The Bell about – Elixir Securities Limited

Karachi, June 11, 2015 (PPI-OT): Autos: Purple patch continues

Cumulative volumes rise 30%

Volumetric sales for the month of May clocked in at 19,337 units, up 59% YoY but flat (+1%) on MoM basis. Growth in volumes continued to stem from increased Corolla sales and incremental units dispatched under ‘Apna Rozgar’ scheme. On a cumulative basis, volumes are up by 30% to 162,151 units.

Bull Run continues in INDU and PSMC

Volumes of INDU remained upbeat during the month with total volumes rising by 89% YoY to 5,507 units as momentum from new Corolla (+106% YoY) variant persisted along. PSMC’s taxi scheme variants Ravi (+167% YoY) and Bolan (+134%) led the charge with both variants cumulatively contributing 86% to the volumetric growth. Cultus variant posted sizable gain of 37% YoY while volumes of Mehran were up 13% YoY.

FY16 Budget; a non event for the sector

FY16 budget which was keenly awaited by market participants turned out to be a non event for the auto sector as duty structure for assembly and imported used vehicles remained unchanged. Auto Development Policy (ADP II) which expired in 2012 and is long due, is expected to address the demands of various industry stakeholders and would determine the long term direction of this sector.

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