PSMC will be replacing two of its current models (Cultus and Mehran) with Celerio and Alto focusing on the economy segment with the potential to penetrate the imported car market.
Following the trend in regional markets, INDU might introduce a facelift for the current Corolla aiming to steal the limelight from Civic.
Despite skipping a generation for City, HCAR is unlikely to introduce a new model in the near future.
New comers like Renault and Audi will be climbing the bandwagon, but it is unlikely that they will start production before 2018.
We favor INDU among local OEMs with a TP of PKR1,735/share and total return of 23% at last close.