Tag: Pakistan Automotive Industry

  • Sazgar reports 3x increase in auto rickshaw sales

    Sazgar reports 3x increase in auto rickshaw sales

    Sazgar Engineering Works Limited, a prominent manufacturer of CNG 4-Stroke Auto Rickshaws and Automotive Wheel Rims, reported a significant increase in sales of its auto rickshaws for April 2024.

    According to a company filing with the Pakistan Stock Exchange (PSX), Sazgar sold 1,212 auto rickshaws in April 2024, almost three times the sales of the same month last year, when it sold 406 units.

    On the production front, Sazgar’s output of auto rickshaws also saw a substantial surge.

    The company produced 1,140 units in April 2024, a remarkable increase from the 244 units manufactured in April 2023. This 4.67-fold year-on-year increase showcases the company’s strong production capacity.

    However, a month-on-month comparison shows a slight decline in sales and production. Auto rickshaw sales fell by 9.62 per cent from March 2024, when the company sold 1,341 units. Similarly, production dropped by 26.5 per cent compared to the 1,551 units produced in March 2024.

    Despite this monthly fluctuation, the company’s four-wheel vehicle segment performed well in April 2024.

    Sazgar sold 551 four-wheel off-road and passenger vehicles, which is 9.11 per cent higher than the 505 units sold in March 2024. Production for four-wheel vehicles also increased, with 574 units produced in April, compared to 531 units in March.

    Overall, Sazgar Engineering Works Limited’s robust year-on-year growth in auto rickshaw sales and production demonstrates the company’s resilience and capacity for expansion, despite some month-to-month variability.

  • Declining sales: KIA slashes Sportage prices by up to Rs300,000

    Declining sales: KIA slashes Sportage prices by up to Rs300,000

    In a strategic move to stimulate demand, Lucky Motor Corporation, formerly known as Kia Lucky Motors Pakistan, has announced a significant reduction in the prices of its popular compact SUV, the Sportage.

    The revised prices, effective from March 4, have been lowered by up to Rs300,000.

    The basic variant, Alpha, has witnessed a substantial decrease of Rs250,000, now priced at Rs7.3 million.

    Additionally, the prices of Sportage’s FWD, AWD, and limited black edition variants have all been reduced by Rs300,000. Consequently, the new prices stand at Rs7.74 million, Rs8.47 million, and Rs9 million, respectively.

    This move comes amid challenging times for the automobile sector in Pakistan, which experienced a significant 50% year-on-year decline in sales during the first half of fiscal year 2024.

    Experts anticipate that Lucky Motor Corporation’s decision to lower Sportage prices could contribute to a resurgence in its sales.

    It’s important to note that while Sportage undergoes a price adjustment, other models such as Picanto and Stonic will maintain their current pricing.

    Kia had already implemented several promotional offers, including installment plans, cashback, and free registration, to entice potential buyers.

    This latest price reduction aligns with the industry trend, as competitors like Chery Tiggo and Changan Oshan have also lowered their prices by Rs300,000.

    Industry observers attribute Sportage’s recent sales challenges to intensified competition, particularly with the introduction of the Corolla Cross in the same price range.

    Although the latter is a hybrid electric vehicle (HEV), it has further heightened the competition in the market.

    Despite Lucky Motor Corporation’s efforts, reports suggest that the previously offered interest-free loan policy and other incentives haven’t generated substantial demand.

    Furthermore, a cashback offer of Rs150,000 on booking across all Sportage variants, which was in place before the price adjustment, failed to attract significant attention from potential buyers.

  • Here’s why Toyota Indus Motor Company is halting car production for one month

    Here’s why Toyota Indus Motor Company is halting car production for one month

    Indus Motor Company (IMC), the leading manufacturer of Toyota vehicles in Pakistan, has announced a temporary production suspension lasting a month due to inventory shortages.

    The company informed the Pakistan Stock Exchange (PSX) of this development.

    Starting on October 17 and concluding on November 17, 2023, Toyota IMC has chosen to halt production in response to insufficient inventory of vehicles and parts stemming from supply chain challenges.

    The company has stated that they will keep stakeholders informed of any adjustments to this plan. This marks the ninth production closure announcement by Indus Motor this year. In the previous month, the company ceased plant operations from September 28 to October 9 due to similar inventory issues.

    In its most recent financial report, Indus Motor recorded a profit-after-tax (PAT) of Rs9.66 billion for FY23, representing a nearly 39 per cent decline compared to the earnings of Rs15.8 billion in the preceding year’s corresponding period.

    The Pakistani auto sector, heavily reliant on imports, has encountered hardships due to government measures to restrict imports and limit LC issuance. Elevated financing costs and substantial car price hikes have also dampened consumer demand.

    In the first quarter of FY24, sales figures reached 20,983 units, reflecting a 40 per cent decrease compared to the same period in the prior year.

    The Pakistani automotive industry is grappling with dwindling demand, primarily attributed to soaring prices, costly auto financing, and increased taxes, all contributing to a year-on-year decline in sales.

  • Mysterious closure: Kia Lucky Motors Pakistan closes four showrooms despite rising sales

    Mysterious closure: Kia Lucky Motors Pakistan closes four showrooms despite rising sales

    Lucky Motor Corporation Limited (LMC) shocked the automotive industry in Pakistan with a surprise announcement on Monday. In a press release issued on the same day, LMC revealed its decision to close four of its dealerships in the country, effective immediately.

    The affected dealerships include Kia Motors Hanna Lake in Quetta, Kia Motors Chenab in Gujrat, Kia Motors Avenue in Dera Ghazi Khan, and Kia Motors Gateway in Mardan. While the announcement was unexpected, LMC emphasized its commitment to transparency and customer-centric practices by informing all its customers promptly.

    Curiously, the press release did not provide a specific reason for the abrupt decision. It comes as a puzzling move for LMC, considering the company’s positive performance in 2023. In contrast to its competitors experiencing declining sales, LMC saw a significant boost in sales during the same period.

    According to Mettis Global, Kia Sportage, one of the company’s popular models, saw a notable 4 per cent increase in total sales Month-over-Month (MoM). Furthermore, LMC managed to sell impressive numbers of other models, with 163 Picantos, 53 Stonics, and 72 Sorentos sold in February 2023 alone.

    The closure of these dealerships raises questions among industry experts and customers alike, as the company’s sales figures seemed to indicate a flourishing business. However, without a clear explanation from LMC, speculation continues to circulate regarding the true motives behind this unexpected decision.