Jeeps&PickUpsSales
Feb15

YoY

Jan15

MoM

PSMC

49,522

53,669

8% 6,941

9,981

44% 7,987

25%

10,000

INDU

22,676

34,375

52% 3,505

5,077

45% 6,415

21%

7,500

HCAR

14,821

14,041

5% 2,232

2,242

0% 3,221

30%

DFML
582 55
91% 63
Total
87,601 102,140
17% 12,741
Source: TSLResearchandPAMAData

5
17,305

92% 2
36% 17,625

150%
2%

Feb14

Feb15

YoY

Jan15

7,763 10,526

36%

545 1,503

176% 1,310

15%

MTL

12,722 17,400
687
486

37%

1,060 2,435
3 77

130% 2,154

13%

2467% 76

1%

150% 3,540

13%

Total
21,172 28,412
Source: TSLResearchandPAMAData

29%

34% 1,608

HCAR

5,000
2,500

4,015

Feb'15

Dec'14

Oct'14

MoM

AGTL
OrientIMT

TSLResearch

YoY

INDU

TractorsSales
8MFY14 8MFY15

PSMC

Aug'14

Feb14

June'14

YoY

Aprl'14

8MFY14 8MFY15

MonthlyAuto Sales

Feb'14

Automobile&Tractors

Feb15autocarsalesincreasedby36%YoYto17,305

PSMC:HigherBolanandRavisalespickedFeb15volumesup25%MoM
SalesofPakSuzukiincreasedby25%MoMinFeb15to9,981units,mainlybecauseof102%and
90% higher Ravi pickup and Bolan sales to 2,632 units and 2,439 units, respectively. To recall,
PSMCsalestoBankofPunjabunderApnaRozgarSchemehasbeenstartedunderwhichtotal50k
unitsofBolan&Raviwillbegiventoapplicants.
Ontheotherhand,Mehransalesdroppedby16%to2,921unitsmainlybecauseofhigherbaseat
thestartofNewYear.ForFY15,weexpect18%volumesgrowthforPSMCto92kunitswhilecalen
daryear2015volumesgrowthcouldbeinthetuneof50%.

INDU:Volumesnormalizedto6,415unitsinFeb15,down21%MoM

SyedSufyanSubhani

sufyan@taurus.com.pk
InFeb15,salesofIndusmotorhaveplummetedby21%MoM5,077units,mainlyblamedto24% Direct:+922135216403
lowerCorollasalesto4,449units.WeattributethedroptothehighersalesinJan15duetoNew
Continuedonpage2
DISCLAIMER:Theaboveinformationandadviceisgiveningoodfaith,withoutanylegalresponsibility.TaurusSecuritiesLimitedorindividualscon
nectedwithitmayhaveusedresearchmaterialbeforepublicationandmayhavepositionsinormaybeinterestedinthesecuritiesmentionedherein.

TSLResearch
Yearphenomenon.However,Hiluxvolumesincreasedby20%to576SUVs.Onyearonyearbasis,
INDUtotalsalesareup45%inFeb15.
During8MFY15,INDUvolumes increasedby52%to34,375cars,thanksto58%highercompanys
flagshipCorollasales.ForFY15,weexpectINDUvolumestoincreaseby60%to54kunits.

Tractors:LowerGSTpickedsalesupby34%in8MFY15
Inlinewiththetrendwitnessedincarsales,tractorssalesinthecountry increasedby34%during
8MFY15 to 28,412 units. However, we attribute the increase to GST reduction on Tractors from
16%to10%inFY15FederalBudgetandstartofwinterseasoncropsinadditiontothecommence
mentofagrilendingbyZTBL.DuringFeb15,tractorssalesareup13%to4,015units,withinwhich
MTLsalesincreasedby13%to2,435whileAGTLwitnessedvolumesgrowthof15%to1,503units.

TaurusresearchisavailableonBloombergunderTAUR