KARACHI: The sale of locally manufactured cars has declined by 45 percent to 78,806 units during first seven months (July – January) 2019/2020 as compared with 142,579 units in the corresponding months of the last year.

According to data released by Pakistan Automobile Manufacturers Association (PAMA) on Tuesday, massive decline of 64 percent recorded in Honda Cars which fell to 10,356 units in first seven months of current fiscal year as compared with 28,796 units in the same months of the last fiscal year.

Indus Motors recorded 53 percent decline to 18,197 units during July – January 2019/2020 as compared with 38,880 units in the same period of the last fiscal year.

Pakistan Suzuki Motors witnessed 33 percent decline to 50,253 units during first seven months of current fiscal year as compared with 74,903 units in the same period of the last fiscal year.

Analysts at Topline Securities said that Pakistan’s car sales declined by two percent on Month-on-Month (MoM) basis in January 2020; contrary to historical trend as care sales tend to rise MoM in January owing to the new year phenomenon. The last time car sales declined in January was back in 2006.

They further said that car sales have increased by 87 percent MoM excluding the sales of Pak Suzuki Motors. Recall that PSMC had announced increase in car prices mid-December 2019 to be effective from January 2020, resulting in pre-buying (up 49 percent MoM) in December 2019.