Car sales dip by 8 percent in July 2020

Car sales dip by 8 percent in July 2020

KARACHI: Domestic car sales have registered 8 percent decline to 11,501 units in July 2020 as compared with 12,482 units in the same month of the last year.

Pak Suzuki Motors registered 40 percent decline in its sales to 4,991 units in July 2020 as against 8,375 units sold in the same month of the last year.

However, Indus Motors and Honda Cars posted growth of 68 percent and 48 percent, respectively during the month under review.

Analysts at Topline Securities said that Kia Lucky Motors (non-member of PAMA) continued to perform well. The company recorded car sales of around 1,500 units in July 2020.

Moreover, car sales increased by 36 percent MoM in July 2020 as COVID-19 lockdowns eased with car assemblers ramping up production levels to meet pent-up demand of consumers, which is evident from 1-3 months of delivery time from the date of booking.

All three main car assemblers reported MoM increases, with INDU reporting the highest increase of 60 percent MoM, followed by PSMC (+28 percent MoM) and HCAR (+23 percent MoM).

Atlas Honda (ATLH) recorded motorbike sales of 94,003 units in Jul-2020, up 17 percent YoY and 4 percent MoM.

The analysts said demand for cars to grow stronger as lower interest rates for auto financing has revived demand for new cars.