JS Securities Limited - JS Research.

Karachi -- June 08, 2021 (PPI-OT)

Auto Volumes to decline by 8% MoM in May

Auto volumes for the big-3 OEMs are expected to grow 235% YoY in May-2021 to 14,984 units, taking cumulative volumes for 11MFY21 to 161,613 units, reflecting an increase of 58% YoY.

On the other hand, volumes are expected to decline by 8% MoM in May-2021, compared to average MoM decline of 3% in May over April in the preceding 5 years (2014-2019; excluding 2020 due to Pandemic anomaly). The larger-than-average expected decline in volumes is due to (1) elongated Eid holidays, and (2) impact of new entrants.

The MoM decline is expected to be lower for Pak Suzuki (PSMC, -3%), given relatively lower competition in its market segments, whereas Indus Motors (INDU, -13%) and Honda...