JS Securities Limited - JS Research.

Karachi -- March 04, 2021 (PPI-OT)

Auto volumes of Big-3 to grow by 31% YoY in February

Auto volumes for the Big-3 OEMs are forecasted at 15,700 units for Feb-2021, depicting YoY growth of 31% for the month.

Pak Suzuki (PSMC) is expected to record 66% YoY growth with ~8,900 units sold in Feb-2021, with strong numbers expected for Alto, Cultus and its LCV brands. For Alto in particular (roughly half of PSMC's total volumes), given its relatively affordable price, coupled with cheap financing, the car has emerged as a new favourite. Its better mileage (as high as 18km/litre in intra-city travel - as per some of our interviews with its recent customers) has also resulted in a pickup in its sales.

Honda Atlas (HCAR) is anticipated to record a 12% YoY increase in volumes in Feb-2021, with higher volumes expected for Civic compared to City, where the latter is facing stiff competition from the likes of Yaris and reportedly one new entrant...