LAHORE: The auto sales increased by 67 per cent YoY during the first four months of the current fiscal year.
Experts say that the increase was mainly due to taxi scheme and overall improvement in economic situation in the country. During the first four months (Jul-Oct) of FY16, local vehicle sales stood at 74,541 units versus 44,550 units in 4MFY15. Tractor segment, on the other hand, posted a decline of 33pc YoY during 4MFY16 to reach at 9,148 units. We attribute this decline to the delay in the launch of provincial tractor subsidy schemes.
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Punjab and Sindh governments in budget FY16 announced subsidy of 25,000/29,000 tractors. However, tractor manufacturers approached the govt officials to shelve the tractor scheme in case govt is running short of funds. Anticipation of the official launch of the scheme is causing farmers to hold back their purchases.
In FY15, volumes surged by 31pc on the back of new model of Toyota Corolla, Taxi Scheme of Punjab Govt and an increase in car financing owing to 42-year low interest rates in the country.
