Latest data provided by Simonis Storm Securities shows that vehicle sales increased by 23.5% month-on-month but declined by 5.4% year-on-year to 1 134 units at the end of June 2018.
Sales had increased by 11.3% month on month to 918 units in May 2018 after a massive drop of 27.8% reported in the prior month, the firm had reported previously, with the uptick mainly supported by light commercial vehicles which increased by 110 units (+27.7%) in the same month.
The firm says that the annual decline can be attributed to negative growth in extra heavy and passenger vehicles by 41.6% and 11.1%, respectively.
Says the firm, “In our view, the demand for extra heavy vehicles will remain low over the medium term as construction activities remains gradual.”
The monthly increases were a result of an increase in all categories with an exception of buses and heavy commercial vehicles that remained mute in June.
“We believe that the hype around vehicles sales in June was driven by the tourism peak season that started from May and ends in October. This was a seasonal increase and we do not expect excessive increase in new vehicle sales in the coming month,” says Simonis Storm.
Meanwhile vehicles channeled through rentals have increased by 774% m-o-m to 236 units in June 2018.
“This increase has been seen historically during this period with the Toyota brand increasing market share to 54% in June compared to 45% in May 2018. We expect total vehicle sales to decline by 12.8% to 11 605 units for the year,” added the firm.