The Auto sector is back on track after a lackluster FY20 with total sales for FY21 climbing to 181,397 units (↑62% YoY). However, monthly sales (PC, LCV, SUV) continued their declining trend from high of 20,813 units seen in Mar’21 to 13,750 units (↓12% MoM) in Jun’21 due to increased vehicle delivery times. On a MoM basis, PSMC faced the largest decline with sales of 5,106 units (↓39% MoM) as consumers withheld purchasing prior to budget announcement, INDU stayed largely unfazed with sales of 4,535 units (↓3% MoM), while HCAR witnessed a sharp recovery with sales of 3,305 units (↑65% MoM) due to higher Civic/BRV sales. New development in the sector during the month included, the launch of Hyundai Sonata (D segment Sedan), kick off of the local production of the BAIC BJ40 (4×4 SUV) with expected delivery in 4QCY21, Toyota Revo facelift reveal and price cuts across the board for all consumer vehicles post budget. In the near term, the Honda City’21 is expected to be unveiled post Eid.

Courtesy – BMA Capital Management Ltd.