You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
TRADE CHRONICLE<br />
Ghandhara to assemble<br />
Renault trucks<br />
Ghandhara Nissan Limited (GNL) has<br />
announced its plans to locally<br />
assemble Renault Trucks (RT) by end<br />
of 2019 at the manufacturing site in<br />
Port Qasim, according to a company<br />
release issued recently.<br />
Prior to assembly, RT in partnership<br />
with GNL had launched full range of<br />
Renault trucks. Currently all the<br />
vehicles are being imported in built up<br />
condition from Lyon, France.<br />
GNL is also responsible for the<br />
distribution and after sales service of<br />
three new ranges, notified the<br />
company in a stock filing. Senior Vice<br />
President of RT, Olivier De Saint<br />
Meleuc said Pakistan is an important<br />
market and is developing with large<br />
i n f r a s t r u c t u r e<br />
projects especially<br />
u n d e r C h i n a -<br />
Pakistan Economic<br />
Corridor (CPEC)<br />
w h i c h r e q u i r e s<br />
robust and reliable<br />
trucks to cater to<br />
rising demands.<br />
Chief Executive<br />
Officer GNL, Ahmed<br />
Kuli Khan Khattak<br />
said that local<br />
a s s e m b l y w i l l<br />
generate employment opportunities.<br />
He said that RT would comply 100<br />
per cent with the demanding<br />
specifications in terms of safety<br />
required by all the major oil<br />
companies. GNL officials, however,<br />
refused to comment on the<br />
investment details in the project. He<br />
said that it is not a joint venture but an<br />
extension of the cooperation and<br />
distribution agreement signed<br />
between the two companies in early<br />
<strong>2018</strong>. He said that the company is<br />
planning to assemble 100 units a<br />
year which may create over 100<br />
direct jobs.<br />
Letter to Dawn<br />
‘Kabuli tyres’<br />
Auto Sector Update: Nov'18 volumes tumble<br />
but sedan sales are holding up<br />
I SEE people buying cheap,<br />
second-hand tyres also<br />
known as ‘Kabuli tyres’. The<br />
life of tyres is a maximum<br />
three to five years after<br />
manufacturing. People do<br />
n o t t h i n k a b o u t t h i s<br />
important fact.<br />
They buy a car of about one<br />
or two million rupees but<br />
never pay attention to its<br />
tyres. The car runs on tyres. If<br />
tyres are weak, they can<br />
burst anytime and the vehicle<br />
can overturn, resulting in<br />
injuries or even death. I also<br />
ask motorway police to<br />
check the tyres of the<br />
vehicles and tell the people<br />
about the hazards of using<br />
second-hand tyres. The<br />
g o v e r n m e n t s h o u l d<br />
discourage second-hand,<br />
expired tyre shops.<br />
Muhammad Kareem, Quetta<br />
Pakistan's Auto industry recorded sales of<br />
17,507 units in Nov'18, down 17%yoy, This<br />
takes 5MFY19 volumes to 100,999 units, down<br />
4% yoy. Continued price increases and higher<br />
interest rates are putting the brakes on auto<br />
sales. In addition, commercial vehicle segment<br />
is still feeling the impact of the non-filer ban.<br />
While there is a sharp decline in Nov'18<br />
numbers, player/model wise data suggests<br />
mixed trends. In Nov'18, sedan sales rose by<br />
5% yoy but jeep/pickup category recorded a<br />
44% yoy decline. Indus Motors (INDU)<br />
continue to outperform its peers, with Nov'18<br />
sales of 5,479 units, up 2% yoy. This was<br />
mainly driven by Corolla sales, up 9% yoy,<br />
while Fortuner/Hilux sales continue to exhibit<br />
declines.<br />
Pak Suzuki (PSMC), on the other hand,<br />
remained the laggard as Nov'18 sales dipped<br />
25% yoy to just 8,511 units. The company<br />
continues to suffer from non-filer ban on new<br />
cars, in our view; commercial vehicles<br />
including Bolan and Ravi sales dropped<br />
massively by 39%yoy and 28%yoy,<br />
respectively, in Nov'18. Furthermore, Mehran<br />
saw the sharpest decline of 44%yoy, as the<br />
model will be phased out by Apr'19. We think<br />
the above two factors are also contributing to<br />
poor numbers, in addition to macroeconomic<br />
pressures. Sales of Honda Atlas (HCAR) also<br />
contracted by a significant 23%yoy in Nov'18<br />
to 3,452 units, owing to 76%yoy drop in BR-V<br />
volumes (Civic/City sales decline was more<br />
modest 2% yoy) .<br />
Tractor growth was also in red, with volumes<br />
dropping by 33%yoy to 3,750 units in<br />
Nov'18. Reasons for this include bearish agrioutlook(due<br />
to water shortage), absence of<br />
provincial subsidy schemes and slowdown in<br />
agricultural activity. Truck sales continued on<br />
their declining trajectory (since Jul'18) with<br />
Nov'18 sales of 571 units, down 13% yoy due<br />
to a drop in construction activity. Inline with<br />
our earlier thesis, premium cars look like they<br />
can weather a tougher macro environment.<br />
TRADE CHRONICLE - Nov.~ Dec. <strong>2018</strong> - Page # 34
Change language