Friday, January 17 2025

Suzuki Motor president says India to be global production hub for EVs
India will be the global production hub for Suzuki Motor’s electric cars and it plans to export the vehicles back to Japan as well as other markets, such as Europe, despite a slowdown in sales of EVs, the carmaker’s chief said on Thursday. India is the biggest market by sales and revenue for Suzuki Motor, present there through its majority stake in market leader Maruti Suzuki. On Friday, Maruti will launch its first EV in India — the e Vitara mid-sized SUV — which will be exported globally and also supplied to Suzuki’s partner Toyota Motor Corp. “For Suzuki, the scale merit in India is our strength, and we will fully leverage this advantage to supply high-quality and appealing products across various markets such as Europe, Japan, Middle East, Africa, Central and South America,” Suzuki Motor President Toshihiro Suzuki told reporters in New Delhi.
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Plan to electrify conventional vehicles
A day after announcing a reduction in power rates for electric vehicle charging stations (EVCS), Pakistan on Thursday sought France’s support for access to its Green Fund to enable the transition of conventional small vehicles to electric technology to ensure a cleaner environment and savings in oil imports. Power Minister Awais Ahmad Khan Leghari formally discussed the proposal with France’s Ambassador Nicolas Galey to support the transition of small vehicles to electric technology in Pakistan. The government estimates that about Rs50,000-150,000 investment could enable the conversion of bikes, three-wheelers and small vehicles of up to 800cc from fossil fuels to electric engines. About $6bn worth of petrol is reportedly imported annually to meet the requirements of around 10 million motorbikes alone.
Related news categories: auto-assembler business economic-indicators misc

Wednesday, January 15 2025

Car sales surge by 51% in H1FY2025
Passenger car sales rose by 51.3% to 46,398 units during the first six months of the current fiscal year (H1FY2025) compared to the same period last year, driven by skyrocketing remittances, falling interest rates, and the arrival of a new year, which boosted the confidence of local buyers. The car sales figures also reported a slight month-on-month decrease. However, the cumulative total during the period indicates positive signs for the struggling automotive industry of the country. According to the Pakistan Automotive Manufacturers Association (PAMA), sales of trucks and buses rose by 89.1% to 1,494 units and by 76.7% to 304 units, respectively. Sales of jeeps and pickups increased by 61.2% to 14,174 units. Meanwhile, sales of two- and three-wheelers (motorbikes and rickshaws) surged by 28.5% to 696,455 units.
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EV sales tax removal proposed
The Ministry of Commerce has recommended the removal of cap on electric vehicle (EV) batteries for cars, vans and sports utility vehicles (SUVs), as well as elimination of 25% sales tax on EVs. The issue was taken up in a recent meeting of the steering committee focused on policies for EVs. During the meeting, the additional secretary of the Ministry of Commerce recommended the scrapping of cap on EV batteries for cars, vans and SUVs and the withdrawal of 25% sales tax on EVs valuing at above Rs4 million. The secretary of the Ministry of Industries and Production (MoIP) directed the Engineering Development Board (EDB) and the New Energy Vehicle (NEV) Policy team to consider those proposals. Standards for EVs were suggested to be devised by Pakistan Standards and Quality Control Authority (PSQCA) in collaboration with EDB, with a focus on value addition to encourage local manufacturing.
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Auto sales surge 54pc in July-December
Despite the absence of sales numbers by Saazgar Engineering Works Ltd, the entire auto sector, barring the tractor segment, showed robust sales performance during IHFY25. Sales of cars, LCVs, pickups and vans surged 54 per cent to 60,676 units in July-December 2024-25 from 39,453 units in the corresponding period last year thanks to declining interest rates, increasing remittances and falling inflation. In December 2024, car sales clocked in at 9,820 units, up by 69pc YoY and down by 3pc month-on-month (MoM). Myesha Sohail of Topline Securities linked the marginal MoM decline primarily to the end-of-year effect, with buyers postponing deliveries or purchases to obtain new-year registrations.
Related news categories: auto-assembler business economic-indicators misc