Analyst:

Muhammad Farhan Malik

muhammad.farhan@atlascapital.com.pk
(+92-21)-35376125
Morning Pulse Jan 11, 2011
Market Snapshot
Index Chg %
KSE 30 11932.5 -28.88 -0.24
Automotive Sector: December not Market share KSE 100 12306.70 -82.34 -0.66
KSE ALL 8539.34 -52.89 -0.62
a holy month… 56% PSMC
INDU Monthly car sales trend
42% 17,000
Synopsis… HCAR FY09 FY10 FY11
14,300
The Pakistan Automotive Manufacturers Association 28%
DFML 11,600
Pakistan Research

(PAMA) has released production and sales data for the 8,900
14%
month of Dec’10. As per the data, total auto sales 6,200

volume in Dec’ 10 witnessed decline of 23.47% to 8,909 0% 3,500

Jan
Nov
Jul

Sep

Mar

May
units from 11,641 units in the previous month. The Nov-10 Dec-10 6MFY10 6MFY11
decline in sales volume was mainly due to 1) Govt 12M INDU's Relative Performance
Source: PAMA, Atlas research 147% INDU KSE-100
decision to allow import of used cars by enhancing age
limit from 3-years to 5-years (Govt. of Pakistan has share, Pak Suzuki (PSMC) is enjoying market leader’s 123%

however withdrawal this policy) and 2) consumers’ position with 56.61% market share in 6MFY11 while 99%
preference for registration of vehicles in new year. On Honda Atlas Cars (HCAR) has the lowest market share
75%
the contrary, total auto sales volume rose by 10.93% to of 10.16%. Moreover, Dewan Motor (DFML) market

Aug-10
Apr-10

Oct-10
Dec-09

Jan-10

Feb-10

Jun-10

Sep-10

Dec-10
May-10
67,693 units (average per month sale of 11,282 units) in presence gets completely vanished as it has lost its
6MFY11 as against 61,023 units (average per month entire market share with suspension of its operations.
12M PSMC's Relative Performance
sales of 10,171) recorded in the same period of last INDU : On M-o-M basis, Corolla showed a substantial 138% PSMC KSE-100
year. decline of 45.69% to 1,568 units (average per month 117%
Company wise sales of 3,120 units in 6MFY11) in Dec’ 10 from 2,887 units in
96%
Scrips Nov-10 Dec-10 % Chg 6MFY10 6MFY11 % Chg Nov’ 10. Similarly in Dec’ 10 sales volume of Cuore
PSMC 6,813 6,228 -9% 33,675 38,320 14% witnessed biggest decline of 58.81% M-o-M basis. 75%

Apr-10

Aug-10

Oct-10
Dec-09

Jan-10

Feb-10

Jun-10

Dec-10
Sep-10
May-10
INDU 3,753 2,033 -46% 20,902 22,408 7% HCAR : On M-o-M basis, Civic and City’s sales
HCAR 1,075 628 -42% 5,671 6,875 21% volume declined by 23.54% and 54.37%%
DFML 0 20 NA 775 90 -88% respectively in Dec’ 10.
Total 11,641 8,909 -23% 61,023 67,693 11% PSMC : On M-o-M basis, all products of the company
Source: PAMA in car segments witnessed a decline except Mehran. Atlas Capital Markets (Pvt.) Ltd
Highest decline of 33.33% and 32.89% in Dec’ 10
INDU – Leading with dropped sales… B-209, Park Towers, Clifton, Karachi
were observed in Liana and Swift segment sales Equity Research: Equity Sales:
The highest decline in Dec’ 10 was seen in Indus Motor Tel: 92 (21) 5376125 Tel: 92 (21) 5368261-8
volume respectively. Other than the car segments,
(INDU) as its sales volume posted decline of 45.83% Fax: 92 (21) 5376126 Fax: 92 (21) 5376122
Suzuki Ravi showed a meager increase of 1.42%
followed by Honda Car (HCAR) whose sales volume Money Market: Corporate Finance:
(M-o-M) in Dec’ 10. Tel: 92 (21) 5376128 Tel: 92 (21) 5824991
decline by 41.58% on M-o-M basis. In terms of market Fax: 92 (21) 5376129 Fax: 92 (21) 5376122

Disclaimer: All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time Financial Products Distribution:
of publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, Atlas Capital Markets (Pvt.) Tel: 92 (21) 5376125
Limited accepts no liability whatsoever for any loss or damage resulting from errors, inaccuracies or omissions affecting any part of the publication. All Fax: 92 (21) 5376126
information is provided without warranty and Atlas Capital Markets (Pvt.) Limited makes no representation of warranty of any kind as to the accuracy or Atlas Research is available on Bloomberg and
completeness of any information hereto contained. Thomson Financial
 ATLAS CAPITAL MARKETS (PVT.) LIMITED Morning Pulse

Product wise…
Car : On M-o-M basis, car sales volume declined by
27.42% to 7,446 units (average per month of 9,941
units in 6MFY11) in the month of Dec’ 10. A biggest
decline was observed in 1300cc cars as it sales
volume declined by 43.65% (M-o-M) in Dec’ 10.
Truck and buses: On M-o-M basis, truck and buses
Pakistan Research

sales volume showed a handsome growth of

25.35% to 267 units in Dec’ 10.
Pick-up (Van): Van sales almost remained flat as it
sales volume reached to 1,497 in Dec’ 10 while
1,506 units were sold in previous month of FY11.
Tractor: Tractors sales volume witnessed a
mammoth growth of 70.23% (M-o-M) to 8,047 units
in the month of Dec’ 10. The highest sales volume
enjoyed the Millat Tractor (MTL) as it sales volume
increase by 134.93% (Y-o-Y) to 5,293 units.

Out look and recommendation…

We believe sales volume of auto would experience a
jump owing to customers’ preference in to register in
New Year. In addition to this, Government has reverted
back the decision to allow import of older cars upto five
years age which would further put a positive impact on
sales volume going forward.