Malaysian Proton rolls out in Pakistan

Sep 18 - 24, 2006

Proton a Malaysian National Automobiles company launched its automobiles in Pakistan last week. In fact, international automobile players are taking interest in the automobile sector in the backdrop of existing gap between demand and supply of cars in Pakistan.

Proton is a Malaysian National Automobile Company, which holds 60 percent market share in Malaysia has come a long way since its inception in 1983. It is worth mentioning that LOTUS, a world famous European Sports car manufacturer (Since 1952) was bought by PROTON in 1996, so now the legendary LOTUS is operating under flag of PROTON.

Royal Automobiles are the sole distributors of PROTON cars. An agreement has already been signed between PROTON Automobile and Royal Automobiles, said Executive Director, Royal Automobiles, Sultan Mehmood.

In Karachi region, Royal Automobiles would operate their own outlet whereas in other Parts of the country they have a chain of distributors, fully supported by after sales service facility to PROTON customers.

At the moment, PROTON is launching its four different models both in CNG and petrol while all the cars would be imported as CBU units. However, the company plans that imports would continue for next one and half year and by that time PROTON would establish its assembling plant in Pakistan.

Muhammad Fiesol Musa, Export Division PROTON outlined the PROTON business network around the world and said that in terms of market PROTON actively pursuing market across four region including United Kingdom/Western Europe, Middle East, South Asia and Australia.

The total volume of Proton's sales in Malaysia was estimated at 182,924 units in year 2005 indicating almost more than 60 percent of the market shares in Malaysia only.


The rise and fall in the sales of automobile during last month gives an interesting view of the overall auto sector performance in Pakistan.

According to Pakistan Automotive Manufacturing Association (PAMA), the auto sales and production figures for the month of August 2006 indicate that sales volumes stood at 109,240 units, 11% down compared to 123,336 units during July August 2005 primarily due to 22% YoY decline in motorcycle sales.

Sales figures of trucks and tractors soared by 18% and 19% to 756 units and 7,974 units respectively. Similarly cars and light commercial vehicles (LCVs) segment of the automobile industry also posted superb growth at 13% and 11% respectively. Toyota Corolla continued to lead the domestic car segment with 20% market share. Furthermore, in the 1000cc range, Suzuki Cultus' sales were exceptional while Suzuki Mehran emerged as triumphant in the 800cc range during August 2006. Among the listed auto assemblers, we recommend a positive stance on Pak Suzuki and Indus Motor.


Pak Suzuki depicted robust sales performance during the July August 2006 period. Volumetric sales of the company increased by 21% to 18,081 units compared to 14,957 units during the same period last year. Sales of Suzuki Alto surged by 85% to 3,821 units followed by Suzuki Ravi, Suzuki Cultus and Suzuki Bolan respectively surging by 70%, 26% and 22% to 1,268 units, 4,049 units and 2,029 units. Surprisingly, Suzuki Mehran's sales declined by 7% to 5,297 units owing to the increased competition from imported cars that are available at competitive prices. Pak Suzuki's sales during the month of August 2006 soared by 37% to 10,439 units compared to 7,642 units last month.


Indus Motor's sales during the first two months of the current fiscal posted sanguine growth at 54% to 8,430 units compared to 5,462 units last year. Toyota Corolla remained the hot favorite domestic car with sales volumes increasing by 64% to 6,212 units during the July August 2006 period. Daihatsu Cuore's sales also increased by 22% to 2,201 units compared to 1,278 units on the back of increased promotional activities. However, during August 2006 only 4 units of Toyota Hilux were sold compared to 13 last month.


Honda Atlas Cars' has introduced its new model of Honda Civic recently. Honda Civic's sales have rocketed considerably during August 2006 to 732 units, portraying 164% upsurge compared to 277 units in July 2006. However, sales of Honda City depicted 35% decline to 821 units during August 2006. The company's fortunes are all based on acceptance of the new Civic model. Nonetheless, it should be noted that prices of the new Honda Civic are somewhat higher compared to cars available with the same engine power.


Sales of Dewan Farooque Motors during Jul Aug 2006 period decreased by 11% to 1,550 units primarily due to 28% decline in Hyundai Santro sales. Sales of Hyundai Santro stood at 588 units compared to 813 units previously. On the other hand, Hyundai Shahzore sales remained almost intact at 962 units compared to 934 units during July August 2005. However, sales figures of Hyundai Shahzore decreased by 19% to 431 units MoM.