KARACHI: Domestic car sales have plunged by 53 percent in fiscal year 2019/2020 owing to slow economic activity and outbreak of coronavirus, analysts said on Monday.
According to statistics released by Pakistan Automobile Assemblers Association (PAMA), the total car sales plunged to 110,583 units during fiscal year 2019/2020 as compared with 235,229 units in the preceding fiscal year.
Analysts at Topline Securities said that the year remained turbulent for the car assemblers, as slow economic activity and high interest rates affected demand at the start of the year. In the last quarter, sales were severely affected by COVID-19 outbreak.
The domestic car sales also witnessed 52 percent decline to 8,446 units in June 2020 as compared with 17,468 units in the same month of the last year.
However, the sales increased by 77 percent when compared with the sales of May 2020 as car dealerships became operational after lifting of COVID-19 related lockdowns/restrictions.
Honda Car (HCAR) and Indus Motors (INDU) recorded 514 percent MoM and 199 percent MoM growths, respectively.
The major decline came in sales of Honda Cars which fell by 63 percent to 16,390 units in fiscal year 2019/2020 when compared with 44,234 units in the preceding fiscal year.
Indus Motors witnessed 53 percent decline to 28,378 units in fiscal year 2019/2020 as compared with 60,993 units in the preceding fiscal year.
The sales of Pak Suzuki Motors registered 49 percent decline to 65,815 units during fiscal year 2019/2020 as compared with 130,002 units in the preceding fiscal year.